What is a Data Room? A Detailed Explanation and Comparison.

Do you want to find the only document management software you need to improve the efficiency and security of your business? Check the detailed explanation and comparison of the data room software in the article below.

The Notion of Data Room Software and Its Main Function

Data leaks are a problem that more and more companies around the world face every year. How companies can protect their weakest point – sensitive information displayed or printed – with virtual data rooms.

In the domestic IT sphere, few people are really familiar with such a concept, or even a definition, as a virtual data room (Virtual Data Room). As a rule, when the beginning of the phrase: “Virtual room…” sounds, people immediately associate it with Mirapolis, Webex and other cloud solutions for holding webinars and online conferences. But VDR has nothing to do with this.

The main function of the vdr software is to provide access to secure documents for authorized users through a specialized website or through secure agent applications for Windows, macOS and Linux workstations, as well as Android and iOS mobile devices.

Companies resort to data room solutions in order to achieve its main effect – the synergy effect from the transaction when the value of the combined companies exceeds the value of the organizations separately. The synergy effect is achieved due to the elimination of duplicative functions, access to new resources and technologies, as well as to new markets. The new company gains access not only to additional resources and assets but also takes control of all the obligations of all companies that have become its constituent parts.

VDR -Product for Import Substitution in the Field of Secure File Storage

The growing adoption of cloud storage technologies is fueling the growth of the virtual data room market as it is a cost-effective way to eliminate the need for physical storage, reduce document usage and reduce travel costs.

Most people think of online data room software as a platform solely for protecting business processes in companies. However, many people use it professionally to store important and relevant information. VDR works similarly to Google.Drive, is a space where you can upload important documents and set different levels of access to them. At the same time, all documents used in the space will be automatically marked with invisible marks, which will allow, in the event of a leak, to conduct an examination and identify the source.

As for the main VDR workflow, it looks like this:

  1. Creation of a data room.
  2. Downloading and structuring documents of a private company is most effective.
  3. Adding new users to the data room.
  4. Giving certain users access to certain documents.
  5. Starting the data cabinet. All users must access it at the same time to avoid misunderstandings.
  6. Control of user activity: who is the most active and interested, who has not viewed any document, etc.
  7. Completion and closing of the data room.

Understand what is happening with the contents of your data room at a glance. Colored reports (heat maps) show which groups are most active and which sections of the data room they are most interested in. It simplifies decision-making. The disadvantages include the limitation of tools to the list originally provided by the program. But this branch of the IT business is constantly developing, and data rooms are becoming more sophisticated.