A virtual data room might be the last thing on your mind with generic document sharing services like Dropbox and Google Drive being in the forefront, however, there are valid reasons why you should consider switching platforms. As threats to your cyber security increase in tenacity so too should your awareness of what you can do to prevent being targeted for your current solution’s vulnerabilities. From enhanced security measures to heightened user convenience, it is evident why virtual data rooms are taking over and why you should take notice. This article will discuss a few of the ways a VDR can elevate your deal performance, secure your personal information and provide you a professional appearance that will secure the confidence of your clients.
The most prominent reason why businesses are switching over from generic document sharing services to virtual data rooms is enhanced security. While Dropbox and Google drive are sufficient if you want to share family vacation photos or exchange notes for small scale projects, they do not offer the level of security that a VDR does for working on high-revenue deals with confidential data. If the 2012 Dropbox leak is any indication of what can happen to your private information, then it’s no wonder why businesses are looking toward software with multiple features that promote security and control over who sees what information and when.
Not only do VDRs offer features such as watermarking and disabling print and download, but they also have enhanced encryption for data at rest and in transit as well as multiple firewalls and the same data centres as major financial institutions. This ensures that there are multiple backups of data and that they are impervious in a disaster scenario. VDRs are constantly assessing the risks that can threaten your data and adapting to ensure that it remains secure.
A Professional Look
As mentioned above, a virtual data room has an added look of professionalism to it than generic document sharing services or just email. When working with financial institutions, they allow you to move through their firewall effortlessly, making the already arduous due diligence process much easier. They also instill a sense of confidence in your clients when they know that the information they are providing won’t leave the data room unless they want it to. It is important to understand that a document sharing service does not only affect you, but can also affect the security of any invited users collaborating within it.
When it comes to already complicated deals and projects, the last thing you would want is an equally complicated platform to navigate through. Making the switch to a virtual data room can save you a lot of time and energy in learning how to work the platform and direct it toward actually collaborating and sharing necessary information with third parties. Staple features such as Q&A can help users communicate effectively with each other during deals, storing questions and answers in a more organized manner than email communication would. Drag and drop uploads as well as bulk uploading and downloading are a few more time saving features, especially for bigger projects with high volumes of data.
Additionally, virtual data room providers offer a higher level of client support than general document sharing services do. For any new clients that might be having difficulty understanding the various features, they offer demos and 24/7/365 support with a knowledgeable client representative. Understanding the details of the platform you are using is important in being able to use it to its full potential, and VDRs are intuitive spaces designed to make your experience easier.
It might seem that Dropbox and Google Drive are comparable options to virtual data rooms, however, there are many distinct differences in the software of these platforms. Whereas generic document sharing services are great for sharing vacation photos with friends and family, VDRs are specifically designed for more complex and time consuming projects, making the processes much easier. With detailed permission settings and enhanced security, it’s no wonder why so many entrepreneurs are making the switch to a platform that is much more equipped to handle deals and facilitate smooth and effective due diligence.
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