Software & Tips

How Do Virtual Data Rooms Work

The increasing volume of data handled by modern companies requires a more efficient way of storing and transferring it. So-called virtual data rooms – a type of cloud service used to store large amounts of information – are becoming increasingly popular. We invite you to learn more about how virtual data rooms work so you can better understand the value of this technology.

How does a virtual data room work?

The basic principle behind a virtual data room is the so-called “fireproof safe”. That is, the main emphasis in the development of such storage is placed on the implementation of enhanced security for access and transfer of data, as well as its physical preservation. A characteristic feature of the virtual room design is a clear document storage structure.

VDR is also based on the principles used in the development of cloud servers. This means that it is a kind of repository, which can only be managed by identified users. At the same time, each user can be granted certain access rights. For example, user A can only view documents in folder 1, while user B can print them, move them from folder to folder and share them with other users.

Unlike the corporate extranet that is used internally, VDR does not use a firewall to transmit and store data. However, multi-stage user authentication is required for access. The system checks whether the user is authorized to perform certain actions, and generates analytics on the storage’s usage history.

Getting the virtual data room up and running

Once you have decided to implement a VDR, there are a few steps you need to take to set it up:

  1. Clearly define group roles and responsibilities. The administrator must “set up” the repository so that each user can find the document of interest in seconds. The administrator must also decide what access rights each user will have and specify this in the settings.
  2. Prepare documents for transfer to the virtual data room. Not all corporate documents may be transferred to VDRs for storage. It is advisable to carry out the selection process prior to installing a VDR and to agree on this with management and third parties who may have access to such documents. It is not only the content of the document that plays a role, but also the version that is uploaded to the repository. Once documents have been uploaded to the virtual room, the VDR options can be used to double-check the document against the storage requirements.
  3. Set up data protection in the virtual room. The hallmark of VDRs is a high level of security. The administrator can set up multi-level access to the documents, put a special watermark on each of them, prohibit all or specific users to do certain things with it – there are many ways.

Once you have prepared your VDR for a full run, you can start using the virtual data room to its full potential. Don’t be alarmed if any bugs or malfunctions occur at first – they can easily be resolved by yourself or by contacting the support team of your VDR provider.