What is a Virtual Data Room?

what is a Virtual Data Room

This article will consider the new method for storing information and answer the question: what is a Virtual Data Room.

Virtual Data Room as a tool for sharing and saving information

Information technology is a wide range of software, software, and hardware and technical devices, as well as modern means and systems of transmission information, information exchange, providing operations for collection, accumulation, storage, processing, the transmission of information, and provide access to information resources of local and global computer networks.

Today, the technology of a virtual data room is quite convenient, which allows you to create an online environment for the working process. What used to take several months and cost a few felled trees can now be done in a matter of days. Documents are on the Internet and available from anywhere with an Internet connection. In addition, no one needs to go to the place where they were previously prepared documents, no need to provide personal control over the fact that documents are not taken out, not copied. Cost savings also mean time savings in situations where participants go on a business trip and only then discover on the spot that the required documents are still not available for processing.

Using documents in VDR has greater security guarantees. Participants must register with the VDR by entering their password, and accordingly have different access rights to documents: some can download the document, and some – only read on the screen. This means that the person providing the documents for review will not have to physically monitor according to the movement of documents – the program will take care of everything.

Because documents will never physically leave the room, they cannot be physically lost. Moreover, even after several years, it will be easy to recover data from VDR, as well as check who and when worked with which documents.

VDR and Cloud storage

VDR functionality is often compared to the capabilities of conventional public cloud storage (such as DropboxBusiness), which are cheaper and easier to use. However, these two technologies cannot be called substitutes in the world of IT.

In addition, almost all modern VDRs have two delivery options: “hosted” and “on-premises”, which allows you to store data both at the service provider and within the organization. This is definitely more beneficial for companies that are aware of the value of their data and the amount of risk associated with their leakage.

Thus, VDR is a new milestone in the development of corporate cloud services and one of the most promising business segments in the field of data storage and exchange. In the last five years alone, online VDR services have grown from 5% to 50%, and the owners of the companies providing these services report annual growth of 200% – 300%, and this applies not only growth in the number of users, but also income.

Cloud data centers house physical equipment or hardware (servers, data warehouses, workstations), system software (OS, virtualization and automation tools), tool and application software, equipment management systems, network infrastructure ( Network infrastructure: routers and switches for connecting and combining physical equipment, and systems of engineering support ensure the proper operation of data centers.

Where VDR can be used?

In almost any situation when a company needs to provide simultaneous access to confidential information to several persons:

  • analysis of corporate reporting;
  • creating an archive of documents
  • audit;
  • mergers and acquisitions;
  • search and provision of information for investors;
  • bankruptcy and restructuring;
  • preparation for obtaining certificates for medicines or other scientific developments.