The term virtual data room is the talk of the hour. But what is the origin story? Does the size of the business affect the benefits of a virtual data room? In this blog, you will understand the history of virtual data rooms and how you can benefit from using it. If you are not a virtual data room user, you will realize what you are missing out on. The emphasis of this blog is on how virtual data rooms help startups and small businesses.
Cloud computing has been evolving since the early 1960s. It is one of the greatest strides made towards technological advancement. John McCarthy[i], an American computer scientist, used the concept where organizations could simultaneously use one mainframe.
This is called timesharing. This played a vital role in pioneering cloud computing. One of the first few definitions of cloud computing is “A computing paradigm where the boundaries of computing will be determined by economic rationale, rather than technical limits alone.”[ii]
The term was first coined by Compaq computers in the year 1996. Once, cloud computing systems were in the market, companies wanted to expand the scope of cloud computing and hence, virtual data rooms birthed.
It was mainly formulated to help lawyers and law firms with the process of due diligence. Circa 2006, Eric Schmidt broadened the scope of cloud computing. Soon after, giants like Amazon, Microsoft, IBM started initiatives to market this cloud computing software. Therefore, since around 2006, virtual data rooms have been making merger and acquisition deal simple and have been saving a lot of time, money, and energy.
Since the birth of cloud computing, we have availed several benefits. Virtual data rooms are mainly used in merger and acquisition deals. They aid in the process of due diligence. With virtual data rooms, you can store and transact enormous data securely. It reduces several cost heads and increases efficiency and productivity. The following are a few of the many advantages of using virtual data rooms:
The key feature of a virtual data room is the storage space. All forms of cloud storage have sufficient storage but with virtual data rooms, you will have sufficient storage. You will be able to store all your documents in one place. This makes your work convenient. Virtual data rooms are encrypted and hence, storing and transacting data is secure.
Virtual data rooms play a crucial role in merger and acquisition deals. Due diligence is the process wherein the parties to the deal, vet each other. It includes document exchange and data scrutinization. Doing this physically comes with several hurdles. The parties might not reside in the same place and since several departments and third parties are involved in the vetting process, the documents will be sent to places.
There is a huge possibility that the documents might be lost and damaged in transit. The companies cannot afford this. This is where the virtual data room comes to the rescue. Store and transact enormous data without the worry of it being lost or damaged.
Having a physical data room accompany several costs that can be eliminated by using virtual data rooms. With physical data rooms, you have to spend a fortune on stationery. The amount of paperwork that goes into a merger and acquisition deal is hefty. Eliminate stationery costs with virtual data rooms.
Further, physical data rooms need security personnel to protect the documents. However, virtual data rooms come with an in-built security mechanism and hence, eliminates the cost of security. Further, if all documents are stored virtually, the physical space where the documents are stored can be effectively used for something else.
The due diligence involves the frequent exchange of documents between the parties. Decisions are made based on this exchange of documents. Exchanging documents physically involves a lot of effort and time. Emailing documents is not completely secure and these deals require complete security. Virtual data rooms save you a lot of time and effort. The companies can upload their files and grant access to whomever they deem fit. Therefore, the parties have immediate access to the documents.
It is easier to manage your files when stored in virtual data rooms. You can create groups and folders within a data room. This helps you stay organized. With the advancement of technology, virtual data rooms come with the smart search feature. This helps you look for files faster.
A virtual data room is what you need. If you are not using a virtual data room, you are missing out on so much. A data room use actually increases productivity. It is cost-efficient and time-efficient.
If you are not using data rooms, you will have to spend a lot on stationery. This is not economical or eco-friendly. Further, one has to spend a lot of time organizing files physically, which in turn delays business decisions. Sometimes, when organizing them physically there is a fair chance of missing a file.
Therefore, if you are not using virtual data rooms, you may miss being economical, eco-friendly, organized, time-efficient, and productive. Switch to virtual data rooms today. Since DCirrus is the best data room provider in the market, we highly recommend using our virtual data rooms.
Startups and small businesses are companies that are emerging. They make the best of the limited resources they have. A startup revolves around a set of ideas and innovations. If these ideas and innovations are available to the public or the startup faces some kind of data breach, the entire business will fall apart.
One needs to store these ideas and innovations somewhere and then we can send it to investors. Other companies will want to merge with startups. Startups will have to be extremely cautious when transacting their ideas. They have to take all reasonable measures to ensure their data is stored and transacted securely. They cannot afford the aftermath of a data breach.
A virtual data room is extremely convenient for startups and small businesses since one platform provides them all amenities. They will not have to invest in other software to store and transact data. They can give investors restricted access to the room, this way, they can monitor what is being done with their documents.
Further, the investors don’t have a copy of the documents and thus, the risk of misuse of documents is greatly reduced. Since virtual data rooms come with managerial tools, it helps them be efficient, which in turn helps in the growth of the business.
The major concern for startups and small businesses in security and privacy. They cannot afford a monetary and reputation loss; it will run their business to the ground. They require an extremely secure system. However, secure systems are expensive. Small businesses and startups have limited funds and hence are frugal. They make the best of what they can afford. They, therefore, require a highly secure system at a very affordable price. And DCirrus is the most cost-efficient and secure solution to this problem.
No doubt, DCirrus is the best data room provider in the market. Our data rooms are ideal for startups and small businesses. We provide high-level security at a very affordable price. And we understand your needs and we cater to them. We are aware that startups focus on keeping their data secure and private.
But Dcirrus allows you to focus on the other aspects of your business. We make sure the security of your ideas and innovations. Our mission is for you to give you the utmost privacy and security. Our data rooms increase your efficiency and reduce the risk of a data breach.
Most cloud storage companies have access to the data of their clients. But that is not us. We are only here to assist you. We do not access your data whatsoever. Our data rooms allow you to restrict access to a great extent. You can track the access. And you can restrict the copying of data to other devices. You can restrict access within our company. A lot of times, data breaches are a result of an internal slip. Reduce this internal slip to a great extent to a large extent.
We completely understand the financial aspect of investing. Our data rooms are inexpensive. The price you pay for complete security and privacy is very small. DCirrus makes sure you can be frugal and efficient at the same time. By using our data rooms, you can use the additional costs you would spend on other projects. This increases your profits, which will give way for growth.
[ii] Professor Ramnath Chellapa, Emory University, 1997.