A virtual data room is (most often) a cloud technology that allows you to store files and hold online meetings in the most secure environment. Here you cannot worry that your data will be lost or lost during a hacker attack.
VDR technology is ideal for both small and large businesses. They can conduct large transactions, giving experts access to the necessary documentation.
History of the virtual data room
Initially, the data room was not virtual – it was a very tangible room in which there were a large number of different documents. The data room was usually organized for large transactions, such as mergers and acquisitions.
Such a process could take many months when mountains of documents were brought into the room, and lawyers, financiers, and marketers checked them. Of course, in this chaos, it wasn’t easy to talk about data protection.
But already in the 60-the 70s of the last century, the first hints of virtualization of the data storage process in rooms appeared. The first sketches of virtual data rooms began to be developed, and the first such products appeared in the 70s and 80s. However, the real dawn of technology came in the late twentieth and early twenty-first centuries.
Now, thanks to the hard work of many developers, we have access to hundreds of services that delight with security and an abundance of various functions.
How does the WDR work?
A virtual data room is a highly secure cloud where company employees can upload materials: files, reports, documents, and projects. You can grant different levels of access to company employees and experts invited from outside. The latter is necessary for conducting due diligence, for example, before buying a company. Also, mergers and acquisitions require careful analysis of documents.
Often, the VDR has the function of a board portal – that is, the company’s board can hold online meetings here, adopt resolutions, and approve the strategies and plans of the enterprise.
Why is it important to protect company data?
Various documentation is stored in virtual data rooms – from financial reports to enterprise development strategies. Such files should not fall into the wrong hands: competitors can find out about the plans of your enterprise, reveal the names of your customers and employees, and threaten the enterprise’s financial stability.
In such a situation, it is not only about the safety of money and the honest face of your company but also about losses. Your company can be sued; customers can refuse services – all this will lead to a significant decrease in profits.
Data breaches’ negative impact on large companies cannot be underestimated. Not only does it undermine consumer confidence, but it can also have huge financial implications. Regulators worldwide are imposing hundreds of millions of dollars in fines on a firm if its users’ confidential information is compromised.
Consequences of data leakage
Data breaches are costly for companies, especially given the tightening of laws in recent years. Regulators in various countries are counting on such high fines to force companies to keep customer data secure. However, cyberattacks are unlikely to stop in the coming years, given that hackers’ methods are also improving.