The virtual data room is a distinctive business software that allows users to securely share confidential documents and files. The main characteristics of modern VDRs include security of data (encryption in transit and at rest multi-factor authentication session timeouts, user permissions that are granular) and document security (watermarking, disabled printing blind view, screen-blocking) and infrastructure security (data center redundancy security, anti-virus protection, 24 hours data recovery).
VDR providers provide a variety of collaboration tools that could positively influence workflows during M&A transactions and other business processes that are complex. Users can make comments and ask questions on documents, assign tasks and keep track of their activities. This feature is essential because it avoids unnecessary delays and miscommunications when making decisions.
Virtual data rooms are less expensive and more user-friendly compared to physical repositories and traditional cloud storage solutions. Users can access documents anytime, from any location and at any time zone. Furthermore, VDRs enable a centralized system for auditing company practices and accounts, which can save time and money.
With a VDR you can search for information quickly and easily thanks to full-text search features such as indexing options and various document management tools (rearrangement drag and drop and renumbering, export to Excel). Additionally, you’ll be able to receive detailed reports on user and document activity as well as when they were visited, by whom and for how long. The largest users of VDRs are life technology and science companies, however all businesses can benefit from secure sharing of sensitive files.