Recently, the activity of virtual data rooms has become one of the most discussed and frequently used. Forecasts in this area report that the VDR market will not stop growing and will reach almost $2 trillion by next year. This is because more and more organizations are moving away from the physical storage of documents and are opting for secure digital storage. VDR used to be used mostly only in mergers and acquisitions, but now it has a wider range of applications, including in the economic sphere. In this article, we’ll talk about how VDRs handle the storage of important data.
What is a virtual data room and what is stored there?
Virtual Data Room is a modern solution for storing important documents in a digital form, which provides full confidentiality and access to which only a trusted person in your company, or in other words the administrator has. This space is very well equipped with security features and encryption, the level of which can be compared to the protection of banks or military security.
Only the administrator has the right to decide which user will have access to certain information and to what extent he can do this because the administrator can easily prohibit the copying or printing of texts. Also, the VDR manager can easily invite outsiders into his space, and just as easily revoke their access to it. All these features together give a special guarantee that your valuable data will always be under control and can be safely transferred to others (by virtue of transactions).
It is also a very convenient solution because the people who have access to VDR can work remotely within it, study documents, make edits, or speak to each other.
As for the content of the data room immovable (in french data room immobilier), all of the most valuable company documents are placed in this space, the loss of which can threaten the ruin of the company. As a rule, it includes
- Legal documentation, property rights, or intellectual property
- Financial documents, reports, audits
- Strategic and marketing data, sales information
The VDR is a space that can truly be trusted, so it is normal to keep these kinds of documents.
What are the main functions of this type of application?
VDRs should not be confused with collaboration software, in the name of personal data security, this space is only adapted for reading. You cannot make any edits to the text, copy it, or change it. That is a mandatory feature of every VDR.
In addition, the data room is valued because of its tight control, so you can double protect your documents and prohibit its screenshot, the ability to save to your device and print, and you can also put a watermark on the document.
So all your financial and not only financial documents will be under severe restrictions both for employees of your company and for temporary third parties.
Also, do not forget that the space itself is also reliably protected from external cyber-attacks, which have recently become more and more aggressive. You don’t have to worry about data leakage, because VDR uses modern encryption methods, careful authentication, and automatically ejects the user from the system if he remains passive for a long time.
Another important aspect is that in the data room it is possible to limit the number of IP addresses from which users can log in.