Virtual data room

<h2 id="application">Application</h2>
Any business dealing with private data can apply VDRs when secure transaction processing is required. This includes financial institutions that need to negotiate confidential customer information without involving third parties. VDRs have traditionally been used for IPOs and real estate asset management. Technology companies may use them to exchange and review code or confidential data needed for operations. The same is true for clients, who entrust their valuable code only to the most qualified people in the organisation. The code is not something that can be printed out and brought in a folder. It resides on a computer and must be used together.
VDR can find application in any business that manages data in the form of documents, especially law firms, financial advisers or the B2B sector. The latter work with documents that must always be handled and controlled confidentially, and it is difficult to store them securely when they are on a server that other people can access. In addition, in B2B, it is important to close the deal as quickly as possible: the average sales cycle is one to three months. VDR can be compared to a locked filing cabinet where all those folders and documents are kept. It automates the mathematics of pricing to prevent revenue leakage, and initially integrates CRM to ensure accurate synchronisation of all account data, which is important for B2B in particular and sales in general.
While virtual data rooms offer many advantages, they are not suitable for every industry. For example, some governments may decide to continue using physical data rooms for highly confidential information sharing. The damage from potential cyberattacks and data breaches exceeds the benefits offered by virtual data rooms. In such cases, the use of VDRs is not considered.<a class="footnote-ref" id="fnref:5" href="#fn:5">5</a> Data breaches have particularly affected the US healthcare system from March 2021 to March 2022 - according to IBM Security the cost of the breach was a record high of $10.1 million.<a class="footnote-ref" id="fnref:6" href="#fn:6">6</a>

<h2 id="references">References</h2>

<ol>
<li id="fn:1">"Thinking of Starting a Business? Lock Down Profits in Virtual Data Rooms". 4 April 2013. <a href="http://www.inc.com/best-industries-2013/jeremy-quittner/virtual-data-rooms.html" target="_blank">http://www.inc.com/best-industries-2013/jeremy-quittner/virtual-data-rooms.html</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></li>
<li id="fn:2">Walker, Morgan Hartley and Chris. "Virtual data rooms - pg.3". Forbes. <a href="https://www.forbes.com/pictures/fghj45fjl/2-virtual-data-rooms/" target="_blank">https://www.forbes.com/pictures/fghj45fjl/2-virtual-data-rooms/</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></li>
<li id="fn:3">"What is Virtual Data Room (VDR)? - Definition from Divestopedia". <a href="http://www.divestopedia.com/definition/836/virtual-data-room-vdr" target="_blank">http://www.divestopedia.com/definition/836/virtual-data-room-vdr</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></li>
<li id="fn:4">Buckler, Grant (21 November 2006). "A virtual smoke-filled room". The Globe and Mail. Retrieved 4 July 2016. <a href="https://www.theglobeandmail.com/technology/a-virtual-smoke-filled-room/article1110056/" target="_blank">https://www.theglobeandmail.com/technology/a-virtual-smoke-filled-room/article1110056/</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></li>
<li id="fn:5">"Virtual Data Room (VDR)". investopedia.com. Retrieved 2022-10-20. <a href="https://www.investopedia.com/terms/v/virtual-data-room-vdr.asp" target="_blank">https://www.investopedia.com/terms/v/virtual-data-room-vdr.asp</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></li>
<li id="fn:6">"Healthcare data breach costs reach record high at $10M per attack: IBM report". fiercehealthcare.com. Retrieved 2022-10-20. <a href="https://www.fiercehealthcare.com/health-tech/healthcare-data-breach-costs-reach-record-high-10m-attack-ibm-report" target="_blank">https://www.fiercehealthcare.com/health-tech/healthcare-data-breach-costs-reach-record-high-10m-attack-ibm-report</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></li>
</ol>

Virtual data room open-in-new

Virtual data room