Data rooms, disregarding if they are physical or virtual, are called to guarantee secure space for storage of confidential and sensitive corporate information.
Physical data rooms are perceived as more traditional as they appeared much earlier than virtual data rooms (or so-called VDRs). Physical data rooms are literally rooms rented at vendors’ buildings or elsewhere. Such rooms are supposed to be constantly monitored and guarded to ensure a safety of the documents stored inside. The bidders interested in business relations visit the data room to get acquainted with the information shared by the company.
Nearly the same happens when the data room is not physical but virtual. The main difference is that all the data in digitalized and the room does not actually exist: it constitutes an online space which can be entered only by authorized users who possess login and password. The track of who accessed the room is usually kept automatically which helps the owner or the room to detect and monitor the most interested bidders.
Physical data rooms, as well as VDRs, have their own benefits and drawbacks. Hence, the undeniable advantage of physical data room is that it is possible to store tangible samples, products and other physical objects there. In addition, physical data rooms are more secured for information leakage than the VDRs. At the same time, one of the main inconveniences related to physical data rooms is that bidders can enter the room only one by one: two teams cannot examine documents simultaneously. This restriction prolongs the time needed for transaction or deal to be completed. An additional problem of a physical room is that bidders have to arrive at the place where the room is located. It means that for some of them a long flight will be needed as the room can be in geographically remote place. Such business trips, accommodation, etc. require additional expenditures.
As a virtual data room is not tied to any geographical location it removes the space restriction: bidders from all over the world do not have to bother themselves with flights – they just have to enter their login and password. In addition, VDR eliminates the time restriction: users can enter the room whenever they want, not one by one according to previously appointed order. And what is even more crucial – the room is accessible 24/7. Thus, numerous bidders are allowed to examine documents simultaneously which speeds up the process of finding the right partners and finishing up the deal.
Summing up the pros and cons of data rooms, it can be stated that virtual data rooms seem to be cheaper, more convenient and efficient in comparison to traditional physical rooms. Nowadays, numerous vendors providing VDR services appear. However, not all of them are equally secure and reliable. iDeals has a reputation of trustworthy provider of virtual data rooms: they have all the required certification, complex security system that includes two-factor user authentication and strong 256-bit data encryption, they also give their clients all the rights necessary for management and control of access to the data room and guarantee the quick and sophisticated assistance of the support team. Thus, iDeals is capable of establishing secure virtual data room where sensitive and confidential information will be stored and shared under the intent supervision of professionals.
Micael Granberg, Chief Marketing Officer at iDeals Solutions
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