5 Essential Questions to Ask Yourself to Know if You Need a VDR

There are many things for VDR. But here let's start by, focusing on the five essential questions

A data room virtual is a necessity for all businesses; the actuality of this narrative depends on your needs. If you are a professional, independent contractor, or business owner, you have to manage your data one way or another.

Generally, modern businesses are using virtual data rooms as data repositories, virtual workspaces, a medium of communication or collaboration, or virtual deal rooms.

There are many things to consider before subscribing to an online data room software service. To start with, focus on the five essential questions below.

What is a data room? Virtual space for storing data

An electronic data room is an online data storage facility where businesses, professionals, independent contractors, corporations, enterprises, government agencies, etc., can store and share their important business data.

Online data rooms are also enriched with collaboration tools and can act as virtual workspaces where inter-organizational and intra-organizational collaboration can occur smoothly.

Lastly, businesses also use VDRs as secure virtual deal rooms for complex business transactions such as M&As, real estate transactions, client dealing, initial public offerings, fundraising, etc.

Now you have a better idea of what exactly data room software is. Let's help you decide whether you need it or not.

Do you need data room software? 5 essential questions to ask

1. Is your current data storage method safe?

Obviously, you must be using a certain data storage method. It can be your computer's hard drive, a USB, or free online storage facilities. If you own a small business or just starting up, you must have some sort of data storage facility.

As small businesses or startups often face financial resource shortages, they opt for conventional options such as paper documentation or storing business data on computers or laptops.

Ask yourself these questions:

• Do you have a data backup plan in case you lose your precious business data?
• Do you have to make extra expenses for a data backup system?
• Are you sure that your business data is safe from hacking?
• Do you think no one can break in and copy all your important business documents?

If you have answers to all these questions, you can stick with your current data storage method. If not, then consider VDR as an option.

2. Do you travel often?

One of the major problems for business owners and professionals is the inability to access their data remotely. Obviously, if your business follows a paper documentation system or the data is kept in on-premise devices, you can't access it remotely. Things may get worse if you are out of town for a few days.

This is where virtual data rooms are so effective, as they are remotely accessible. You can log in to your data room from anywhere at any time. In fact, modern VDRs allow you to access stored data without an internet connection.

3. Can you safely share your business data with third parties?

Let's assume that you have an unbreakable safe data storage facility – can you share your business data with your clients or third parties safely? Can you trust email service providers or Dropbox for sharing your highly confidential business documents? Obviously, no one can guarantee that. Besides, once you share the documents, you have absolutely no control over them.

In such circumstances, data room software is beneficial. First of all, you can make sure that your business data never leaves your controlled platform. You can add your clients to your VDR and give them controlled access to your data. If you don't want them to copy or download any file, just activate the "view only" mode.

4. Is your data safe from internal threats?

Yes, you need to keep your data safe from external threats, but you cannot turn your back on internal risks. How would you know if one of your own employees copied a critical business file and gave it up to your competitor? Also, you cannot trace the changes made in files or documents.

A virtual data room gives you a complete record of every activity in the room. The audit logs inform you who did what, when, and where. A black sheep can never outfox you in your virtual data room.

5. Can you seek assistance if you get caught in trouble?

Who can you turn to if you lose your hard drive, USB, or paper documents? Nobody but yourself. Hiring certified virtual data room services can assist you in any possible way. If you lose a file accidentally, you can recover it. If you face any technical difficulty, you can contact customer support. The best part is that high-quality virtual data room providers offer 24/7/365 customer support service. Therefore, you always have someone to watch your back.

Final words

Using a virtual data room is a choice that depends on your personal or business data needs. If you think your current data management system is doing fine, then opting for VDR is not necessary. But if you cannot answer the above-mentioned questions confidently, then virtual data rooms are a must-consider option. Therefore, it is high time to compare virtual data rooms, choose an optimal data storage solution, and boost the security of your business!