Virtual Data Rooms

Virtual Data Rooms are secure online spaces that act as a company’s repository for its sensitive business data. They allow users to securely share confidential data with clients, investors and company leadership over the internet in a controlled manner. And this is the main reason why corporates seriously consider using a VDR instead of regular cloud storage tools.

Data security issues can make or break corporate deals, reputations or finances and affect a company’s fortunes. Therefore, it’s always important to carefully choose a good VDR. Normally the criteria on which the quality of a VDR is rated by most companies are Ease of Use, Ease of Access, Control, Reporting, Support, Security, In-room Communication and Pricing.

While cost is a major factor for any company, Investors or Buyers are more concerned about the Security of the business data and their deals, hence they give top most priority to security in a M&A deal. So, when you approach them on a low cost VDR or a free drive for an M&A deal, it reflects poorly on you. Your investors and buyers immediately become vary of you as they think that your priority is cost cutting and not the safety and security of their business data and deal offers. It is immediately construed that you are prepared to compromise on the security aspect of their valuable data as against little or negligible price benefit. This doesn’t augur well for your corporate reputation.

VDR’s (Virtual data room)

Most investors or buyers prefer VDR’s that are considered extremely secure, more specifically with ISO 27081 certification. This is because such data room providers take comprehensive, multi-faceted security measures with controls, reporting and procedures that keep all their data and operations safe, against potential risks and threats. Besides they offer better document management and secure data management; grant access to multiple parties at the same time; support mobile devices; permit uploading of high amount of data; have precise searching functionality.

VDRs security features include physical security with continuous data back-up and more up time; application security with encryption methods, digital watermarking, data siloing in private cloud servers, multi-factor authentication, accident redemption; infrastructure security with data encryption, storing data on remote data centres; data centre certifications that include various certifications like SOC2, FINRA, ISO 9001 / ISO 27001 and more; auditing and compliance activity with audit logs for any action in a data room.

As organizations depend increasingly on the information systems that coordinate transactions, manage operations and aid the pursuit of new market opportunities, the role of technology in business becomes even more critical.” Thus, a good VDR for secure data sharing can help your business succeed. Therefore, you should always choose a good VDR over a free cloud drive while approaching your investors. It reflects your concern about the security and sanctity of valuable business data and deals.