This is the age of digitalization, and everything is going online. From small businesses to multinational enterprises, business practices have been evolving dramatically. Although this transformation started almost a decade ago, the covid-19 pandemic has “added fuel to the fire.” Businesses are not only operating online, but they now prefer online platforms for data storage and access. That is the reason online data room software is becoming a new normal in almost all industries.
You may have heard about virtual data rooms, also known as VDR providers, or even used them. Data room services are an exceptional addition to business practices, and we are going to enlist the top five benefits of using them. But before that, let’s have a brief introduction to the topic.
What is a virtual data room?
Commonly known with different names, such as electronic data room, a virtual data room is a space where you can store any type of information, documents, or files.
Not only this, with online data room software, a business can share these documents or data with its clients, stakeholders, investors, and management pretty quickly and safely. VDR providers offer impeccable security with their two-way authentication and other similar features.
Best data room providers these days are offering advanced security, communication, and project management features. Apart from storing and sharing documents, virtual data rooms facilitate M&A deals, saving a lot of time and costs. Besides that, VDRs are very common in the healthcare, banking, and education sector.
Top 5 advantages of using online data room software
1. Ease of access
Data room software allows users to access the data anytime from anywhere in the world. Whether you are an investor, stakeholder, client, or employee, you can access the data (depending on your access level) from wherever you want. If the administration panel allows, You can also update, download, and print the documents/files too.
2. Maximum data security
This is surely the core feature of data room services. We all know that business documents are often classified. For instance, clients’ information, financial records, project feasibility reports, employees’ records, etc., are highly confidential documents.
Online data room software can keep these documents under maximum security with the help of different features. For example, you can set a two-way authentication process, giving limited access to different users according to their roles or responsibilities. You also can check the audit logs and instantly get a picture of all the activities in the data room.
3. Cost-efficiency
Some organizations, such as banks, hospitals, schools, etc., need a lot of physical space to document storage. Renting a store or additional space for document storage can be very expensive. If a business is growing or expanding, it will need more and more space for data storage. This will surely bring additional costs.
On the other hand, online data room software can help you save those unnecessary storage expenses. Apart from that, virtual data rooms help you avoid paper and printing expenses as well. You don’t need to print every single document, just the required ones. Besides, you can use that additional space for other purposes.
4. Better control
The finance department in your organization doesn’t necessarily need to have access to all the organizational information. Similarly, your HR department may not have much concern with the company’s financial statements, manufacturing reports, sales records, etc.
Now you would love to restrict the data access for different departments or users according to their needs. Sounds like a problem? Surely not, especially with virtual data rooms. Not only can you set access restrictions, but you can also get a detailed record of users’ activity.
5. Greener and more conscious world
Does that sound awkward or irrelevant? Well, it isn’t because data room services can help us make our planet greener. Papers and trees have a direct relation between them; if you need more paper, you have to cut more trees which will lead to deforestation. We may not realize this, but virtual data rooms can reduce the paper need significantly. Besides, every business has some corporate social responsibilities, so why not start with a greener planet?
Conclusion
Those huge, costly, and difficult-to-maintain physical data rooms are becoming obsolete now. Online data rooms are the future because they are secure, reliable, cost-effective, and easy to access. Believe it or not, using data room software is going to be a must-have in your organization.