How does a virtual deal room work?
Online deal rooms became rather viral during the past a couple of years. Companies get a lot of benefits implementing them. So there is no surprise the electronic data room market became pretty big and profitable. New providers appear often, and every one of them does its best to amaze customers with useful features on this endless war for the loyalty of the audience.
But do online deal rooms really differ that much from virtual repositories? And why would a brand give money for it? Since there are lots of people who might ask these questions, let’s learn the technology behind the data room.
What is a data room?
Let’s begin with the basics and talk about the app itself. It is a virtual repository where enterprises can store their sensitive data. But although it is the main ability of such technology, the list of its tools doesn’t end on simply being an archive. VDR offers its users a complete interface for all enterprise interactions. Here employees can share the information, discuss details, get prepared for meetings and much more. Basically, implementing this technology a firm will have a broad range of important instruments that will allow to lift the workflow of the team and whole firm.
So, while ordinary virtual repositories can only offer a virtual space so a brand director can keep the data there, VDRs are a complete firm tool. These instruments can be used during Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other kinds of audits.
Security is vital
Sure, not every firm interacts with the classified data on the every day basis. But although this information can be not really important, any business owner would want to have their documents stolen or illegally used. Online repositories like widely used Dropbox or Google Drive are not perfectly safe to use – a lot of cases of data leaks have shown it to us rather clearly.
Thus, the most valuable difference of virtual data rooms is the data encryption and diverse ways of protection. Sure, ordinary virtual storages encrypt their transmission lines too – but not exactly the transferred information itself. And if someone else has a direct link to the document, it can be easily stolen by malefactors.
Deal room providers encrypt not only transfer lines but the data as well. There is no way they will be exposed to any kind of threat caused by malicious acts of thieves. Additionally, all digital data rooms have a two-factor authentication. It means that to enter the system the the party will have to enter the code that was sent to their smartphone in an SMS upon signing in.
Besides that, the owner of the online meeting room can manage the level of access other employees have. Settings can be changed at any second. And if any unusual situation appears, the room owner can destroy the document remotely or stop the access to it.
Unlike ordinary online repositories, data rooms are created to upgrade the work of the company and among team members. So besides that parties can share the information with each other, they can as well be involved in talks, create different votings, create Q&As and much more. It is very useful to have all tools in one interface.
Moreover, leaders of companies have a chance track the work process of their businesses in the virtual meeting room . Some providers even offer an artificial intellect implemented in their programs. It helps to forecast events and tendencies and get deeper insights. Moreover, directors can follow thpartners and see if there are some problems in the work of the team.
In conclusion, there unquestionably are a lot of reasons to implement a VDR in your business and stop using simple online storages best virtual data room . Once you try a data room, you will never want to get rid of it.