Despite the widespread adoption of today’s technologies and unique solutions, some companies still prefer to use non-business servers and platforms to store and share their documents. Platforms such as email or cloud servers for file sharing are not suitable for corporate-level privacy, for this purpose, wise users use virtual data rooms. VDRs, unlike Generic File Sharing Services, have the right level of security and usage efficiency, and in this article, we will break down why companies should use VDRs for their corporate needs.
VDR vs. Generic File Sharing Services
Some people mistakenly think that shared document sharing programs like Box or Google Drive are cheaper or free alternatives to virtual data rooms, but that’s not true.
VDR provides truly professional features that make your transaction go without any delays or problems, while shared file-sharing programs make the process much more complicated and confusing, and much less secure as well.
VDR is easy to navigate and was created to exchange thousands of files. These spaces are easy to use, the permissions features help avoid mistakenly sending documents to the wrong person, administrators can keep track of all activity within the space, and VDRs provide them with automatic reports so that administrators can stay informed, keep track of all policies and document security.
Shared document exchange services also offer some document resolution features, but they are rather flat and unreliable because the servers are not focused on business activities. Data leakage from shared programs is unfortunately quite common, while VDRs provide international certifications of compliance with all security standards such as GDPR, SOC 2, and HIPAA.
What can VDRs offer?
Below we will provide the main capabilities that VDRs have for transactions and other complex processes, including verification, litigation, IPOs, etc.
- Security
Virtual data rooms have a level of security equal to that of the military or banking institutions, which is why it is considered one of the best solutions for document storage and exchange that no one can still match. An investment in VDRs cannot be in vain, as it will prevent global costs that would have occurred if sensitive data had been leaked. VDRs offer their customers strong data encryption methods, and dual authentication, continuous backups, and remote document destruction, but that’s not all. Detailed permissions allow you to prohibit copying, printing, forwarding, and downloading documents, and can also prohibit its partial visibility. Watermarks allow the document to be tracked even outside the space.
- Easy organization
Your company has to deal with a lot of documents during transactions, they need to provide access to them to outside users, and therefore, in addition to being secure, they also need to be well-structured and numbered. This will allow invited users to easily adapt to the space and verification will go much faster and more efficiently.
To create this quality structure you need to put minimal effort, as VDR allows mass uploading while providing automatic formatting, or it simply supports multiple file types, automatic indexing, and a smart document search and version control feature.
- Easy to use
Data rooms are very flexible and easy to use. They provide access to information from any device and operating system. You can do what you need to do from anywhere, which also speeds up the transaction process.