Browse Category: data room

Data room

Data room

Data room

Data room is a place that is used to save a large amount of data and the most specification of this place is to be highly secure location. This can in three types (physical, virtual and data center).

These data rooms have many uses such as storing, transferring files. Sharing financial in addition to the legal transaction is the most helpful usages.


What is data room?

The most common use is a process of acquisition which means purchasing one of business enterprise for another one and merging.

That means combining one unit into a single entity. So in these two operations, a physical data room must be found to save all data for both vendor and buyer.


Data room
Data room


Data rooms places:

We can find these rooms in vendor or lawyers offices. That advisers and experts must visit this room for inspection. That will be everywhere and every time to make sure of the security of rooms. Just one bidder is given to adviser and if he has a new document must send an as hard copy by a courier. In acquisition process team of operation have to follow the process from many places and countries that is done by these rooms.





Types of data rooms

  • Virtual data room
  • Physical data room (data center)



Virtual data room

  • It is a website that has limited access and high-level control. And to have access you must log in under the supervision of vendor.
  • It is used by companies for security and shares important data. During acquisition and merging process and big deals operations.
  • The stored document and data is a high value that also has big privacy to store it.


Virtual data room usage:

  • The reason for these companies to store document is recalling at any time for the financial and legal entity and authorities.
  • For replacing once ubiquitous physical rooms. It also costly and inconvenient and become outdated concept so it replaced with virtual rooms.

VDR benefits:

  • It can maximize the deal value by making access for many bidders within a short time.
  • Processing tools are quite quick and simpler.
  • Security; Data used is more secured with digits and the documents not allowed to be copied.
  • Efficiency; on paper during the process.
  • Compliance; by keeping definite track of individuals have done coordination.
  • A tool to make coordination of all possible communication
  • Deal Intelligence; to understand all bidders’


VDR disadvantages

  • Cannot be reachable for criminal cases.
  • For any question and answer, you entered a chat room that gives you quickly answer but not verbal clues.


In what field these rooms can be useful?

  • Technology
  • Life science
  • Investment banks
  • Legal firms
  • Equity and venture capital


Physical data rooms (Datacenter)

It is a place that has all servers that can connect to the internet and used to completely or divided into VPS servers or joint hosted accounts.


Physical rooms’ importance:

  • It provides a good environment for server works from the internet that has high speed. Also for air-condition systems and electricity lines to support by power.
  • At big companies (Google, Facebook, and Amazon), they have a huge data of their customers and users. So where these companies can save their data and make it secure. No possibility or anyone to access this data in data centers.


Key characteristics:

  • Security: data centers must be kept in non-accessible place from anyone so company. Rooms usually use all policies and procedures to prevent anyone from access this rooms. Only authorized users can access this room.
  • Scalability: the room must have the ability to grow because of business growth that requires more and more places with servers.


Performance of physical rooms:

  • Centers have the ability to provide information at the time of need, That because of avoiding the high cost of business.
  • Making sure that all data are provided in optimal performance way to require server service level.



  • Useful for small or starting business, So you will bring server and combined power source.
  • You need less experience network outage, Also have less possibility of cutting server, electricity power and air-conditioning to control your server.
  • As nature of data center which has no ability to determine when to examine your server. So collection method is the most attractive.
  • The ability to provide extra validity to save data without interrupting.
  • You can provide your server with extra hardware and software for your server growth




  • The cost of the data center is very high for infrastructure and maintenance.
  • Cost of moving from and to your center also is high
  • In case of moving center from one place to another for growth issues, that will cost you a lot of money
  • You will suffer from personal communication that leads to significantly
  • Need additional effort.
  • Location of centers and rooms are far away from VPS.




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