A provider of virtual data rooms offers a variety of tools that streamline and simplify collaboration and document storage. Virtual data rooms provide many software features that are not available in file-sharing apps for the consumer or standard office software. This makes them a vital tool for business processes. A VDR, for example is a tool that encrypts all the files that are shared among users. It can also be set up to handle different file sizes and formats, based on the needs of each user (lawyers might need to share mostly written documents, whereas architects or doctors may require high-definition videos and images) and provides detailed activity reports to send to regulatory agencies.
VDRs also support due diligence processes which lets investors and businesses review sensitive business information related to an acquisition. They can also be used to store and manage legal contracts, partnership agreement and life science product developments, and other complex business projects. VDRs are also used to manage the process of recruiting, through hiring and removing employees and handling the related paperwork. They also serve as a secure repository to facilitate the legal hold process, where a business is legally obliged to preserve the documents and other data related to litigation in progress.
The best VDR providers are those with strong security standards, and offer features that meet the requirements of specific industries. They should be equipped with the highest security certifications – FedRAMP, FINRA and HIPAA and also advanced features like real-time vector watermarking and classification labels and malware detection. They can be configured to accommodate different types of users and accessibility levels, and also the ability to restrict access to certain areas like a view-only, downloading or editing access. In addition, administrators can suspend access privileges right away to protect against security breach.