Before the digital age, when everything was done on paper, businesses had to go to great lengths to keep their confidential documents safe. One document in the wrong hands could mean a blown opportunity, a lawsuit, or worse. The solution at the time was to use data rooms – physically secure spaces with access limited only to the right people. What a costly inconvenience.
Today, the Virtual Data Room (VDR) has done away with this inefficient and time wasting practice. Files can be stored securely on an online server or in the cloud. Multiple users can simultaneously and easily access and share vital information without the risk of data loss or theft.
In fact, a 2014 report by IBISWorld, a leading market research organization, calculated that the use of VDRs is growing at approximately 16.7% per year. And yet, many companies still use email and consumer grade document sharing services to store and distribute their confidential documents, barely retaining any benefits over the age of paper. Here’s why VDRs are much more secure and efficient.
Benefits of a VDR:
- Easily and quickly store vast amounts of information.
- Save money on human resource costs, travel expenses, and paper.
- Protect data against loss, damage, or theft with secure, online backup.
- Control access to information by setting user restrictions and permissions.
- Conserve an employee’s time by enabling access to information from the individual’s desk.
- Timely and efficient transferring and sharing of documents 24/7.
Although VDRs have been principally used for the storage and exchange of sensitive or confidential documents in financial settings, such as during mergers and acquisitions, other business fields requiring secure document storage can also benefit. Their extra levels of security have made them useful to numerous other industries at a time when cyber security threats loom larger than ever.
How can Marketers Benefit from Using VDRs?
One industry where this is especially true is in marketing. Think of the secrecy around an Apple product launch, or the sensitive information revealed in last year’s Sony Hack. Marketing is a profession where private emails and shared folders aren’t enough anymore.