The modern world is all about going digital. Ranging from small startups to multi-billion dollar enterprises, the use of modern technologies for conducting businesses has never been greater. With the introduction of newer methods to secure and streamline our access to data, the concept of virtual data rooms comes into play. The new generation of millennial entrepreneurs does not usually consider any physical storage forms of data over its digitized and superior variant.
A virtual data room (VDR) is an online archive of information that works similar to physical data rooms in the sense that it is used for storing, reviewing, and sharing data. These data rooms are predominantly utilized during merger and acquisition deals, stakeholder requests, venture capital transactions, and many other forms of business requirements. Due to their extreme efficiency, the use of virtual data rooms is a mandatory aspect of many successful businesses around the world. This article discusses the concepts that make virtual data rooms a necessity for your business or individual use.
1 – Easy Accessibility
While it is not mandatory to put data rooms online, most organizations opt for it due to easy accessibility from any corner of the world. This is a massive benefit that physical data rooms can never provide. Investors, clients, and customers can all access the data at any time from anywhere, depending on their levels of access. These limitations in access are important to separate data from stakeholders who do not need it. Simplicity is a key target for many inspiring organizations around the world.
Virtual data rooms ensure companies do not suffer due to delays occurring during the transfer of data. An emergency transaction requiring information from the company database needs rapid access to it. Physical methods of data storage are not ideal in such a scenario as the whole process of finding the documents might take a long time compared to using virtual data rooms. A few clicks on a computer console are usually enough to retrieve the desired data.
2 – Reduced Costs
Storing data in physical form can be exceedingly expensive, primarily due to the amount of space needed to accommodate physical files. A massive room of papers and files may contain the same amount of data as a single online data drive is capable of storing. Expanding businesses are required to expand their physical data rooms along the way due to the insurgence of more data, leading to increased costs.
Additionally, the cost of logistics to operate physical data rooms also rises with the company’s expansion. More people are needed to maintain these storehouses as well. Virtual data rooms also need effort in handling, but to a lesser extent, which effectively lower costs for the organization. The data stored here does not need preservation from physical damages or depreciation. Coffee spills, torn paperwork, and lost files are all scenarios where additional expenses are generated. These accumulated figures are not small if analyzed annually. Virtual data rooms solve this problem with ease.
3 – Increased Security
One of the best features that virtual data rooms offer is enhanced security compared to physical file systems. Data security is of paramount importance for any business, be it small or big. These data rooms provide multi-factor authentication services for data protection, along with various cryptic algorithms that encode your data and make them unusable to unwanted users. Sensitive data may be kept behind even higher levels of security layers depending on the requirements of the client.
Furthermore, physical damage to the data in virtual data rooms is impossible, unlike its physical counterpart. An arson disaster may burn and destroy hundreds of physical files but cannot affect virtual data in any way. Indeed the servers and drives in a virtual data room can surely be damaged, but the data itself is digital and untouched. Multiple copies of data can be kept in various locations around the world with minimal effort. The retrieval of this data is also blazing fast compared to its physical counterpart.
4 – Smooth Transactions
Businesses have the sole aim to provide the best services feasibly possible by them to their customers, and one of the key aspects of sustained high-quality services is the lack of effort in transactions. Virtual data rooms enable this feature and have proven to be a turning point for many organizations in terms of customer satisfaction and recorded revenue numbers.
The use of virtual data rooms ensures customers get a broad view of the products available. Any bid to purchase a product can be made instantaneously, resulting in rising numbers of bids down the line. Customers can quickly cancel or change orders without the need to go through formal procedures involving his or her physical presence. In the case of a successful order from a customer, the deal can be tracked throughout the entire process. The improved security levels add to the desire of most customers to choose the digital path nowadays.
5 – Going Green
Thousands of trees are being cut down every year for the purpose of producing paper. Adverse environmental impacts from organizations can easily be neglected by most people, but the problem is very real. Smaller companies, once accumulated, may cause more damage than a single large one. Virtual data rooms provide a solution to this global issue.
Paper-based systems in physical data stores are a necessity and demand a constant input of paper for their functionalities to continue. Maintaining computers and servers does not require deforestation for supplies. This negates any contribution to global pollution problems. Most sectors are gradually shifting toward a paperless future because of this.
Despite the prolonged use of physical data stores by organizations for years now, modern times are bringing about smarter solutions with remarkable effectiveness. With businesses going global, data security and flexible accessibility are high on the agenda. Virtual data rooms provide it all!