Privacy is the largest concern of the last half of the 2010 decade, and it isn’t slowing down in the 2020s. Not everyone can make a SCIF, or Sensitive Compartmented Information Facility, like the US government.
The next best thing, and much more accessible from anywhere in the world, are virtual data rooms. It isn’t restricted to your company’s intranet, making it versatile like cloud computing, but much more secure.
Want to know more? Keep reading to find out what you need to know about a virtual data room.
What Are Virtual Data Rooms?
Due diligence is a necessary part of any M&A (merger and acquisition) and requires the use of a data room. Before modern technologies could be applied in an M&A scenario, those who wanted to view the documents for due diligence needed to enter a physical data room. This is no longer a limitation.
Virtual data rooms, also called VDR or electronic data rooms, are similar to virtual vaults for a company’s documentation. If you can imagine a safety deposit box behind a bank’s vault, the VDR is where it is stored and the private room where you look into the safety deposit box’s contents.
VDRs enhance a company’s due diligence processes. They also reduce the physical paperwork involved, lowering the cost of doing business. They’re known by many names, such as virtual deal rooms, data rooms, or private virtual rooms.
They allow users to share information with clients and investors in a private digital environment, similar to sharing information in a physical safe room in a spy movie. It also allows executives to discuss matters in a digital “safe house” setting.
As you can see, while VDR was developed for M&A transactions they can serve a purpose far beyond that needed for only due diligence scenarios.
Why You Need A Virtual Data Room
If you’re in banking, law, technology, pharma, energy, or a large corporation you know the needs for confidential document sharing and collaboration spaces. Intellectual property data is essential for the success of your venture.
In many cases, there are punitive measures for breaching that confidence, such as with legal documentation and banking. For these reasons and more, you need a dataroom service provider with experience and knowledge of these sectors.
You might think an encrypted cloud service is all that is necessary — it is not.
Compared to the best virtual data room, cloud document sharing doesn’t hold a candle to the security measures virtual data room providers can give. We’ve all sent an email or message to the wrong person. VDR permissions provisioning blows cloud sharing out of the water with unprecedented control over who can see what and for how long.
With HIPAA, SOC 2, and GDPR compliance in mind, VDR services can’t be matched.
Virtual Data Room Services You Need
Just about any company with security needs for their data needs virtual data rooms, we think you’ll agree.
Digital Music News believes music is no exception. With a need for intellectual property rights in music, we’re proud to bring you information tools you can use to keep your music safe. Between songwriting and mergers between bands and labels, we hope to bring you the best security options you can use.
Make sure to keep browsing to find what else we can help with!