Did you know that the digital data room market had crossed 1 billion USD figure back in 2018? In fact, as per predictions, the market will cross the $3.5 billion mark by 2027. What triggered such a rapid growth of the VDR industry? Why are businesses around the world rapidly switching to online data management systems like virtual data rooms?
Dataroom software has become the primary data management solution for hundreds and thousands of small, medium, and large-scale businesses worldwide because of its unmatched data security system. In fact, not many business data management solutions can compete with virtual data rooms when it comes to data management and process automation.
Read on if you want to learn more about virtual data rooms, how they protect your business data, and why they are reliable software.
A digital data room consists of multiple security layers integrated with different features in the VDR. Here are some most important security features in the data room and their functions.
VDRs protect your documents from any possible threat. Here are some worth mentioning document security features.
- Fence view. Fence view or barred screen view protects any documents from being scanned, photographed, or screenshot.
- Dynamic watermarking. Dynamic watermarks in any document or file help in tracing information about IP address, changes made (or attempt to change/alter a document), time spent on a file, and time and date of accessing or editing the file. In simple words, digital watermarks are useful in settling copyright claims.
- Document access rights. VDR management defines the role and authority of every user in the data room. These roles define the extent or level of document access within the data room. Management can restrict users from accessing specific folders or files and editing, printing, or downloading documents.
- Remote wipe. Arguably one of the best security features in VDRs; you can wipe or delete all the data and disconnect a stolen or lost device from your virtual data room.
- No footprints. Modern VDRs make sure that once a file or document is viewed, it is wiped off from the browsing history or cache memory of the device.
- Remote shred/access revocation. File creators or data room administrators have full control over the documents even after other users download them. Moreover, it is also possible to revoke document access anytime.
- NDAs (non-disclosure agreements). If the VDR administration feels unsafe about a third party during a business transaction, it can use built-in NDA templates and get them signed by external/temporary users. NDAs are legal documents and can be used in a court of law.
- Data encryption. VDRs use strong data encryption methods (256-bit) for data protection. Both documents and the data inside them can be shared in encrypted form.
- Two-step verification. No user can log in to the data room without identity confirmation. VDRs employ a two-step verification process (a password and one-time generated code sent to users’ mobile numbers or email addresses) to restrict the entry of unauthorized users.
- Audit logs. Data room management and users (depending on permission settings) can generate detailed audit reports. These reports provide second-by-second information on all data room activities in a specific time period.
- Multi-factor authentication. Users have to go through different steps if they log in from new or unrecognized devices. VDR makes sure that no unauthorized user gets through even after getting a user’s password.
- IP and time access restrictions. Virtual data room management can restrict certain devices and users from accessing the data room for a specified or scheduled time period.
- IP address tracing. Virtual data rooms can immediately trace the location and IP address of any device as soon as it is connected with the VDR.
- Multi-location servers. High-end virtual data room vendors install their data servers at different locations. This helps avoid data loss if one location is hit by natural disasters.
- Real-time data backup. A backup of all the documents or files in the VDRS is automatically created as soon as the users upload them. Backup files are also stored in encrypted form.
- Disaster recovery. Virtual data room vendors create data backups in multiple servers to eliminate the risk of data loss in any case.
- Supreme quality structural components. Premium quality data room services always use high-grade hardware that gives 99.5% uptime and can resist environmental effects.
- Physical protection. Data room vendors monitor data centers and power vaults 24/7 to make sure there is no interruption of workflow.
- SOC2- Type II
- HIPAA (mandatory for VDRs developed for the healthcare industry)
- ISO 9001/27001
- ISO 27081
- Safe Harbor’s international privacy practices compliance
- Citrix Sharefile
- Merrill Datasite
- Intralinks Dealspace
Despite hundreds of free online data storage options, businesses are persistent in using virtual data rooms for data storage and management. That’s because virtual data rooms boast flawless security features that almost make it impossible for hackers to steal your business data. Moreover, they are easy to use, as even a person with basic tech knowledge can easily operate data room software.