What is a Virtual Data Room?

virtual data rooms

A virtual data room is an online platform that centralizes the management of documents for companies that want to streamline workflows and keep sensitive information secure. It eliminates the need to mail physical files and makes it possible for teams to access records from anywhere at any time. Its cloud architecture means there are no significant hardware needs for users, besides the internet connection and a modern internet browser. Virtual information spaces are popular with life science and technology companies which need to safeguard confidential information and close deals.

Streamlining workflows

When it comes to managing documents, most individuals need to rummage through folders to find the information they’re looking for. Virtual data rooms can save time and effort by automating this process. With the use of a simple search, user can find the information they’re looking to find in mere minutes. Furthermore, most VDRs also offer advanced features like redaction and fence view that help to ensure personally-identifiable data stays private. Fence view, for instance, blacks out certain sections of a file, so that only an administrator is able to view what’s hidden, while keeping the rest of the record visible.

Securing sensitive information

Many companies share confidential papers regularly. This type of documentation is essential for a variety reasons for example, due diligence in mergers and acquisitions. It can also be used for working with clients. VDRs are the most effective method of sharing these documents with third parties without any compromise in the confidentiality. They are also cheaper than bringing experts and other stakeholders to another city via plane to examine physical documents.

A virtual information space isn’t only a place to store and share confidential data, but can also help make collaboration much more efficient. Businesses can avoid costly errors by utilizing a platform that allows multiple teams to work simultaneously on the same project. This type of platform can also help companies stay in compliance with regulatory and industry standards.

Most trusted vendors have been certified to a minimum of ISO 27001 and SOC 1/2/3. They also have GDPR and HIPAA certifications. Additionally, they provide an array of security features that can be tailored to the needs of any organization. They include two-factor authentication, data encryption, restriction by IP address, custom NDAs, and more.

Businesses that want to improve their workflows and collaborate better must choose the right virtual data rooms. It is important to look through the various options and choose a vendor that can offer flexible pricing. Also, look for an initial trial version of the software to ensure you can test it out before committing to an annual subscription. It’s important to choose the service provider that provides 24/7 customer support and will respond to all inquiries quickly. This will let you feel confident about your choice and make a choice that will benefit your business.