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How many businesses do you think still store their documents in paper form? Very few, because businesses from all sectors have rapidly started shifting to online data storage channels. That is why cloud storage software like virtual data rooms has become trendy in the business world.
Is VDR software just hype? Why are businesses switching to this technology? What are its benefits? A virtual data room is currently one of the most convenient ways to store your business data. In fact, data rooms are much more than data storage platforms, and today’s discussion is about data rooms and their advantages for businesses.
A virtual data room (also known as an electronic data room) is a secure online data repository commonly used for data storage and management purposes.
Businesses, corporations, enterprises, nonprofits, firms, small businesses, and professionals from different fields use data room software for numerous purposes. For instance, you can add multiple users to a virtual data room and use it for data sharing and online communication.
Furthermore, you can use VDR software to connect with your current or potential clients, investors, and business partners. Apart from that, data rooms are often used as virtual deal rooms for business transactions like auditing, fundraising, acquisitions, mergers, asset acquisition, capital investment, and initial public offerings.
You might think, why are virtual data rooms better or different than free online storage platforms? Or why should you pay for storing data in data rooms?
Data rooms make data storing more convenient than any other storage method. Here is why.
Centralized data storage
Storing your business data in different places can kill the productivity or efficiency of your workforce. That’s because when data falls into multiple hands, it becomes complicated for employees to access it easily. If your business documentation is paper-based, it is highly probable that every department has a separate database. Even if you run a small business, there would be a cluster of documents.
Imagine how long it would take for your employees to search a file from such a data repository. Study shows that almost 7.5% of paper documents are lost in organizations, and paper documentation reduces employees’ productivity by 20%.
You can avoid all this by storing your data in a centralized, secure dataroom. VDRs are cloud-based data repositories that allow you to store any type of documents, files, images, videos, or audios in one place.
Data security is another very important factor that differentiates virtual data rooms from free data storage solutions. There are hundreds of free online storage portals, but they don’t have these features;
- Data encryption. The data you upload or share in virtual data rooms can be encrypted. Only the intended user can view and decode the encrypted file.
- Multi-factor authentication. Any secure data room requires its users to go through a multi-step log-in process. For example, a user may have to enter the password and a one-time generated code to access VDR.
- Log-in alert. Whenever a user tries to log in, notification or message is sent to the user’s email address or mobile number. This alerts the user if an unauthorized person tries to break in.
- Device purging. In case a user loses their device connected to the data room, the management can easily remove that device from VDR and related documents in it.
- Data backup. Virtual data room vendors have multi-location servers. They automatically create a backup for every document you upload in your vdr software. Even if a server is damaged or the file is lost, you can still recover it from the backup.
Virtual data room software brings the highest levels of convenience. Most free storage software requires users to upload data in specific formats. Virtual data rooms usually support multiple formats of files.
Secondly, VDRs have built-in file viewers, and you don’t need additional apps to view your documents. Vdr software like Ideals automatically converts any text document into PDF format to give you the best view.
Apart from that, it is super easy to retrieve a file from an electronic data room. You can search a file by its name, keyword, or index number. If you don’t remember the file name, you can use the “full-text search” feature (enter a phrase, sentence, or paragraph), and the VDR will instantly locate the file.
Remote accessibility is a huge benefit of using virtual data room software, especially when businesses have gone global. Using virtual data rooms, you can access your data at any time, from any part of the world. All you need is your mobile phone, tablet, or laptop. Modern vendors have launched dedicated mobile apps, giving you 24/7 access to your data room. That’s not it; you can now download files from your VDR even without the internet. No free data storage software provides this luxury.
Do you know that an average company in the USA spends almost 3% of its total revenue on paper documentation systems? These expenses include the cost of printing, paper, printers, cartridges, ink, folders, file clippers, document binding, courier expenses, etc.
Another study revealed that the average cost of the above-mentioned expenses is $400,000 per year. Yes, on average, a business spends this much amount on paper documentation.
How can you cut these expenses? Of course, by using virtual data room software.
A streamlined data storage and management system is the need of the hour. Businesses look for efficient ways to reduce their expenses while getting the best of their available resources. Datarooms help businesses achieve these targets. Vdr software streamlines the data management process and helps minimize paper costs and other related expenses.
Follow vdrsolutions.org for more information about online data rooms.
Thank you for reading!