Protect Information and Business Operations with VDR Software
Recently, there has been a significant development of digital technologies, which could only be influenced by the global economy. At a time when large enterprises have almost completely abandoned the paper-based workflow, digital solutions that securely store and share confidential company information are taking center stage. These tools are virtual data rooms.
So what is a online data room? It is a digital service that acts as a secure online repository and allows all authorized users the ability to precisely control who can use specific data. This is one of the priority functions of VDR technologies, which allows you to effectively use the tool to facilitate important financial transactions. This is especially true in large companies and transactions related to mergers and acquisitions, fundraisings, IPOs and much more.
the global virtual data room market offers many solutions that help deal with huge volumes of structured and unstructured information. Under these conditions, the traditional methods of information management, the analytical solutions, as well as the mechanisms of management of relational databases do not bring the expected result.
Below are the main features of VDR rooms. You will also learn where VDR solutions are used, how to maximize data and operations security when using virtual data rooms.
Features to consider when choosing a VDR solution
If you decide to get a online data room software, you need to pay attention to several aspects that directly impact the effectiveness of your project. Scroll down to learn more about them.
Ease of use
The ideal VDR should be easy to install and manage. Users should learn its features as soon as possible and use them as efficiently as possible. The interface of the modern VDR solution must be simple, intuitive and not overloaded with control buttons.
Cost of services
Typically, virtual data room providers have a tiered payment system depending on the package you purchase. The most common factor that affects pricing is how much information you can upload to storage (measured in megabytes). If you’re going to store mostly text files, you can choose an option that offers pay per MB of data. If you deal with large volumes of information, media files, etc., it is better to choose a resource that offers payment for the number of pages.
Also, be aware that some providers may have hidden charges, for example, for 24/7 service.
In addition, the price may differ depending on the number of users who can simultaneously use the resource.
Level of security offered
The security and confidentiality of information are the cornerstones of the proper functioning of any business.
When choosing data room providers, consider how a specific solution protects against hacker attacks and potential data leaks. It is worth paying attention to tools that offer encryption using a 256-bit key, two-factor authentication and support for global security certificates (for example, ISO 27001). When selecting, independent user reviews and the reputation of the provider should be taken into account.
Where can you use virtual data rooms?
Considering the above, it is clear that data rooms can be used literally in all spheres of activity. However, there is a list of areas where virtual data room solutions are 100% essential.
Private equity and venture capital
Companies that engage in private equity and venture capital investments face a high volume of business transactions that come with data exchanges with different parties. These are often financial transactions that require maximum security and confidentiality.
Law firms share large amounts of data with their clients, employees and stakeholders. With the help of VDR, they can do this safely and as quickly as possible.
Investment activities of banks
With the help of VDRs, the process of concluding a deal is accelerated as much as possible. Mergers and acquisitions require simple, safe and effective due diligence.
How can VDR help protect corporate data and business operations?
Each of the company’s network servers can be the target of a cyberattack. This can happen for several reasons, namely: the presence of open ports used to establish connections and the absence of an appropriate level of monitoring of user activity. Also, one of the reasons may be the lack of all necessary patches.
Therefore, in order to form the most effective fight against cyberattacks, it is necessary to build a flexible and customizable security system. Such a system should provide a search for malware, unauthorized data exchange, analysis of the degree of danger and the type of possible attack/intruder. Additionally, the solution should automatically modify the system based on current security needs.
Below you can see the most modern main measures virtual data room suppliers implement to ensure the security of data and commercial operations:
- using multi-level data access and two-factor user authentication;
- modification of access conditions: customization of resources for data recovery, modification and connection of new nodes to the cloud;
- constant monitoring of all virtual resources, cloud storage operation and creation of detailed performance reports;
- control over the identification and evaluation at the abstraction level of a particular service (this could be the evaluation of bandwidth, user accounts, etc.);
- evaluation of the situation and recording of all incidents (for example, monitoring of the Service Level Agreement according to the established security conditions;
- Development and implementation of security policy.
Speaking of the ideal situation, the full responsibility for the data uploaded in the data room lies with the user of the tool.
At the same time, the electronic data room supplier is responsible for any misrepresentation or unauthorized use of company information.
Photo by Carlos Muza on Unsplash