Regular work with data requires constant innovation. Therefore, at all times, representatives of every industry that directly processed a lot of information needed better tools and a more modern approach. As the amount of data increased, it was necessary to change the approach to working with this resource.
Today, this solution is VDR, a modern format for storing and transferring data that combines all the necessary elements in one place. In addition, there is specialized storage, such as the data room for investors, which is aimed at solving specific client requests.
However, the current format of virtual data rooms, which are now offered by hundreds of vendors, was not designed that way from the very beginning. Therefore, below, we propose to consider the key milestones of the VDR idea’s origin and development with an assessment of potential perspectives.
The Origin of the Idea: VDR and Military Intelligence
The idea of a data room as a highly secure repository for confidential documents originated in military intelligence. This aspect surprises many people, as it is difficult to imagine how such a universally useful resource was first developed for military and intelligence purposes.
Participants in intelligence operations and the military needed a protected environment to ensure the confidential status of all classified information. Initially, these were classic physical vaults, but the idea of developing a secure virtual data room attracted the attention of many at the time.
The Era of Greater Accessibility: Expanding Boundaries and Opportunities
A useful idea will always attract a large audience. The same happened with the concept of data storage. The need for reliable and controlled exchange of information, transfer of important documents, and protection of files from unauthorized access was becoming more and more noticeable in society.
The overall corporate culture required change. Previously, employees had to use affordable floppy disks or more modern CD-ROMs from Sony. However, these options also had several negative factors that prevented the efficient storage of information. Hard drives and flash drives have brought more possibilities, reducing the number of physical copies in the physical storage.
The Crucial 1990s and the First VDR Versions
As we know, the end of the 90s symbolizes a turning point in the development of virtual storage. In the early 2000s, developers presented the first version of the due diligence virtual data room to the world. The first pilot format was intended to provide potential clients with a secure virtual space for the safe exchange of information.
When the benefits of such a format became apparent, the experts took an appropriate course of change: new encryption methods, increased accessibility for diversified companies, working with new types of operations, and integration of large-scale cloud storage.
The operation of the software was significantly affected by Internet connection speed, technological support, and other factors that also required changes. Therefore, we can say that the development of VDR was a set of measures at different levels.
Current Status: VDR as an Edge Business Solution
The active improvement of this software solution has made the virtual data room, in particular the M&A data room, one of the available ways to increase efficiency, productivity, and economic growth. Today’s users can get a full spectrum of services according to their needs or industry requirements.
The developers of virtual innovative solutions faced the main task of removing this barrier of limitation and turning an advanced technology into a commonly available option for everybody. Therefore, providers have made every effort to create the most specialized tool that would be the answer to the issue of competent information management. Today, users can choose a VDR based on the following parameters:
- Industry-specific (from pharmaceuticals to real estate or tourism);
- A business request with a particular task (for example, an audit);
- The amount of available memory;
- Number of active environment administrators, etc.
Apart from a wide technical range, vendors have stabilized virtual data room pricing, which has had a positive impact on attracting customers of different economic levels. Therefore, all business representatives – from startups to large corporations or even government institutions – can integrate the latest set of data processing instruments into their business ecosystem if they wish.
Assessment of Virtual Landscape Prospects
According to current expert estimates, the virtual storage market is expected to grow to $5.51 billion by 2030 under positive conditions. That means we can easily estimate that the demand for this software solution will only increase. This is understandable since the best virtual data room will not only systematize all corporate information but, in addition, improve collaboration culture and speed up the conclusion of important business deals.
With this in mind, we can assume that the virtual storage landscape is going to undergo further changes. This may include more active use of AI at various levels, development of better security protocols, and cooperation with other software applications, which will make VDR more consolidated for customers.