Gone are the days, when in order to show the progression of the campaign, entrepreneurs needed to organize meeting for due diligence. It used to be carried on in the room with sellers and buyers in front having discussions upon various transactions, files and documents. While those sessions use to be interfacing but at the same time, they were time consuming and just unaffordable because of the process included.
Such a room where due diligence is conducted is termed as physical data room. Now since, this method was time consuming and at the same time the chances of data losses were high, hence there was a need of a resourceful option which could match up with the requirements of due diligence along with overcoming the drawbacks of the existing data room. Fortunately, with the advent of internet the solution was found to store the data online.
This included no requirements of rooms and meetings. Additionally all of the data could now be stored with proper management and that too without any threats of data loss. The sellers and buyers could access the data from any corners across the globe. The conveniences and benefits were higher than that of the physical data rooms and hence, this method was soon widely accredited with the term as virtual data room.
This has been specifically designed as an online repository of information to serve the purpose of distribution of documents and files. Further, this data rooms also managed to avoid the issues occurring in traditional physical data rooms. Other than that virtual data rooms are now also implemented with the features to hold back the data without letting it to lose. Hence, gradually they have been replacing physical data rooms for due diligence.
After completing successful sessions of testing, virtual data rooms have been considered to be advantageous for various industries and other high profile sectors. The best part about this method is the data security. Firstly there would not be any sort of data breaching as the user could be identified. Secondly the data could not be lost and thirdly an unauthorized user could not access the data from the system.
Analyzing the advantages, various other industries are now also opting for this incredible method for the due diligence process. All of the latest methods are used to keep the system working and compatible. The applications of virtual data rooms have been increasing from time to time. They are now also applicable for mobile content management (MCM), through which the users could access the data from their mobile, get explanation of PDF document and editing of Microsoft office documents enclosed in a secured data.
However, there are various necessities which are required to make a fully functional data room. You could also look out for other requirements of data rooms at www.rrdonnelley.com/venue/cn. Some of the features of data rooms include-
- Secured Data Centers: Some of the data rooms are now also offered through cloud hosted certified with various data centers including SSAE 16 and ISO 27001.
- Data Security: Virtual data room implements utmost level of encryption technique for the security of its data. Some of the bit encryption method used in this process include 128 bit and 256 bit AES. The hackers would have to use high quality coding techniques to decode the security.
- Authentication: This is provided for secured access of data by authentic users. Other than that, the permissions could also be set to control view, download and upload the files through the level of individual users and groups.
- Digital Watermarking: This is the one of the must have features of data rooms. Watermarks could be added to the files and documents to avoid photo capture, screen capture and printing.
Besides, there are various other features of virtual data rooms. Although they come well implemented with various features and options, but you still need to be a bit attentive to know their services before availing their services.