Most experts in business and IT security agree that data room services are now the safest means of scoring commercial deals. Demand breeds supply and today’s market seems to be overloaded with VDR providers. You will come across a broad range of them, each offering different functions and prices. But picking a suitable one with due security measures and support may present quite a task.
The thing is that you will need to draw a thorough data room comparison before deciding on this or that VDR. Which criteria to check while searching for a reliable provider? Let us unscramble the whole matter of VDR and show you how to keep your data protected.
You can regard any virtual data room – what we often call a VDR – as an online data bank. With its help, you can forget about storing papers throughout your office with a number of employees responsible for keeping them safe and available at whatever time.
The data room software is elaborated so that you can not only keep your important documentation in order but also ensure its protection against all kinds of theft. You may not think about it until you plan such a serious transaction as an M & A deal or an involvement of new partners with venture capital. Operations like these require thorough attention to the security of data sharing, and VDR techs have become the best solutions for this so far.
Yes, data room providers vary much in the services they provide, in customizability and usability, in price patterns, etc. One may mentally divide them into two big categories: traditional and modern.
Be aware that there is a popular misconception with such services as Dropbox or Google Docs. Although applications like these are handy at file-sharing, they may not ensure the same level of data security as VDRs do. Moreover, their functions are limited and do not include services necessary for negotiations, audits, and so on.
These virtual data rooms were invented specifically for M & A transactions with large businesses. The procedure of mergers and acquisitions involves due diligence with exchanging large pieces of sensitive data, and in the past, it was a pretty protracted operation. Thus, the pioneer VDR providers were used for secure and faster data sharing.
Thus, such traditional providers of electronic data room soft as Intralinks and Datasite will offer you truly massive opportunities together with fairly high prices. Their real drawback might be their overcomplexity. You may simply not need most of their functions!
We call a provider ‘modern’ when it came into the market in the last decade. The top pop names here are OneHub, SecureDocs, and Ansarada. They serve as a nice example of how VDRs have been technically improved with time.
Their main advantage is a cheaper price. But it does not mean that modern VDRs are worse than their forerunners. Inversely, a modern data room’s key features are high standards of security and more than sufficient handiness. Moreover, these VDRs differ in special features that can be essential for this or that specific purpose. Thus, you can select the exact VDR you need without excessive functions and for a more affordable price.
Mainly, the right VDR is the one that can ensure your data security. However, you should consider other factors important for your success. Be sure to measure your company’s needs first of all as well as the type of transaction you plan to conduct via a VDR. Additionally, be sure to inspect the following features:
An important step in every data room comparison is checking the software your targeted provider employs. Look through its main functions so that you do not choose a VDR that won’t be able to supply you with the exact service you need! Check how many tools it offers in general. They must include at least such features as:
- multifunctional protection instruments;
- Q&A module;
- redaction tools;
- real-time reports;
- auto- and reindexing, etc
A reliable VDR provider is sure to place its portfolio readily available on its website. So you should not torture yourself trying to find the info about its experience in the industry. Mind that new providers do not necessarily mean bad service quality. However, when a complex transaction is on your mind, stick to more experienced operators with VDRs capable of exercising tough tasks.
Do not miss data room reviews from client companies that have closed a deal with the help of your targeted VDR. These messages are very informative because you can get to know important details and possible drawbacks of the collaboration with this provider beforehand.
Round-a-clock support is a must for VDR operators. However, be sure to discriminate common services of training and problem solving from the all-inclusive service. The latter is what you should opt for when you wish indeed reliable protection for your documentation.
There are minute things you should also pay attention to when selecting a proper data room. Not to feel frustrated with your chosen operator, be sure to factor in the following:
- Too cheap service. Do not buy too sweet offers as they may signal the VDR’s limited functionality!
- No added features. A too-small list of functions may cause problems during your deals. The absence of email upload or redaction can do a bad turn for the whole operation.
- No free trial. The best data room operators will open you free trial access to their services. Thus, you will be able to practice everything with your own hands.
Online data room software is now the key instrument for secure storing and sharing sensitive data. Surely, you should properly estimate your company’s needs as well as compare various providers before you choose the very VDR that will bring you success. Follow the simple recommendations of this blog and you will never fail with your choice.