Big Data

Advantages of Virtual Data Rooms for Business Deals

Advantages of Virtual Data Rooms for Business Deals

The virtual data room (VDR) is the latest technology in the form of online storage, which is also used for document distribution. It is usually utilized during the pre-merger or acquisition due diligence process to review, exchange and disclose company records. This software is increasingly replacing the physical data rooms traditionally used for document disclosure and sharing. But what exactly is the reason for their popularity? In this article, you will find a clear answer to this question.

We will look at the most essential advantages that organizations see in front of them when buying virtual data rooms:

  • Security of the highest level
  • Simple and convenient use
  • Software versatility

After analyzing each item, you will no longer have doubts about purchasing this software.

Security of the highest level

The main reason for using virtual data rooms is to store and share documents securely and efficiently between company employees and employees of several different firms.

These aspects are easily achievable thanks to:

  • Adding watermarks. One of the great options for protecting sensitive documents. They are quickly added, can be personalized, and protect against theft.
  • Protective nets. Accessibility features for limiting the viewing area of ​​a document. Automatically activated in the system and do not allow, for example, a person passing by to read or photograph a confidential document or make a screen recording.
  • Invisible marking. The technology works in such a way that digital steganographic changes occur at the document level, which allows you to create thousands of copies of the same original document without visual distortion for the user. The forensic module built into such unique VDRs will allow you to figure out the culprit of the leak if someone decides to download a document from the data room, take a screenshot and post it online, or even just take a photo of the screen with confidential information on it.

Data rooms for due diligence use the DRM protection component, which is a full-fledged analog of AD RMS. It allows you to protect data throughout the life of the document, including after it is unloaded from the virtual data room.

Also read: MFT: What It Is And How It Fits Into Your Cybersecurity

Simple and convenient use

One of the main advantages of virtual data rooms compared to their predecessors is that they are accessible to any user. A virtual server is easy to manage even without special knowledge and skills, so there is no need for additional staff training.

This, in turn, means that users can enjoy the convenience of the system, which includes:

  • Increase performance and power. Today’s virtual data rooms have enough power and storage to meet any need. During utilization of data room software, the client gets the opportunity to distribute resources in different directions, use the mail server, cloud storage, install their own programs. Also, the backup system involved here eliminates the possibility of information loss and reduces the risk of business process downtime in the event of a system failure. Likewise worth mentioning is the possible circumvention of the size limit on mail attachments and a significant reduction in file size.
  • Make a simple installation. After purchasing or receiving a virtual data room, the client can use it instantly without purchasing or installing add-ons. It gets a single web-based interface to manage all the features, including data backup, data protection on mobile devices, document sharing, detailed reports on scheduled corporate data usage, and much more.
  • Reduce costs. Firstly, a virtual data room, as a rule, does not require significant resources for implementation, since only a computer is the necessary equipment for the client. So the client saves on the purchase of additional physical equipment. Secondly, the main savings are noticeable on the maintenance of virtual data rooms in comparison with physical ones of the same parameters. For example, for repair and maintenance, the specialists of the provider company do not even have to visit the office to fix certain problems.

Software versatility

While people usually associate the use of secure data rooms with the financial services sector, many industries are now using it in their daily operations to meet their information collection and control needs. The fact is that in today’s business conditions, the foremost thing that connects all corporations is the need for quality data.

Also read: What Is Enterprise Data Warehouse A Short Guide?

There are a number of industries that utilize this software, including:

  1. Technology. VDRs allow the largest technology companies to share information between teams scattered around the world to help spread ideas within organizations.
  2. Investment banking. Investment banking processes such as IPOs, capital raising, and M&A can require huge amounts of information to be exchanged, for which VDR is ideal.
  3. Accounting and audit firms. Companies can transfer audit reports and results with clients through a secure platform. ‍
  4. Private equity & venture capital. These corporations usually analyze several transactions at the same time, bringing to the company a huge amount of data that requires organization. Not surprisingly, many of these companies rely on VDRs to securely organize this data so it’s always on top of the process, no matter how many deals they have in the pipeline.
  5. Business agents. VDR provides an accessible means to transmit trade and close information.
  6. Real Estate. Land and housing transactions require the exchange of a lot of documents. A VDR will come in handy no matter what real estate industry you are studying.
  7. Legal industry. Electronic data rooms have appeared, instead of ordinary file cabinets, simplifying the exchange of documents for any legal proceedings.


The most vital advantage that you get with a virtual data room is complete control over security and use. Neither FTP nor public storage will be able to provide you with such an opportunity. Using DRM protection technology, you have the power to revoke the right to access a document even after it is already outside the corporate network. You can learn more about the functionality of the software during the free trial period. And to find out more about data room providers, we suggest you read

Written by
Aiden Nathan

Aiden Nathan is vice growth manager of The Tech Trend. He is passionate about the applying cutting edge technology to operate the built environment more sustainably.

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