Security Is the Prime Directive
While cloud storage is one of the most popular digital archival conventions, it is not effective when it comes to business platforms. Most providers do not offer the dynamic access options most businesses require.
Unlike the cloud, a virtual data room requires heightened protection and is geared towards commerce. As such, confidential material such as trade secrets, income tax returns, contracts, intellectual property information, employee information, financial statements and other vital documents must be encrypted.
Moreover, additional security measures such as two-step authorization, dynamic watermarking, customizable Non-Disclosure Agreements (NDAs), permission-based user roles, and a secure server must be incorporated in order for the virtual data room to be successful. Depending on the service provider, virtual data rooms can be customized to meet the needs of enterprises.
Customization offers the ability to effectively manage customer’s files or un-disclosed documents. Access can be set only for authorized employees, personnel or users. Sometimes companies will provide users with view-only permissions secured by specific dynamic watermarks. These watermarks are overlayed over all viewable documents preventing the unauthorized distribution of material.