FAQs for Virtual Data Rooms

Data is pervasive, even in the most intimate aspects of our lives: our health, personal relationships, and even how we spend our leisure time. People may often want to maintain control over virtual data related to these critical aspects of their lives. The key is finding a way to safely share and protect personal information. Virtual data rooms offer just this kind of solution.

A virtual data room (VDR) is an online service that allows users to exchange sensitive data in a secure environment. Here are some frequently asked questions about VDRs:

What Does a Data Room Store?

A data room is a secure space that stores information relevant to a company's sale, acquisition, or merger. This is where an organization requires input from the other side of the deal. Data rooms differ from physical storage because they devise continuous, on-demand access to files instead of storing data in one central location for later use. 

What Are the Different Types of Data Rooms?

Data rooms are usually classified into two categories: online-hosted and physical data rooms. The type you choose depends on your preference and your company's requirements.

An online-hosted data room only requires an internet connection to store and access data. This type may be cost-effective as it requires less infrastructure than an on-premise data room. This also allows employees to access information from anywhere as long as they have an internet connection. They don't have to always travel to the office.

Physical data rooms are spaces dedicated to holding company files and information. These rooms may be more expensive to organize and maintain and may be less secure.

How Are VDRs Different From Hard Drive-Based or Cloud-Based Storage Accounts?

VDRs, hard drive-based, and cloud-based storage accounts provide storage capacity for files to be saved as hard copies or electronically using computer networks. But the main difference is that virtual data rooms and cloud-based storage accounts allow you to store data online. Hard drive-based storage accounts store data offline.

What Are the Benefits of a VDR?

VDRs have several advantages over unbundled hosting or a standard website. They have a more comprehensive range of features, provide more efficient bandwidth use, and are often less expensive.

Virtual data rooms may reduce costs by eliminating the need for IT support and maintenance fees. Keep your servers and accounts up to date with the latest software updates for longevity. A VDR has many functions beyond simple document sharing. VDRs allow your team to experience the following:

  • Global compliance
  • Integrated data storage
  • Process automation

Will I Need a Dedicated Server?

Some VDRs require a server or other CPU-intensive applications to operate correctly. Most VDRs do not require special hardware and are hosted on the cloud. This saves you the trouble of maintaining servers and a dedicated IT team. Using the cloud to store data allows you to access data from anywhere worldwide with an internet connection.

How Do I Get an Account?

Once you have chosen the vendor offering the service and determined what type of server you will use, you will need to open a service account. The vendor may assist with this process and provide specific instructions. You can create a new user account that matches the business's domain, e-mail address, and password.

How Do I Provide Access to Different People at the Same Time?

You start with user-provisioning once you have an account set up. The vendors may help you create new user accounts for your company and provide documentation. VDRs also offer the option to securely share documents with people outside of your business. This can be useful in situations like mergers and acquisitions.

Does VDR Storage Have a Shelf Life?

The agreement between you and a data room provider may have an expiration date for the contract, usually one year. In that year, you both need to agree on how to manage your respective data rooms and potentially renew if you are interested in continuing to use the same provider.

Use a Virtual Data Room for Your Business

There are various virtual data room vendors online. Look for a vendor that has reliable reviews and experience. Do individual research to see if the VDR provider has all of the features and software that you need for your business. Securely share and store data with your own virtual data room today.

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