Businesses across the globe are opting for eco-friendly initiatives that help them save time, money and enhance productivity. Business operations involve sharing, storing, and analyzing data-driven reports that require a more secure platform. That’s where virtual data rooms have quickly become an automatic option for businesses around the globe.
As a matter of fact, the stats show the VDR market is projected to reach $3,596 million by 2026, growing at a CAGR of 13%.
Online data room software has completely revolutionized the way businesses are operating these days. So, what’s fueling the growth of the electronic data room market?
Let’s take a look at some of the interesting facts about the VDR market and how data room software is catering to the needs of today’s business world.
How are electronic data rooms helping businesses?
Is it the time now? Do you really need to invest in online data room software?
Let’s find out how virtual data rooms solve the challenges businesses face; perhaps that’s what is driving the growth of the global virtual data room market.
1. Enable due diligence
Due diligence is a crucial aspect of every major transaction (e.g., M&As) that involves taking certain actions to meet legal and other requirements.
Did you know that over 80% of organizations identify third-party risk after conducting due diligence?
Without a doubt, the whole process is an overwhelming endeavor, but companies using electronic data rooms are having much less difficulty.
That’s because due diligence virtual data rooms have the ability to record the tiniest edits, changes, deletions, and additions.
Plus, VDR offers access management, so you have full control over who can access data room services and what documents they can view.
Also, it is expected that the global VDR market will generate a revenue of $3.66 billion by 2027, VDR popularity demonstrates its importance in today’s tech-driven business environment.
2. Help to store and share files
According to a research report of workers and IT professionals by IDC, document challenges account for almost 21.3% productivity loss. Also, it often gets hard to find the right file or document in need of an hour.
Having robust data room software makes the sharing, storing, and collaborating with employees, clients, etc., hassle-free.
Often people confuse VDR with traditional file-sharing platforms, but it’s a lot different as only authorized members can access the VDRs.
3. Save financial resources
Businesses are always looking for ways to cut down costs while improving efficiency. Online data room software has eliminated several costs that come with storing physical documents, such as paper, printing, clippers, stationery, and storage space costs.
Moreover, financial transactions are easy to manage with virtual data rooms as you can easily track and monitor every transaction.
Global VDR market regional analysis
The global VDR market is segregated in several regions, including the Middle East, Africa, Asia Pacific, South America, North America, and Europe.
Also, in terms of global market share, North America tends to hold a substantial share owing to the developed economies in the region that participates in M&As, fundraising, and joint ventures.
What’s more, the Asia Pacific market is also growing at a significant rate. That’s because many businesses are now adopting virtual data rooms for data management operations.
Also, manufacturers are now using cutting-edge technologies such as machine learning and blockchain to strengthen the level of data protection.
How to choose the best data rooms for your organization?
Yes, data room software is a powerful tool that can help you scale your business. But, choosing a “wrong” virtual data room for your business can actually backfire.
With so many vendors out in the market, it can be a little daunting to choose the right solution for your business.
Hence, you need to compare virtual data rooms to pick the one that best fits your business requirements. Here’s a little sneak peek of what you should take into account before choosing one:
- You need to analyze your business objectives and needs and what you are aiming to achieve from the electronic data room.
- Features that are of utmost priority
- Budget.
- If the solution is easy to use since not everyone is tech-savvy.
- Easily integrable with other apps and operating systems.
- Checkout the customer support service of the data room vendor.
Also, if you would like to explore more about virtual data rooms, https://virtual-dataroom.org/ give this a read. It has all you need to know about VDR.
The takeaway
In a nutshell, if you want to scale your business, enhance work engagement, boost efficiency, and possibly reduce the number of redundant activities, online data room software has to be your next business priority.
Albeit opting for digital solutions is a must to keep up with today’s business environment, it’s imperative to determine what you are trying to achieve from VDR.
Take your time; map out all the workflow before choosing the right virtual data room for your business.