When talking about cloud storage it’s fair to say that the security of data is something that has to be maintained at all times. So, it comes as no surprise that companies continue to look at innovating cloud storage technology by making it more secure for modern businesses.
The virtual data room was created out of a necessity to keep online documents safe in the same way a physical storage room creates a barrier to the outside world. While virtual data rooms used to be more of a niche product, nowadays they are everywhere and used by all kinds of businesses.
To get your head around the basics of virtual rooms, the benefits they can bring to businesses, and how best to choose a provider, read on now. Alternatively, take a look at more of our small business articles by heading over to the Small Business page now.
Virtual data room basics
A virtual data room is the current answer for companies that wish to securely store and share any sensitive data. Typically, they are most valuable when confidentiality is a high priority and deal making of some kind is involved.
Any information that’s stored in a virtual room will be the most sensitive a company has, such as intellectual property, trade secrets, or copyrighted material. But, data with a lesser importance will likely remain on a normal cloud storage platform as a virtual room shouldn’t have low-level personnel accessing it.
As mentioned before, physical data rooms are limited in their design and application, albeit relatively secure. But, as companies migrated to the cloud, standard platforms were subjected to breaches which had the potential to severely damage businesses, so the need for virtual rooms was born. However, the state they are in today is the culmination of a long developmental process and they will continue to see innovation from providers looking to take a bigger share of the market.
How can a virtual room benefit businesses?
- Share and store data securely
Virtual rooms are like the Fort Knox of clouds and only allow approved users to gain access to stored documents. Importantly, detailed activity logs are continuously archived so that persons accessing sensitive data can be monitored and reviewed. In addition to this, access rights can have different privilege levels and be granted or revoked at any time.
- Improves collaboration on sensitive projects
Remote access is becoming more important than ever before as many companies will operate out of numerous localities and countries. Virtual rooms allow authorised users to access data remotely, which means collaboration between different internal departments and independent companies can remain secure at all times.
- Due diligence is made easier
Due diligence is an essential process when striking a deal or making a significant purchase as it ensures legal and compliance obligations are met. Virtual data rooms track any changes to documents and keep detailed access logs, which means they can be submitted as proof when required during the due diligence process.
- Costs are greatly reduced
One of the biggest limitations that physical file rooms have is the cost of keeping them maintained. It all adds up when you factor in the electricity for office machines and printers, security personnel, and the cost of office supplies. Thankfully, virtual rooms completely remove these financial burdens and free up valuable capital to be used elsewhere.
- There is no limitation on user space
Physical storage rooms can only hold so many people at any given time but virtual data rooms can have any number of people accessing it at the same time. It’s a huge benefit to be able to have people collaborate on work simultaneously when it comes to big deals and sensitive projects.
How to choose the right virtual data room provider
When thinking about implementing your own virtual room you have to consider your business’ unique requirements. Obviously, scalability is a big factor for any business that’s looking to grow as is costing. But, there are also other factors that need to be considered, such as training, time taken to implement, ease of use, and technical support from your provider.
Most reputable virtual data room providers should have clear information on their pricing structure, data bandwidth allowances, security types, and other notable features. It’s vital that you leave no stone unturned when investigating virtual data room providers as you will be entrusting them with your most valuable information.
Thankfully, there’s a huge amount of competition in this sector and you should be able to take advantage of free trials in order to get a feel for what’s out there on the market.
Are you still worried about finding the perfect virtual data room provider for your business? Contact us now to speak with a member of our team or visit our Small Business page to read more of our blogs.