Over the last decade, it has become very important to incorporate technology into your business. Deals have become more complex and processing speed is now a critical aspect in closing a sale. This is why you need a robust virtual data room in your business to help you share and collaborate information with ease with both your internal and external teams. Firmex is the current market leader providing the most secure data rooms coupled with award-winning customer service. Talk to them today and book your demo.
Are VDRs a one size fit? Does this technology come with drawbacks? Let’s look at some advantages and disadvantages of using a virtual data room.
Virtual Data Rooms Are Secure
One of the greatest advantages of VDRs is security. Because VDRs use a project-by-project approach, only customers and clients with authorized access can be able to view the documents in specific data rooms. The data room administrator is also able to track all user accounts and can see what actions have been taken by each user and the time they were performed on the system.
Tracking and record-keeping make everything simple and this means that project managers do not have to keep checking on who accessed the virtual data room without permission. However, you also need to know that all virtual data rooms are not the same. Some virtual data rooms do not have the right IT features and therefore they may not be suitable for handling financial data or highly sensitive data that if breached can result in identity theft.
VDRs Save Time and Help Businesses Grow
Time is money in the business world and therefore, the more time you have working on the most important aspects of your business, the better your chances of making more money. Thanks to VDRs, authorized users can access information at any time from anywhere in the world without having to physically come to the data room to get a file.
This allows your business to continue running uninterrupted even during times of crisis. The speed of implementation is also quite fast when using a VDR. Due diligence is applied faster because documents are easier to review regardless of the user’s location.
This means that deals can be closed sooner since all parties can be able to view the required documents and agreements, make changes in real-time, write and read comments and also create to-do lists for everything that needs to be approved. This saves a lot of money and time as compared to having endless board meetings.
On the downside, you need to know that you will need to set up so many VDRs and archive them when the projects are accomplished. If you have too many digital files, eventually, your system will start bloating and slowing down.
This is the reason why VDRs are better suited for some businesses such as law firms, real estate companies, banks, audit firms, pharmaceuticals, and mining companies, as compared to large corporations that are required to share terabytes of data with hundreds of customers each and every day.
However, you can solve this problem by first determining why you need a VDR before you make your investment. Look for a VDR that is suitable for your company’s needs. If you have a large business, make sure that you work with a vendor who offers VDRs for large businesses. Identify the most important features and work with the vendor who will provide what is most important to you at the cost you are willing to pay. It is also important to ask if they have free trials so that you can review them before making the purchase.
Published on Holr Magazine