VDR for different business industries
Get an insight into virtual data rooms and the benefits they can bring to various business industries. Learn more about the main principles of VDR services functioning and why they cannot be equated with cloud storage. Scroll down to examine the main highlights necessary to pay attention to while choosing a VDR provider.
A brief overview of the VDR technology
A virtual dataroom is a secure space that contains a company’s corporate data (or several companies in case of shared usage).Virtual data room providers allow users to manage various documents and distribute them among a certain circle of individuals with access rights (clients, investors, company management). With a unique set of features, rooms have become a revolutionary way of doing business without the need for face-to-face interaction. A good example of this interaction is M&A virtual data room.
Main features of best data rooms
Most way-out data room services come with the following features:
- advanced documents management with the ability to use bulk file uploading, automatic index numbering, etc.;
- progressive data security with controlled encryption, customizable permission system, two-step authentication, and so on;
- ease of use (multilingual interface, support for mobile OSs, etc.);
- fully customizable interface;
- high rates of data transfer rate and uptime.
Differences between VDR and cloud storage services
Despite the visible similarities between VDRs and cloud storage services, virtual data room software come with several key differences, namely:
- higher level of reliability and safety;
- high availability, so you don’t need to download a .exe file and install software to get access to files;
- scalability, thanks to which it’s possible to work with big-data spreadsheets without crashing your computer.
The relevance of virtual data rooms for business
The electronic data room software is a relatively new way to share critical business information. However, it’s already conquered the market and is used by companies from various business industries.
- Financial sector. Companies that work with critical information need secure ways of delivering documents and control of access rights to data for branches and external contractors.
- Design organizations. Such companies are often faced with a situation where a working group needs to provide access to data for a certain period. It is guaranteed to block (revoke) access to documents after completing the project.
- Communication service providers. Telecom operators need tools to protect user data and label documents by regulatory requirements..
- Retail enterprises. Retail organizations need to protect the data that is on the devices of merchandisers/sales representatives and may have commercial value.
- All organizations that require modern protection and controls over the distribution of information transferred to external counterparties.
There are a lot of purposes the VDR technologies are in such high demand among different business industries, but the main are the following:
- for comprehensive analysis of buyers and sellers as one of the main stages of mergers and acquisitions (virtual data room due diligence);
- to share information with potential investors and further fundraising;
- for interaction between company representatives and building strategic partnerships
- to create a communication platform to share experience between company representatives and the involved third parties;
- for safe storage of all kinds of corporate files and documents (multimedia and text files, presentations, etc.)
- for consultation purposes;
- to exchange information on new developments and products in manufacturing industries.
Key characteristics of the VDR provider
Initially, most VDR providers offer software with a basic set of tools that can be changed at the stage of customization. As a rule, these changes can depend on the scale of the project, the number of users, the business industry, etc. But what universal characteristics are it necessary to pay attention to while choosing a VDR provider?
Questions about online data room software security are top priorities because it is crucial to realize where and how the data will be stored. It is important to learn more about the location and type of servers in this case. When it comes to cloud storage, which third-party provider will be responsible for information safety?
Speaking about data privacy, it is essential to consider the provider’s compliance with the GDPR requirements and the ISO27001 certificate.
This characteristic is essential in large projects like M&A. It is necessary to pay attention to the running time of the support team, the available communication channels, the ability to delegate tasks (for example, downloading files, issuing access permissions, and so on). The location of the support team office is also essential: whether they are in a single location or spread all over the world.
Operating in a virtual data room should be as intuitive as possible. Even taking into account the different levels of users’ skills, they should quickly and efficiently adapt to the provided tools.
Since the main technological features of VDRs have been described above, it’s worth focusing on additional ones:
- time bomb for files: thanks to this option, it is possible to set a time limit for uploading various types of files;
- upload by e-mail: thanks to this option, you can attach files to an e-mail and send them to your project’s address. Subsequently, the documents will appear in the VDR;
- Buyer Management System: this option allows buyers to manage their team members;
- integration with contract review platforms: this option allows you to quickly and automatically check contracts in the VDR;
- editing: this option helps to search for words and phrases at the top level of the VDR and edit information in a few clicks.