An acute need in data rooms
A secure and convenient space where the confidential corporate documents can be stored and shared is necessary for the execution of deals between companies, organizations, governments, etc. For a considerable amount of time, a physical data room was the only option available to fulfill this demand. A PDR is literally a room where one side exposes hard copies of certain documents while the other side is allowed to work with the files. As deal-makers had no other options they were pretty happy to utilize land-based repositories for secure file sharing. Indeed, face-to-face meetings with every potential partner were not required anymore: those interested in cooperation could have come at the precise time and at the precise place and check all the relevant documents. Hence, virtual data room services allowed businessmen to speed up execution of their projects and to simplify communication with stakeholders.
However, PDRs were not that convenient and safe as they seemed to be from the very beginning. Therefore, a few decades ago a new type of secure data rooms appeared to substitute physical repositories – virtual data rooms. So-called VDRs managed to alter the traditional ways of business conduct and to replace cumbersome deals with a virtual deal.
The best deal rooms – land-based or virtual?
Recently, any data room can be utilized for various purposes. But the initial reason why such rooms have appeared was M&A (due diligence, in particular): to ensure quick and safe data exchange specific repositories were required. Today when we say “deal room” we usually mean online data room as land-based PDRs have become outdated. To understand why virtual data room services have won this competition we should pay attention to a few criteria:
VDRs are accessible 24/7 worldwide. It means that potential room visitors do not have to take business trips and to arrive at the repository personally. Also, the deal is constantly in progress as participants of the project can work with the documents even on-the-go.
• Cost savings
It is cheaper to set up and maintain a VDR. In addition, virtual rooms save money not only for the room owners but also for those who are interested in documents examination as all the travel and accommodation expenses are eliminated.
• Time savings
The room can be set up in a few clicks depending on the amount of information that has to be uploaded. Due to this feature, the deal execution can be started sooner. Also, room visitors are not limited in the access time and can enter the room whenever they want and work with the documents as long as needed. Physical data rooms had strict restrictions in terms of time and all the bidders had to queue in order to get an access to the data.
A VDR’s complex security system usually includes such functions as strong data encryption, firewalls, watermarks, multi-level user verification system, regular backups, etc. On a contrary, PDRs were protected exclusively by security guards.
• Activity tracking and access permissions
New technologies allow VDR administrators to keep an eye on all the actions performed inside the room. Due to this option they can easily detect suspicious behavior or spot the most active and interested visitors. In addition, the room administrators can divide users into permission groups and decide which documents would be accessible for which groups. Hence, one room can be utilized for multiple projects. In the era of physical repositories, a separate room was required for each deal.
With the help of advanced search options, filtering capabilities, a user-friendly interface visitors can navigate the room intuitively. In a few clicks, they can find the required document, edit it, download, etc. Also, in a case users have any problems with the room, a qualified support team is ready to assist them 24/7.
• Fair competition
In a VDR a few users can examine the data concurrently. Hence, queues inherent to physical data rooms bother bidders no longer: they can take their time while working with the data. Also, virtual rooms are characterized by the atmosphere of equality: potential buyers know that no one has privileges of early access.
Evidently, online data rooms fulfill all the duties of land-based repositories and do it better, quicker and safer. The only benefit physical rooms can offer is an opportunity to store tangible samples, products, and other physical objects.
Protect you virtual data with iDeals VDR
Taking into account all the advantages listed above there are no reasons to wonder why VDRs are gaining popularity worldwide. Numerous virtual data room providers appear in the market and offer their services. However, it is important to select the trustworthy and decent VDR provider to ensure safety to confidential corporate data. iDeals data room is among the top-10 virtual platforms that have the perfect reputation among the most meticulous clients. If you visit idealsvdr.com you can check the impressive list of iDeals customers and make sure that this vendor is capable of assisting the representatives of diverse industries. iDeals operates in the VDR market for more than eight years and has an in-depth understanding of the deal-makers’ needs.