Virtual data rooms began to appear in the seventies of the last century. At that time, these were just sketches for modern services of this type. The most significant VDR technologies have evolved since the early 2000s.
Now VDRs offer extensive functionality that may interest both small companies and significant holdings.
Basic functions related to security
First, virtual data rooms are positioned as safe storage for your files. To do this, several various functions are configured here:
- Watermarks. This means that the document reflects information about the company, the name of the person who uploaded the document, and the time it was uploaded. Thus, information leakage is less likely.
- Self-destructing documents. Some files may be destroyed immediately after viewing, or access to them may be closed.
- 256-bit encryption. Today it is the most powerful technology that provides secure data storage and transmission. As a result, it is unlikely that an attacker will be able to get them unchanged.
- Flexible access settings. You can change the access rights to documents flexibly so that certain company employees cannot look into other sections.
- Regularly scan computers for viruses. Virus programs can steal files and disrupt the stability of the system. This will not happen in virtual data rooms, as antivirus applications protect them.
Data rooms usually brag about their security certifications as they are approved by international organizations and must meet strict and specific criteria.
Analytics and reports
Another point in the functionality of virtual data rooms is analytics. Some developers are integrating artificial intelligence into their software to do this. The technology allows you to conduct internal audits, create reports on the work of the data room, control document versions, and send notifications to administrators.
Virtual data rooms have the tools you need to host remote team meetings. The company’s management can discuss pressing issues according to a pre-prepared plan, hold voting, and approve the minutes of meetings. In addition, many processes in the data rooms are automated and do not require the intervention of moderators.
Everything for big deals
Suppose you have a large company that can go through mergers and acquisitions, integrations, sales, and entry into investment markets. In that case, VDR technology is needed to prepare for a big deal.
The functionality allows you to add documents invite experts from the second side while they have limited access to company files. Lawyers, industry experts, economists can get acquainted with the information, leave questions and comments, and require additional materials to be uploaded.
In the virtual data room, you can also flexibly customize the design, upload files in large batches, move or drag files to where they are needed, link documents, search.
Most virtual data rooms are equipped with various integrated tools from leading software vendors. For example, there may be integrations with Microsoft Office, Slack, coding programs, etc.