An effective and timely solution to the problems of processing large amounts of information is the Virtual Data Room solution, which operates on a single cloud platform and is a mandatory component of effective company management. In this article, we will discuss its functionality, and prospects of development.
Why are Virtual Data Rooms becoming increasingly important?
The use of Digital Data Rooms is increasing. Global economic markets and the digitization of processes can be named as reasons. Companies are required to provide their paper documents in electronic form. Documents with sensitive and time-critical information are accessible to several participants through virtual services.
Virtualization is the provision of a set of computing resources or their logical integration, abstracted from the hardware implementation, one physical machine can support multiple virtual ones.
In many companies, working with confidential documents is part of everyday life. Virtual Data Rooms are important for companies that have previously carried out transactions and document management in paper form. These include companies from the financial sector, the real estate industry, and M&A deals. Syndicating loans or private equity are concrete use cases based on Electronic Data Rooms.
Main characteristics of the platform:
- on-demand self-service;
- universal network access;
- pooling of resources;
- consumption accounting.
Data Room providers systems ensure a simple and unified interaction between the supplier and the user, including software, the service subsystem, and a database with multiple accesses. It is a special client-server technology, which involves the client’s use of resources of a group of servers in the network, which interact as follows:
- for the client the whole group looks like a single virtual server;
- the client can change volumes transparently and flexibly consumption of resources in case of change of the needs.
Compliance requirements for internal communication make the use of Digital Data Rooms necessary. The services ensure fast, secure, and location-independent access to confidential files. This includes business reports, balance sheets, or discussion papers on PR work. The virtual data room index comprises all types of files inside the service. The administrators can upload and use their own index as a folder structure to prepare a Data Room.
What about the forecasts?
According to the forecasts of the world’s leading IT consulting companies, the rapid improvement and spread of cloud computing in the coming years will completely change the development of both the IT industry and will have a significant impact on other important areas of human life.According to experts, the potential of virtual technologies is very high.
It is assumed that there will be no mass migration of commercial structures into public Virtual Data Rooms, a complete abandonment of their own data centers is also not expected – cloud services will come to a hybrid model, where both elements will remain.
The software applications of the future will have the part that runs on the user’s computer, and the part that runs in the cloud, and the cloud share must expand rapidly to work with thousands of servers as needed, as well as shrink to work on a single virtual machine. Power management systems must be developed to enable servers to be switched to power-saving mode along with all memory and network. And this is also one of the elements of information security.
It is still necessary not only to develop a legal model for the use of new technology but also to distribute the relationship between users and suppliers, ensuring the most reasonable balance between their interests. Issues of information security of Digital Data Rooms need significant improvement, and in many respects – priority developments.