Virtual Data Room (VDR) : What it is, How it Works

Virtual Data Room is a web platform that allows to make data available and share documents and multimedia files in a completely secure and confidential way. Virtual Data Room is particularly targeted for the organizations which require highly secured environment like Banks; but needs to allow multiple authorized users to access the data.

Understanding the function of a Virtual Data Room

A Virtual Data Room actually works on the principle of Extranet – Extranet is actually operated over HTTP like Internet but users only with muli-level authorization is allowed to access the data. Extranet authorization works on the same basic principle of a secured locker room, where physically a person identifies the user, authorizes the signature, then allows to open the double or triple key operated lock. Sometimes one assigned IP is allowed to connect to this Virtual Data Room. This IP is always a preserved IP, that is, it is never used to surf public Internet. Virtual Data Room provides a highly secure environment in which authorized users granted user verified both locally and remotely can share, review and edit confidential documents 24 hours a day 365 days a year, anywhere where they are. This makes Virtual Data Room highly useful but expensive.

Server, Network and Software of a Virtual Data Room

Usually one physical server with SAS 70 Level II compliant facility is used for one Virtual Data Room. Some high end Virtual Data Room providers uses Virtualization layers to divide the server to the same companies different positions. That means, the CEO might need a Virtual Data Room and the ordinary employee also needs to access the Virtual Data Room, this setting along with proprietary software allows the CEO to completely shield very high sensitive data to keep isolated, somewhat physically.

Advantages and Disadvantages of Virtual Data Room

Virtual Data Room is not designed for individual usage but for limited corporate usage. Quite obviously it does have the advantages of enhanced security and to the targeted consumers of Virtual Data Room, the benefit outweighs the cost.