Software as a Service (SaaS) is poised to provide some of the most innovative and effective strategies to accomplish these goals. One such method is the use of Virtual Data Rooms (VDRs).
Understanding Virtual Data Rooms (VDRs)
A virtual data room is a type of cloud solution designed specifically to store and secure highly sensitive information but to enable efficient sharing of that information with specific parties. In these “rooms” which are often secured websites, teams come together to exchange confidential information and data as well as complete due diligence activities.
To safeguard sensitive data, VDRs offer limited access. Most of the time, these spaces require specific permissions that enable only specific authorized parties to access the data present. Some solutions create various levels of security managed by an administrator, allowing for highly precise allowances or limitations for sharing data with just those parties that need access.
The Evolution of Data Security in VDRs
Long ago, data rooms were physical storage places. They contained paper copies of documents and were under lock and key, and in some situations with security. More recently, these data rooms have transitioned to operating like a website, as a type of virtual space that can be used by those who need them in a very secure digital environment.
VDRs are commonly used and growing in importance when it comes to data sharing and compliance. They are used by:
- Corporate development teams
- Organizations prepping for IPOs and launches
- Investment professionals
- Private equity professionals
- Merger and acquisition professionals
- Accountants use them
- Lawyers can use them to share sensitive information
- Data rooms help with sensitive business information sharing
In these situations, there are several core important factors. The first is that the data room must be transparent, meaning that those who need to access it need to be able to gather all of the information present and verify its accuracy. Second, they must be at the highest level of confidentiality present. No data can be copied and removed from these environments. This helps to foster a sense of confidentiality so that there is no risk of losing data if a deal goes bad.
With data rooms, financial information is protected from theft, including ransomware and sharing. That way, there is no risk to any participant, and there is clear access to the necessary data.
Introduction to SaaS in the Context of VDRs
As a SaaS, VDRs can offer a variety of customizations to enable the right type and level of security for the specific tasks at hand. A quick look at SaaS statistics shows that these tools are a must in an industry where 99% of companies today are using at least one SaaS solution.
When considering the value and functionality of VDRs, it’s critical to think of them as more than just a lockbox of information. Rather, they are designed to provide a much higher level of security. SaaS providers who design and manage VDRs work to create highly sensitive and specific solutions to meet business objectives with a fine-toothed comb. Because SaaS can move so quickly and match needs as they change, they are a critical ally in the creation of highly effective VDRs for specific purposes.
Key SaaS Security Features Enhancing Virtual Data Rooms
At their core, SaaS tools are customized. They incorporate various types of tools and features to make them function at the highest level for the end user. What a product development manager needs for a new building is much different than what a company planning an IPO needs in a VDR space. SaaS facilities that through features.
Some of the most important security-focused features SaaS offers to enhance VDR security include these examples.
- Security: At their most important level, VDRs must offer security. In most cases, it should also provide data encryption.
- Data backup: Solutions should incorporate some method of multiple servers spread over numerous locations to improve risk factors and ensure protection.
- Flexible permissions: As noted, one of SaaS's best benefits is its flexibility in permission management. Depending on the application, different levels of access based on a person’s role or need for information should be possible.
- Analytics: As with anything in SaaS, having methods to measure the overall functionality and effectiveness of tools (including the risks associated with that data) is critical. Look for solutions that offer a wide range of analytic tools, including those that track a project’s progress.
Additional core features include two-step authentication, disaster recovery, and document access rights. Look for those that offer granular user permissions, IP location restrictions, and time limitations.
Challenges and Considerations
For those seeking to implement a higher level of security into their operations, working with a SaaS provider to create a customized solution makes sense. However, depending on the size and scale of the project, it can be somewhat challenging, especially in situations where there are budgetary requirements.
Also, note that today’s VDR must be able to meet compliance and regulatory oversight depending specifically on the industries involved. Since data security is so critical today, SaaS companies must develop solutions that are often evolving to minimize further threats but to continue to meet demands. Even when significant software goes down, like the recent CrowdStrike update, security in VDRs must be maintained.
Utilization of VDRs Makes Sense, and SaaS Solutions Create Results
SaaS plays a big role in the overall success of security solutions necessary to create and maintain VDRs. Developers must create solutions that apply to the specific needs of the end-user and that could range widely. With robust solutions available, companies will find the support they need.
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Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders.
