Virtual data rooms, or VDRs, offer the most advanced way to store data online that technology has to offer. While Cloud storage is not a new concept, not all virtual storage is created equal. As a business, it’s not just a matter of keeping potentially embarrassing photos safe. Instead, there are industry regulations and laws on keeping customer and employee data private and secure. The best way to accomplish this is to use a virtual data room.
Security of Your Data
Customers entrust your company with data. Your internal records, including accounting and HR documents, must also be kept safe. Data breaches are simply unacceptable, and therefore, you must take the appropriate measures to prevent them from happening.
As a public company, you have to comply with SEC regulations. Run-of-the-mill cloud storage options don’t have that kind of compliance built in. Also, if there is a data breach and investigations reveal appropriate security measures were not taken, the company might face lawsuits and hefty fines. A virtual data room alleviates these headaches.
With a virtual data room, you can allow third parties specific access to your documents instead of using unsecured emails to send important paperwork and contracts. This extends your data security to client communications. Additionally, all your files are also protected with digital rights management, further preventing unauthorized access.
Ease of Use
Company employees don’t find it difficult to navigate the interface of most VDRs, because it’s easy to use. It’s actually easier to get the job done using VDR than trying to make Cloud storage work right for your purposes. With a virtual data room, you can customize everything to your specific business needs, which improves productivity and streamlines the workflow.
Virtual data rooms don’t have to be more expensive than other online storage solutions. When you consider the extra features and size of storage options, the company might even save money during the switch. How much you pay depends on the amount of storage you need, how many users will access the system, and how many projects or virtual data rooms you require. You can always scale up or down, depending on the company’s current data storage needs.
Tracking Your Data
When you upload a document to the Cloud and share it with someone else, you no longer have control over that document. Anyone can edit it, delete it, or move it, and it’s impossible to tell who performed which action. On the other hand, a virtual data room offers an audit trail, where it tracks your document and all the changes that were made to it. You’ll know exactly who put an addendum on a contract or fixed a typo in one of the files.
Altogether, virtual data rooms offer many advantages over conventional Cloud storage. What may be even more important for your business than security, ease of use, cost, and the ability to track your data is the customization. VDRs like the CapLinked virtual data room can be completely customized to meet the needs of your business, no matter what industry you’re working in. It’s safe to say that every business with online data needs a virtual data room, particularly for interactions involving highly sensitive data, such as M&A compliance, banking, and more.