Why should you move your business or personal data to virtual data rooms when you have so many other options? That is a legitimate question because even right now, there are many free online data storage and sharing tools, so why should businesses or people turn to virtual data room solutions?
There are many major and minor reasons to move your data to data room software technology. However, the below-mentioned are the most common reasons to use data rooms.
Top 5 reasons why you need a virtual data room
1. Store all your data in one place
A central data repository is vital for businesses and even professionals. Any corporation, organization, or firm has further classification in the form of departments or sections. Traditionally, every section or department in an organization has separate databases. For example, marketing, finance, tax, HRM, IT department, will all have different databases with their sensitive data. And when that data is stored in different places, navigating through it becomes difficult.
Decentralized databases mean inter-department data sharing will be restricted. Moreover, the investors, stakeholders, and board members of a company will have to turn to different officials before they get the documents they need. All of this is not only time-consuming and causes frustration, but it kills productivity as well.
On the contrary, when you or your business has central data storage like an electronic data room, you can upload all your data to one place. Then, you can add your employees to their respective data rooms so they can arrange their department documentation and let their teammates access it easily in one place. This will make it easier for potential investors to find and access the necessary data as well.
2. Share data faster and more efficiently
Even to date, many businesses and professionals use email service providers as a medium to share documents and formal information. However, these days it has certain limitations.
First of all, you cannot share a file larger than 25MB via email service; you have to move to other platforms like Google Drive or DropBox. In simple words, you need a different source to share large files.
Also, the maximum number of files you can upload is also limited, as one email can contain no more than 25MB of data. It means you will have to share files via multiple emails, which surely isn't a time-saving approach.
And last but not least, email is no longer considered secure. In the Yahoo data breach, the data of 500 million users was stolen. And up to these days, email stays incredibly sensitive to phishing attacks and other means of data theft.
Luckily, online data room software is the exact opposite of email in terms of protection, size, or amount of data to be shared. You can share hundreds of files with as many users as you want, without any limitations in size.
And best of all, data room vendors guarantee military-grade security with 256-bit encryption, two-factor authentication, redaction, fence view, secure spreadsheet view, and many other data protection features.
3. Get more control over your data
Apart from fast data sharing and central data storage, data room services provide complete control over how you want users to share or access data. As a VDR administrator, you can define the roles and access levels of the users in your data room software. Here is how data rooms allow you to control the flow of data:
- Any user or a group of users can be restrained from accessing any folder, document, or even page in any file.
- Any user or a group of users can be limited from saving, editing, printing, sharing, altering, downloading, or printing a document.
- View Only or Fence View mode can be activated on any document so that the users can only view the document and cannot perform any other action.
- Any document can be deleted or purged even if other users have accessed it.
- The Administrator or file owner can revoke access to a document anytime.
- Any suspicious device can be removed from the VDR (and the data inside it can be purged).
None of the above-mentioned features can be found in free data sharing alternatives.
4. Make communication centralized
How many data management platforms do you think have the latest communication tools? Email services don't have a video calling feature, and neither Dropbox or Google Drive. Live polls or voting tools are not even under consideration.
However, you get all of it in a virtual data room. You can plan and arrange your business meetings within the data room software. Users in your data room can engage in group or personal conversations. You can create live polls and Q&A sessions. In simple words, data rooms allow data sharing and mass communication at the same time.
5. Reduce costs
Even with all the futuristic features listed above, virtual data rooms stay way more economical than many other traditional data management tools.
Firstly, data room vendors come with multiple pricing plans for individuals, businesses, and enterprises. And secondly, they minimize one of your most significant administrative expenses — paper and printing costs. Businesses can save thousands of dollars every year just by cutting their printing expenses.
Some highly economical and best data rooms include Ansarada, iDeals, Digify, Box, and SecureDocs. But conducting your own comparison is a must for deciding what solution is best for you.
Moving your business data to virtual data rooms benefits you in many ways. You can access your documents remotely, share files quickly, communicate fast and efficiently, and reduce your administrative expenses — while getting better control, organization, and traceability of your sensitive data.