The virtual data room (VDR) is a special cloud solution. Companies can use it to digitally send or store their confidential files. The VDR differs from a physical data room. Documents are available there at a fixed location, for example in paper form.
However, the use of VDRs is increasing. Global economic markets and the digitization of processes can be cited as reasons. Companies are required to provide their paper documents in digital form. You can no longer avoid a VDR these days. Internationally active companies in particular benefit from this in the case of overarching projects. Documents with sensitive and time-critical information are accessible to multiple participants through VDRs.
A VDR can be reached in two different ways. One option is access via the web browser. The other possibility is a special VDR application. Calling up the files in the cloud in the browser offers a quick overview of all documents. The content view is very similar to the structure of a local hard drive.
In order to edit confidential files, they often have to be downloaded first. An upload to the cloud is then required. If you are not familiar with working in online data rooms, you can make mistakes here. These have a negative effect on the security of data or operational work processes.
As a special VDR application, TeamDrive mirrors the data room and makes it look like a local folder. So the folder is either replicated locally or synced virtually.
Applications of VDRs
Working with confidential documents is part of everyday life in many companies. VDRs are important for companies that have previously carried out transactions and the management of documents in paper form. These include companies from the financial sector, the real estate industry and in the area of mergers & acquisitions (M&A). Syndicating loans or private equity are concrete use cases based on virtual or electronic data rooms.
The focus is always on transactions involving documents containing sensitive information. VDRs are revolutionizing work in these industries. The digitization of documents conserves resources and saves a lot of time. Depending on the project, everyone involved can access important files at the same time. In the following we take a closer look at three typical application scenarios for VDRs.
VDRs for Real Estate Documentation
Project managers manage many documents in real estate projects. Construction plans or documentation must be accessible to different actors. Selected partners can call up updated documents in the course of negotiations in digital data rooms. Information is thus available centrally and can be found quickly. After the completion of a project, the content remains stored in the digital archive for later access.
VDRs for Communication in the Board
Companies are increasingly managed independently of location. Managers need a safe place for communication at senior management or board level. This room must ensure a high level of security and confidentiality of data. Compliance requirements for internal communication make the use of digital data rooms necessary. The data rooms ensure fast, secure and location-independent access to confidential files. This includes annual reports, balance sheets or discussion papers on PR work. An advantage of VDRs in the company is the option to involve external people. In a company, these are consultants or supervisory board members.
VDRs For Mergers & Acquisitions
Selling a business involves both seller and buyer. The process between the first check and the conclusion of the purchase is complex. Deadlines also create time pressure. Here, a secure data room facilitates the whole process. Individual folders or documents can be provided with different rights for reading, deleting or editing. In contrast to a physical data room, only certain content can be called up. It is also not possible to leave the data room without mutual consent.
Safety First: Secure Data In Cloud Storage
A software that offers a virtual space for data management has one main task. It efficiently manages files and keeps them safe. If necessary, the tool enables the transaction of documents with other users.
Users often share sensitive content in these data rooms. Data security is therefore an absolute priority in VDR applications. The following functions reliably guarantee this protection:
- authentication procedures;
- secure login;
- dynamic watermarks;
- temporary or local access.
Many companies and business partners underestimate the handling of confidential information. A loss of such data not only leads to the end of the business relationship. In the worst case, far-reaching legal consequences threaten.
For this reason, data security is a mandatory requirement for VDRs. Therefore, pay attention to this property when choosing the right provider.
Under the motto “Security by Design”, there is raised on automatic end-to-end encryption, which sets it apart from other providers. Full encryption guarantees the security of confidential data in your own network and beyond networks.