Online or virtual data room software is almost a standard or mandatory data management solution in many businesses, especially the financial sector.
Although data room software has been in the market for two decades, its importance has grown significantly, especially during the Covid-19 pandemic. That’s because it has the answers related to all challenges faced in remote working culture.
The important thing here to understand is:
- Why did data rooms become so popular in the business fraternity?
- What types of businesses can use data room software?
- Are data rooms free business solutions?
- What are the benefits of an electronic data room for businesses?
You can find your answers in this guide.
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What is a Virtual Data Room?
Virtual or online data room software is a digital, cloud-based database for companies, firms, professionals, and government institutions used to store, exchange, distribute, and manage their corporate information. Data rooms help to store any type of data in all common formats.
You can store financial documents, administrative data, HR records, marketing plans, and whatnot. That data can be in the form of videos, audio, podcasts, documents, presentations, Excel files, images, etc.
What Made Data Rooms So Popular in the Business World?
The popularity of VDRs comes from different reasons, but the security and multi-dimensional nature of data rooms make them a robust business asset. Virtual data rooms are secure document repositories with modern-day collaboration tools.
You can have online business meetings, brainstorming sessions, online polls, one-to-one conversations, and group chats within your data room.
A secure VDR boasts a multitude of protection features you won’t find in free online data management platforms. VDRs are hosted by certified virtual data room providers that strictly comply with regional and international cyber security standards, including ISO, FINRA, GDPR, FISMA, SOC1, HIPAA, SOC Type II, and GDPR.
VDRs are primarily famous for their role in dealmaking. The financial industry regularly employs secure VDRs for mergers, acquisitions, loan syndications, corporate consolidations, fundraising, and real estate transactions.
You can read more about virtual data room features at:https://www.idealsvdr.com/virtual-data-room-features/.
Which Businesses Use Virtual Data Rooms?
Virtual data room consumption is not limited to one or a few industries. VDRs are applicable in all types of businesses. Major consumers of data rooms include:
- Private equity firms
- Insurance companies, investment banks, crowdfunding companies, and other financial institutions
- Law firms and attorneys
- Real estate firms and companies
- IT firms
- Pharmaceutical companies
- Educational institutions
- Healthcare sector
- R&D firms
- Energy and oil sector
- Real estate companies
- Fundraisers
Are Virtual Data Rooms Free?
Virtual data room services are paid in most cases; very few vendors offer free services. Moreover, the free versions have limited functionality. Similarly, many data room vendors provide free trials for up to 30 days.
It allows professionals and businesses to get enough exposure and helps them decide whether they need paid services or not.
Here are some virtual data room vendors that offer free trials or versions:
- iDeals virtual data rooms provide free trials for up to 30 days. The paid versions are enriched with tons of amazing security, communication, and data management features.
- Google Workspace has a free version.
- Koofr is a Slovenia-based virtual data room that allows you to store up to 2 GB of data free.
- Ftopia also allows three rooms, ten users, and 5 GB of data for free.
- Box has a free version and also offers a free trial for its paid services.
- DocSend provides a free trial and has a free version as well.
Other virtual data rooms with free versions include Clinked, Ansarada, and OneDrive.
However, be noted that many of these free virtual data rooms have fewer security features and may not be suitable for sensitive documents and long-term use.
What are the Benefits of Virtual Data Rooms for Businesses?
1. Complete Ata Security
Security is the biggest benefit of virtual data room technology, but only certified data room vendors can guarantee it.
The most notable security features in VDRs include multi-location data servers, two-factor authentication, high uptime, strong data encryption (256-bit SSL), remote device purging, customizable NDAs, etc.
2. Controlled Data Access and Sharing
What differentiates virtual data rooms from free online storage solutions is the control you have over your data. VDRs allow you to define user access roles to ensure that users can access only specified sections and files in the VDR.
Notable document security features include digital watermarks, file tracker, and document access revocation.
3. Safer Communication
Virtual data rooms are not just about data management; they have a full range of modern-day communication tools. You can communicate in groups or individually, arrange audio and video conferences or seminars, do Q&A sessions, and create live polls and chat threads.
Other notable benefits include remote accessibility, operating system integration, faster deal-making, and cost-effectiveness.
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Final Words
Data rooms are digital data management solutions that allow companies and professionals to streamline their data management process.
Online data rooms are usually paid services. However, some vendors have free versions, including Box, Google Workspace, Clinked, Ansarada, Koofr, Ftopia, and iDeals.
Consider using a data room if you have never used it before – and reap the numerous benefits for your business!
