There are hundreds of online document repositories available on the internet, yet the global business sector is switching to online data room software. That’s because online data rooms are not just ordinary data repositories, but they are diverse solutions necessary for running a business in the current era.
Virtual data room software not only provides high-level data security but automates several other processes. You can see the application of data room software in M&A and various other business sectors.
But why do modern-day businesses prefer virtual data room software? What is it used for? What are the benefits of an electronic data room? You can find all the answers in this guide.
What is data room software?
Data room software is essentially an online document repository for businesses, professionals, nonprofit organizations, government agencies, or any other professional or business entity that has data storage or management needs.
Virtual data rooms allow you to store, share, exchange, and automate your business data management process. Unlike many other data storage platforms, you can edit, view, overwrite, annotate, and share documents with other users in the data room; VDRs do not restrict external data sharing as well.
Apart from being a secure data storage facility, virtual data room software is a highly trusted online workspace that ensures easy collaboration between investors, stakeholders, employees, directors, owners, managers, and other concerned business personnel.
Lastly but most importantly, data room software is an online deal-making platform globally used by the financial and corporate sector for mergers, acquisitions, capital raising, clinical trials, real estate trades, asset portfolio management, and other similar transactions.
Top virtual data room vendors in 2022
Although data room technology brings a lot to your business, it is important to note that all the data rooms do not have the same level of security, ease of use, customer support, utility, user intuitiveness, and diversity.
Here are some of the best data rooms in the market that not only have won customers’ trust but several awards as well.
- iDeals data rooms
- Ansarada virtual data rooms
- Firmex deal room
- Merrill data room
- Intralinks deal room
- SecureDocs virtual data room
- Fordata virtual data room
- ShareVault data room
- Digify data rooms
You can also visit https://data-room-software.org/best-virtual-data-rooms-comparison/ if you are looking for in-depth virtual data room reviews.
Who can use virtual data room software?
VDRs are contemporary business solutions that have extended their reach to almost every major business sector, including:
- The financial sector
- Legal industry
- Oil and energy sector
- Real estate industry
- IT industry
- Service provision industry
- Healthcare industry
- Education sector
- Pharmaceutical companies
What is online data room software used for?
Online data rooms are employed differently in various business industries. Here are some most common uses of an electronic data room:
- Mergers and Acquisitions (M&As)
- Board communications
- Fundraising/capital raising
- Real estate portfolio management, asset lifecycle management, and commercial transactions
- Clinical trials
- Initial public offerings (IPOs)
- Risk management
- Project bidding
- Project management
- Due diligence
- Data storage and sharing
Also read: Virtual Data Room vs. Cloud Storage
What are the benefits of virtual data room software?
1. Business data security
The first and indeed the most important benefit of virtual data rooms is the level of security they provide to your business data. Virtual data rooms can be differentiated because of their numerous security layers for data protection which you cannot find in many data storage platforms.
If it is about restricting unauthorized users, you can use the two-step verification. You can limit user access in your VDR to whatever extent you want and use fence view or view only mode to prevent any document from being saved, edited, downloaded, photographed, scanned, or printed. If you have accidentally sent a document to any user, you can revoke access or delete that document.
2. Remote access
If you are using online data room software, you don’t need to visit your business premises to retrieve any file you need.
In fact, not having a laptop or desktop is not a problem anymore. All you need is a mobile and an internet connection, and your entire business data will be at your fingertips, accessible from anywhere. What’s more, many data room vendors allow you to retrieve data stored in the VDR in offline mode.
3. Speedy online communication
Businesses now don’t need separate communication and data storage tools because VDRs provide both. Any high-end data room software allows one-to-one conversations, group chats, public post threads, Q&A modules, online polls, and HD video and audio conferencing tools.
4. Reduced business expenses
A paperless solution, virtual data room software reduces your administrative expenses by a huge margin. The first thing data room software does is that it minimizes your paper and printing costs. You can switch to work-from-home or hybrid working structures, thus reducing your utility bills, traveling allowances, meeting expenses, etc.
Virtual data rooms have gone beyond simple data storage features. This is why they are regularly employed for project management, asset portfolio management, mergers, acquisitions, real estate transactions, joint ventures, partnerships, board communications, and other important undertakings.