Before the advent of internet and cloud technology, documents and other files had to be stored in physical data rooms that required staff, couriers, abundant paper supplies, and other costs. Besides such financial burdens, business people using physical data rooms also had to travel to the storage location site, and then spend time sorting through and reviewing copious stacks of paperwork. What a costly hassle!
Today, though, such expenses, wasted time, and inefficient practices can be avoided, and the need for physical data storage eliminated, with the use of Virtual Data Rooms. In fact, a 2012 report by IBISWorld calculated growth in the Virtual Data Room industry at more than 17% per year, the result of increasing technological advancement and our global economy’s for more online services.
In Virtual Data Rooms, or VDRs, documents and other files are stored securely on an online server, where multiple users can easily and efficiently access, share, and manage vital information simultaneously, without the risk of theft or information loss.
Virtual Data Rooms offer many specific benefits to businesses and users, from saving money to increased productivity and efficiency. VDRs can help you and your business:
- Save money by reducing paper waste, travel expenses, and human resource costs
- Protect your data against damage or loss with secure, online backup
- Eliminate the need for couriers or document management staff
- Setup and manage information storage quickly and easily
- Safeguard sensitive and critical data from theft or piracy by storing it on an online server
- Control information by setting administrative user permissions and restrictions
- Conserve employee time by enabling information access from the office
- Enjoy more efficient and timely transferring and sharing of documents
- Access your files all day, every day – 24/7
Virtual Data Rooms offer secure document storage solutions that have been primarily used for the disclosure and sharing of documents that may be sensitive or confidential in nature, such as in capital transactions like mergers and acquisitions. Other businesses requiring legal due diligence practices or secure document storage can also benefit greatly from VDRs, including Human Resources departments that deal often with highly sensitive or personal information. Even Marketing, IT, Purchasing, and other financial departments can use VDRs to securely store and share files like estimates, contracts, design plans, and fiscal reports.
Here are just a few professional fields and needs for which Virtual Data Rooms are ideal tools:
Corporations– In our global economy, VDRs provides a secure, central storage site for sensitive documents and other information used in corporate dealings, such as contracts, legal files, and financial records, from which they can be easily accessed by parties and workforces often located worldwide.
Human Resources – Employee records, management data, and other confidential HR information can be stored securely in a central location like a VDR that allows authorized workers at different sites to access the data easily at any time.
Bankruptcy – Financial restructuring deals require the timeliness, organization, and due diligence, particularly with filings and other reports that might be mandated by regulatory bodies or courts, that secure, online VDR data storage can enable.
Research – VDRs provide a secure, reliable, and protected storage site for clinical trial discoveries and records, as well as legal, licensing, and subject data, used in the life sciences and other research fields.
Finance and Investments – When compared to a paper-based system, the greater transparency, easier tracking, and more efficient organization of documents offered by VDRs is extremely useful during investment transactions and financial consultations.
Accounting – The need for audit trails in the global accounting industry requires a solution like VDRs to facilitate easy sharing, tracking, and management of important financial records, receipts, and other bookkeeping files.
Marketing – Professionals in the marketing industry can use VDRs to store strategy reports, design mockups, and operational budgets in a secure, central location where all parties can easily access them.
Real Estate – Because VDRs make file access and permissions easy to manage, they save valuable time and money for real estate professionals whose dealings can require sharing hundreds of documents, such as property documentation and loan files, with multiple parties.
IT Services – VDRs are a good place for IT industry professionals, often working in teams, to store estimates, design plans, and critical correspondence on a secure online server that makes sharing easy.
Law – Legal professionals can easily manage countless confidential files with VDR storage, such as discovery documents, trial transcripts, and client contracts, helping ensure due diligence while also saving time and money.
… and the list continues. In fact, “virtually” every industry can use Virtual Data Room storage to streamline data management and file sharing while saving time and money associated with the physical data rooms of yesterday.