Did you know that, on average, a company spends 3% of its revenue on paper, printing, and document maintenance costs? In fact, companies in the United States spend more than $120 billion annually on just printing forms and other business documents. Shockingly, these figures just represent the US; what about the volume of financial resources spent on papers in other parts of the world?
Can you imagine spending $3 out of every $100 on paper and printing expenses? Surely not, and that is the reason why businesses are rapidly switching to paperless solutions, such as VDR software, for document management.
Virtual data rooms have just revolutionized data storage and management practices around the globe. They have enormously minimized paper costs, and at the same time, they are more secure than many other data storage options.
What else can you use data room software for? How can a virtual data room help your business? Keep reading if you are looking for answers.
What is Virtual Data Room Software?
A virtual data room often termed VDR software, is a highly secure, centralized data repository where businesses and professionals of all types can store their important documents and other forms of data.
What differentiates virtual data rooms from other data storage platforms is their unparalleled security. VDR providers offer these data room services without any involvement of third parties.
As virtual data rooms are cloud-based software, users can access them from anywhere, anytime. In fact, present-day data rooms help you access data room material even without internet access.
What’s more, online data room software is enriched with collaboration tools, making them advantageous virtual working spaces. Users can share documents, communicate in real-time, work on shared documents, and whatnot.
Why are Virtual Data Rooms Beneficial for Businesses?
Virtual data rooms have so much to offer to businesses. Here are some worth mentioning advantages of VDR software.
1. VDRs Save Time
The paper documentation system slows down everything. There can be so many scenarios but for your understanding, let’s discuss only a few of them. Imagine how much time would it take:
- To find a document from hundreds and thousands of files stored in a physical data room?
- To distribute a feedback form or a questionnaire among your employees, have them record their responses, collect the forms, and then process the data?
- To mail a document to other branches or franchises of your company?
A virtual data room can simply reduce the time required for these processes by 10x. For example, you can store all your business data on a centralized platform and permit your employees to access it whenever they want. Moreover, data room users can locate any file by just entering the keyword, file name, or phrase in the search bar.
If you want to conduct a feedback session, you can create a group of employees, dispatch the feedback form, and have them fill it out online. Can you believe that signing a document online is not a problem anymore? Yes, the e-signature features in virtual data rooms allow the users to sign any document electronically.
2. VDRs Provide Data Security
Protecting your important business data from internal and external risks is a challenging task. This is where virtual data rooms come in very handy because of their hard-to-beat security.
A secure data room employs multiple layers of security to protect your business data at different levels. For example, the two-step verification feature acts as an entry barrier for unauthorized users. If someone tries to log in with any data room user’s credentials, the data room will send a secret code through an email or text message. This will immediately notify the user whose password has been compromised.
Similarly, data room users can share files in encrypted form, ensuring that only the intended recipient can decode the document. Here are some other useful security features in VDRs:
- Document Access Control: data room administration or document owner can give or revoke access to a document.
- Activating the “View Only” Mode on any document prevents the users from editing, downloading, or printing that file.
- Digital Watermarks can be added to claim copyrights on any file as they allow you to track down the document’s creator.
- Device Purging is one of the most useful security features in the data rooms. If a user loses their device connected to the data room, the administration can immediately purge that device.
3. VDRs Save Money
Every business, whether small or large, would love to use its limited financial resources efficiently, and virtual data rooms can help your business achieve this goal. Using a paperless documentation system means you can avoid paper and printing costs. So technically, you are saving 3% of your overall revenue.
Apart from that, if you believe your workforce can easily collaborate in a virtual data room, you can run your business without renting an office/physical workspace. Virtual data rooms are a perfect solution for remote service providers such as tech companies, freelancers, financial advisors, etc.
Final Words
Switching to paperless documentation solutions is not just an option anymore — it is becoming a necessity. That’s because paper and printing costs can drain your financial resources. Furthermore, employees nowadays are more comfortable with remote working opportunities. If you want to keep up with the market trend, sooner or later, you will have to incorporate VDR software in your business operations.
If you consider choosing a virtual data room solution for your business, go now to the website and get acquainted with a detailed data room comparison from experts.