The virtual data room market was valued at $1.3 billion in 2018 and is projected to reach over $3 billion by 2026. Yes, VDR market growth is phenomenal, but virtual data rooms are relatively new business solutions that gained more fame during the Covid-19 pandemic. Yet, numerous professionals and businesses still don’t know much about data room software.
Corporations, small businesses, enterprises, and professionals often come up with different questions about online data room software. Here are the top 5 frequently asked questions — and detailed answers to them — to give you a clearer picture of an electronic data room.
A virtual data room, commonly known as data room software, is a multi-functional cloud-based business solution. Virtual data rooms have three primary functions, including:
● Data repository. Every electronic data room is essentially an online data repository where companies, firms, enterprises, government agencies, and professionals can store sensitive or routinely used documents. A lot of people think that data rooms are limited to businesses, which is not true. Professionals, freelancers, or independent contractors are using virtual data rooms as secure data repositories.
● Virtual workspace. Secondly, an online data room is used as a virtual workspace equipped with practical collaboration tools. Data rooms are remotely accessible, and users can access, share, edit, download, and print documents in a data room from anywhere. Virtual data rooms allow the users to conduct online meetings, start group conversations, work on shared documents, collaborate on different projects, share updates, and whatnot.
● Deal room. Lastly, modern virtual data rooms such as iDeals, Firmex, Merrill, etc., are used as virtual deal rooms where businesses conclude complex business transactions. Due to this reason, VDRs are common in mergers and acquisitions, real estate transactions, IPOs, auditing, etc.
Electronic data rooms are not ordinary business solutions; certified virtual data room providers host them. These data room vendors comply with strict local and internal data security standards, including FINRA, ISO27001, ISO 27081, SOC2, and Safe Harbor’s international privacy practices.
Besides, high-end data room services employ multiple layers of security (security features) to provide maximum data protection at different levels. Here are some notable security features in VDRs.
Virtual data rooms are suitable for professionals and businesses in any industry. Secure data storage is currently a universal need of any business in the world. Data room software are presently serving many business sectors, including;
Choosing a virtual data room depends solely on your business needs, but here are some essential elements you cannot ignore:
Virtual data rooms are not expensive; it depends on your business needs and what type of features you are looking for. Virtual data room providers come with flexible pricing plans; you can choose them according to your business needs. For example, some virtual data rooms charge as low as $5/user/month. Some vendors offer fixed pricing plans.
On the other hand, data rooms help you save money in different ways. Virtual data rooms are paperless solutions that can minimize paper, printing, stationery, and courier costs.
Virtual data rooms are not expensive at all; it depends on how you want to use them and what type of pricing plan you choose. Most importantly, they are highly secure data repositories where you can safely store your business data, and their cost-effectiveness and ease of use make them a desirable business asset.
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