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Why Your Web Business Needs Virtual Data Rooms

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Harry Trott
March 07, 2017

Harry Trott
Harry Trott has written 9 articles for WebKnowHow.
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If you’re a growing technology business, here’s a fact to blow your mind – approximately 90% of the world’s data was created in the last two years! This explosion in data volumes alongside rapid growth in businesses has necessitated the use of virtual data rooms (VDRs).

A virtual data room is essentially a virtual space where critical organizational documents can be stored. They allow users to invite other users to a data “room” where documents can be uploaded, saved and shared. One can even printout physical copies if required. In an age where business consolidations and mergers are everyday news, VDRs have proven to be incredibly resourceful.

The pertinent question for you, however, is if your technology business requires VDRs. In order to keep up with the pace of innovation and growth in the technology industry, VDRs help companies in situations involving financial transactions such as mergers and acquisitions, raising venture capital, audits and compliance, IPO and so on.

If your organization is seeking solutions to the following requirements, it might be time to contact a VDR provider.

Secure data storage

Physical data storage rooms can come with a fair number of drawbacks. One instance of a natural or man-made disaster can endanger sensitive information and business longevity. In comparison, VDRs are fairly resistant to such disasters, can be secured with an access code and additionally can be expandable as data volumes continue to grow.

Enhanced collaboration

Technology business and global collaborations are practically synonymous today. Organizations that don’t place emphasis on making partnerships with global counterparts easier are often regarded poorly. The use of VDRs takes the complications of such long-distance associations out of the equation. All you have to do is customize your data room, invite partners/vendors/customers to the room and share relevant information and documents. The rest is smooth sailing.

Data security

Any technology organization knows that safeguarding data is mandatory for survival and growth. Securing documents is a powerful feature of VDRs that can be applied across organizations. From capabilities such as addition of watermarks to setting expiration periods on documents and restricting access, sensitive information can be protected in a comprehensive manner.

Customizable solutions
VDR solutions are customizable to suit the industry you’re in as well as your organization’s unique requirements. The likelihood of data volumes growing is also addressed by the capability of expansion.

Process efficiency

Owing to the nature of a VDR’s features, multiple departments within your organization could stand to benefit from it. HR, accounting and sales are just a few functions that see a significant improvement in efficiency. Everyday administrative tasks can be streamlined much more easily.

There are plenty of VDR providers from which your company can choose. While your VDR provider shouldn’t charge exorbitantly, keep in mind that the purchase needs to be approached like an investment that will eventually pay off in the form of cost efficiencies. Look for providers who offer free trials before purchase. It might also be worthwhile exploring their customer service practices to see how they can support your company’s requirements.

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