The Internet’s technological advances have empowered individuals and businesses like few other inventions since the dawn of time. Physical realities have transformed into virtual realities; physical relationships are built and maintained in virtual spaces; and businesses sell physical things on virtual markets.
Virtual data rooms (VDRs) are another way Internet technology is changing the way organizations of all sizes, including small and midsize businesses (SMBs), operate. VDRs enable businesses to store critical data in a cloud repository and provide other people or organizations with access to those files on a case-by-case, revocable basis.
Below are five of the biggest benefits of VDRs for SMBs in particular.
1. Maintain strong data protection
Although many question their security, VDRs employ very strict encryption methods to protect clients’ data. Even if the database were hacked, the data stored in it couldn’t be unencrypted without access to the encryption key. Furthermore, it would take significant computing power to unlock the encryption code, far more than a typical hacker would have access to. In addition, cloud systems are now considered more secure than on-premises systems for storing sensitive documents because cloud providers have the resources and knowledge necessary for maintaining high security; it’s their business.
2. Share and organize information quickly
Good business is all about time and organization. The more organized and quick you are in the business world, the more people feel comfortable doing business with you. Storing your files in a VDR makes it easy to organize and share your documents, benefiting you, your clients, and others who are using the given files. In addition, tracking mechanisms in VDRs allow you to know who is accessing which files and data.
3. Gain better control over data and files
Traditional data repositories rely on staff to file, maintain, and control access to documents, based on an individual’s or corporation’s permissions. Furthermore, physical data rooms are paper-intensive. VDRs simplify access control by setting and managing permissions electronically for individual users based on the data owner’s rules and restrictions.
4. Do deals faster
VDRs make it effortless to securely share documents electronically, translating into faster deal closings. They eliminate the need to travel to a certain location to safeguard information you need to share with another party. With a VDR, users can access data anywhere – even from the comfort of their homes, on a boat on the lake, or while enjoying time on the beach – because the data is always available wherever you are. VDRs also support bulk uploads, speedy access to data, and document collaboration/shared access, and reduce the opportunity for human error, meaning business can get done as quickly as possible.
5. Get better feedback and analytics
Tracking and reporting systems in VDRs provide feedback on the system’s performance, giving data owners and users opportunities to tweak their processes to better fit the business’ needs. Often, analytics generated out of VDRs provide companies with brand new leads for potential partners, even as they close current deals.
These advantages make VDRs a worthy and important investment for SMBs looking to take a competitive edge versus competitors still stuck in the paper (or on-premises) age of data storage.
Improve your business without breaking what’s working. See 4 Ways to Digitally Disrupt Your Business Without Destroying It.