The world is changing, and for some reasons, it is changing for good. The Covid-19 pandemic, just like other natural calamities, pushed us to the edge, but as usual, we fought back. However, the pandemic changed a lot of things especially, a surge in remote jobs.
More remote jobs mean companies started looking for online platforms where their employees can collaborate easily and safely. That is why virtual data rooms (aka electronic data rooms) became an integral part of all business markets. Although the VDR market was already thriving, that “work-from-home” adage just changed everything significantly.
A surge in data rooms usage: An analysis of the past
Virtual data rooms, in the last fifteen years, have secured the top spot in some of the most used and fastest-growing business tools. They have brought people close from all parts of the world, thus eradicating all the hurdles between location, time, and place.
The growing need for online data rooms is not only theoretical, but the statistics are backing them loud and clear. It doesn’t come as a surprise that in the past few years, the market for VDRs has seen a massive surge of more than 800 million USD in revenue. Most importantly, this revenue was generated by only 240 virtual data room vendors.
According to the IBIS World report in 2016, the VDR market saw a 13.7 percent growth annually from the year 2011 to the year 2016. Another satisfying fact that stood out was the small-sized virtual data room vendors were doing exceptionally well in the market mainly because of providing more relevant and niche-oriented solutions.
What is expected in the future?
It is true that businesses all over the globe felt massive jolts, but the demand for technology is increasing with time. Not many industries have maintained constant growth in the past few years, but the VDRs market sure did. With things moving forward as they are, it is expected that by 2022, the global VDR markets will grow to 1895 million USD.
How did virtual data rooms transform businesses globally?
The stats and predictions are satisfying but do you wonder how online data room providers are actually transforming businesses all over the world? Here is what VDRs can or are doing for businesses.
1. Secure document storage
Online data rooms have simply revolutionized document storage practices in almost every industry. Not only do they store your documents safely, but it is very easy to retrieve them quickly.
Imagine traditional physical data rooms; you have to find a 5-year old document; what will you do? Obviously, you will have to go through a pile of documents to get to the one you are looking for. This not only wastes a lot of time but is equally frustrating as well.
VDRs are convenient; it is as simple as that. For example, you can easily upload multiple documents (bulk upload) at the same time. If the administration doesn’t want particular employees to access specific documents, it can set access limitations.
Furthermore, the users can access the virtual data rooms from anywhere in the world. If you are on leave but need to access a document urgently, no problem because this is what VDRs bring to the table. The ability to access data room services remotely is more beneficial, especially for the senior management, such as board members. They can access, read, download, or print any document (depending on their access level) at any time from anywhere. In short, virtual data rooms allow the users to keep the business data with them, and they can reach it in a matter of seconds.
3. Facilitation of mergers and acquisitions
VDRs are not less than a blessing for M&A markets. Mergers & Acquisitions are complex transactions involving a massive exchange of sensitive data. Virtual deal rooms are not only useful in safely keeping, organizing, and sharing data during M&A deals, but they also make the due diligence process a lot easier. VDRs allow the M&A teams to examine every vital document to avoid any future risks.
Apart from that, digital data rooms are widely used in investment banking, healthcare, education, and other industries. Organizations from different sectors use VDRs for venture capital, private equity, and loan syndication.
Virtual data rooms have indeed emerged as a core unit in global business practices. VDRs markets are growing exponentially, and the future looks more promising. Most importantly, this growth is well-deserved as digital data rooms have revolutionized businesses with secure data storage, convenience, and much more.