Benefits of Using Online Data Room Software

In the last ten years or so, businesses have shown keen interest in online data storage facilities for multiple reasons, including data security and paper costs. That is the reason why virtual data rooms have gained growing popularity in different business industries around the world.

The most important thing is that this hype is not just a temporary trend; online data room software is actually reshaping data management practices, bringing businesses together. The best part? A virtual data room is suitable for any type or size of business.

Read on to discover more about VDRS and how businesses benefit from them.

What are virtual data rooms?

A virtual data room or electronic data room is a secure, cloud-based:

• Data repository where firms, corporations, enterprises, professionals, or any type of business can store and access their corporate documents online.
• Virtual workspace helps businesses to ensure maximum collaboration within and outside the organizations.
• Deal room where businesses can directly deal with their clients.

Virtual data rooms are not just data storage facilities; they are business solutions that help organizations in multiple ways. Here are some of the top advantages of virtual data rooms.

Top benefits of online data room software

1. Data protection

Most businesses and professionals use virtual data rooms for data protection. Where digitalization automated business practices, it created an opening for the bad guys as well. Many online storage facilities are easy prey to hackers because of their weaker security protocols.

Data room software, on the other hand, is totally different from other data storage options in the market. First of all, VDRs do not involve third parties; your data is only accessible to you.

Secondly, an unauthorized user cannot access your data room even if a user’s password is compromised. The two-step verification feature makes sure that a user can log in after clearing multiple entry barriers.

Apart from that, virtual data rooms allow you to share or store data in encrypted form. That means even the data room services you are using cannot access your data.

2. Better control over data

We have just mentioned the basic security features of data rooms above. A virtual data room gives an unbelievable level of control over your business data. You can choose who can access what, when, and to which extent.

For example, you can give customized access to users according to their roles and responsibilities in your data room. You can restrict one or multiple users from accessing a file, folder, or a complete section of the data room.

You can limit any user from editing, downloading, or printing any document by applying the “view only” mode on that document. Data room management or document creator can revoke access to the document even if the user opens it.

A user can add digital watermarks to a new file to avoid copyright issues in the future. Not only this, the user will get notifications whenever someone opens or edit that particular document.

Furthermore, the data room management can remove any device connected to the data room. With all these user-oriented features, it would be unfair to compare virtual data rooms with other data storage solutions.

3. Improved work efficiency

As we mentioned above, online data rooms are very effective virtual workspaces with handy collaboration tools. Data room users can share, edit, or access any document depending on their permission levels. They can also work on shared documents, add comments, send copies of any file to multiple users, and whatnot.

Apart from that, virtual data rooms have the live-chatting feature. Users can communicate privately (one-to-one) or participate in group discussions. Present-day data rooms also offer audio and video conference features for online meetings.

Depending on data room settings, users are notified whenever there is a new activity or content added to the data room. Users don’t have to move from folder to folder to find a file; they just have to enter the keyword, phrase, or file name in the search bar and access that file in a matter of seconds.

Smooth and secure data sharing, 24/7 collaboration, customized access levels, document access control, and monitoring tools help organizations to conduct business transactions on VDRs.

4. Budget-friendliness

Virtual data rooms are cost-cutting business tools. They help you get rid of one of your major business expenses — paper and printing costs. An electronic data room is a virtual workspace where your employees can collaborate even from their homes.

You might think that such cutting-edge software may drain your financial resources, but the reality is different. Virtual data rooms are just like investments; the more you invest, the better it gets. You can avail flexible pricing plans of data room providers according to your needs. You don’t have to pay for the unnecessary services. And best of all, you save significant costs on office expenses as well!

Final words

Business data protection was always a concern for organizations worldwide until virtual data rooms came into the equation. VDRs have automated business documentation, provide maximum data security, ensure seamless communication and collaboration, and are easy to use and cost-cutting options.

If you consider opting for a reliable data room service, be sure to conduct your data room comparison and go for an option you like. To save you some time and effort, here are some of the best data rooms in the market:

• iDeals
• Merrill
• Firmex
• DealRoom
• Brainloop
• Watchdox

Before choosing any of the above, be sure to request a free virtual data room tutorial or demo. This way, you’ll get well acquainted with the software before investing in it.