Virtual assistance, virtual university, and virtual reality are some ‘virtual’ terms we all are aware of. But are you familiar with the term Virtual Data Rooms? It is a rather new concept. If not new, it is for sure a term that not many are familiar with. It is indeed a complex concept. But do not worry, if you are reading this blog and have enough Internet data available, by the end of this read you will know a lot about Virtual Data Rooms. Consider the Frontier Internet prices and packages in case you are having trouble with your Internet. However, for now, let’s delve into the details of Virtual Data Rooms.
What is VDR?
You should think of Virtual Data Room as an online place where companies store their highly classified and sensitive information. However, you should not think of Virtual Data Rooms as just a storage place that acts as a backup for important documents for a business or company. It actually allows the company to share that important information or a document with third-party stakeholders as well. These include attorneys, shareholders, and investors. All this and not a single moment will you feel that you have to compromise on confidentiality. Businesses make use of VDRs for purposes like audits, fundraising, and IPOs.
Having said this, you might be wondering if VDRs are secure enough. Therefore, the next section deals with this question.
Is VDR Secure?
This is a rather crucial question. Because VDRs are used to store highly confidential information at times. Therefore, it is necessary for it to provide a secure enough platform for users to stay tension-free. By now, you all know that a Virtual Data Room is a cloud-based storage system. This concept is what would put many into doubts regarding the security of this platform. Because everyone reading this would think that we are talking about standard cloud hosting here.
However, there is a slight difference. VDRs are different in the sense that they involve data encryption. This allows for increased efficiency and security of the system. The documents are encrypted. This is regardless of the data transfer line encryption system that is already present. Therefore, if the third party makes an attempt to breach information, they will have nothing but meaningless information with them. This is the main reason for the encryption of data as well. It prevents unauthorized parties from accessing the confidential and sensitive information.
Not only this, but the following feature will also tell you how secure VDR is.
If you think that encrypting the sensitive data is where the security story ends for VDR, you are wrong. VDRs are different from the basic cloud hosting in this regard as well. There exists a rule that prevents third-party access to the important information of a company or business.
This is known as multi-factor authentication. Because it involves two steps before someone can access the data. The first step is the decryption of the file, the document or any data that one is trying to access. But the story does not end there. To access the decrypted document, the user has to enter a passcode or any other information as a secondary authentication process. These could even include biometrics and RSA tokens. Therefore, making the process even more secure.
It must not surprise you if I say that there is another step involved in the security of the document on VDR.
You must be familiar with the term watermark. The concept of digital watermarking is similar. The above two mentioned security steps prevent any unauthorized access to your data. However, these steps do not guarantee the prevention of leaks. Therefore, you add digital watermarks on the videos or documents or the audio files that you add to the VDR. Digital watermarking makes it easy for you to trace the source of the leak as it is unique to every file or video that exists. Because it involves technologies like AI and machine learning.
Having said this, you should also know if your business qualifies for VDR or not. Therefore, the following is the types of businesses that require the use of Virtual Data Rooms.
Do You Need VDR for Your Business?
Companies like investment banks, energy, biotechnology companies, and other financial institutions depend on the use of VDR to secure their information from any breach. Therefore, if you think that your business involves storing sensitive information, then you should opt for VDR. Because VDR ensures that your information will stay safe and secure.
However, you should remember one thing that a VDR to has various forms. And all VDRs do not offer all the security features. Therefore, you should inquire about the features and the security offerings of a VDR before you invest in one.
Apart from that, you should also opt for a secure Internet system for your company. Consider Frontier. The Frontier bundle prices and the security that they offer are remarkable. The company’s Internet comes with malware protection and you do not have to worry much about viruses attacking your systems either.