Virtual Data Rooms Transforming the Business Landscape

This is a guest post by Firmex. If you are interested to guest post in this blog, just head over to the Guest Post Guidelines.


Targeted online attacks on businesses are growing in sophistication and becoming increasingly more common, affecting everyone from law firms to energy companies and even the security firm RSA. In March, 2011 USA Today reported that a group of hackers had targeted multiple high profile executives through automated Google alerts. Their goal was to insert malware that would steal passwords and gain further access to information across internal networks. The following month, The Globe and Mail reported that four top US law firms had fallen victim to cyber attacks originating from China. The attacks were aimed at stealing sensitive data relating to high value mergers and acquisitions. Hackers used email to pose as a partner working on the deal and embedded attachments that contained malware, successfully infecting dozens of computers and comprising several sensitive documents.

To help protect against this, many firms are now seeking encrypted alternatives for secure communication and document exchange and discovering the benefits of cloud computing. Organizations that require higher security are reengineering their networks in ways that limit the ability of hackers to infect users, including storing documents using secure third party facilities. Storing files in ‘the cloud’ limits the ability of an infected computer to spread the infection to other computers, or corrupt sensitive documents.

data room

Image: twobee /

In particular, the use of virtual data rooms has grown exponentially. Virtual data rooms are widely considered to be a much safer alternative to traditional file sharing tools, such as email. The issue with email is that as it travels from its starting point to its end destination, it traverses an untold number of servers and can be intercepted and viewed by virtually anyone with the proper technological know-how and desire. In contrast, virtual data rooms allow authorized end-users to share documents without having to rely on programs to run on the end-user’s server – making malware based attacks impossible.

The strict security controls surrounding virtual data rooms even make them a more viable option that other cloud computing solutions, such as generic file sharing programs. The virtual data room provider Firmex, for example, uses bank level SAS 70 Type II Compliant Data Centers, protected by 128-bit SSL security certificates for data encryption, anti-virus and anti intrusion applications, and an industry top-rated application firewall that actively monitors user behavior to ensure it is within the acceptable parameters of use. Any unusual behavior is flagged and the user session is terminated automatically, giving administrators complete peace of mind that their sensitive data is protected and being used appropriately. Firmex data rooms are also SaaS-based, enabling business professionals to login from wherever the Internet can be accessed, without having to install and maintain costly servers and software.

As the number of corporate cyber attacks grow, businesses will increasingly turn to virtual data rooms to conduct their most confidential business transactions.


About the Author: Firmex is a cloud-based virtual data room service provider that facilitates secure document sharing across corporate firewalls. Our data rooms are used for highly confidential transactions seen with M&A, Corporate Finance, and Procurement, as well as Regulatory compliance and Governance processes. To learn more about the security benefits of a virtual data room, visit Firmex.

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Related posts:

  1. How to Manage Your Company’s Online Reputation in the Wake of a Data Breach
  2. TrueCrypt: Protecting Data The Free Way
  3. How to Use Kaspersky Virtual Keyboard Against Keylogger


  1. Dave says:

    I am a frequent user of virtual data rooms in my daily business. I work with companies and their private financial information, and I can attest that my clients are more comfortable sharing more of their information when we use this option.

    To improve the security of the data, anybody that can access the virtual data room, or “e-room”, must be invited and can only access the room via a RSA SecureID secured passcode (which changes every 60 seconds). This puts everyone at ease about the security of the data, although it does get frustrating when you are signed out after only 5 minutes of inactivity.

    I would highly recommend anyone who works with proprietary, sensitive, and/or private data on a usual basis look at this as an option to better serve your clients.
    Dave recently posted..Natox – Learn More About This Alternative to BotoxMy Profile

  2. Cass says:

    Email is a great communication tool but yes, it is not a very safe one. I do not have advanced knowledge on technologies such as this. So it is very helpful to know a safer option to protect virtual data especially those that are very confidential.

  3. Jimmy says:

    You should also check out their video tour of Virtual Data Rooms and Document Sharing here:

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