Data management and preservation practices have evolved with time. From keeping paper records to onsite computer storage to cloud-based solutions, data management has become unbelievably easier and more efficient. Modern-day businesses are rapidly moving to cloud-based solutions such as online data room software due to their cost-effectiveness and other benefits.
Virtual data room technology has become a leading force in the field of online data management. The VDR industry has crossed the billion-dollar mark and is well set to hit the $3 billion figure by 2026.
But how to choose the right VDR provider? Find the key features and the data room comparison below.
4 key elements of a virtual data room
When it comes to hiring virtual data room providers, there are some standards that every buyer must know about. Here are crucial elements to assess when choosing the data room software vendor.
1. Strong digital presence of a vendor
As the data room market has grown, data room scams have become a potential threat. Anyone can create a convincing website and may start offering cloud data storage services. Here is how you can avoid such scammers:
- Run a complete audit of their websites. You can start by checking out their packages, features, solutions, and pricing. Then, you can ask for customer reviews. Scammers can buy fake reviews, and the best way to find out is to track and talk to the users in person. Fake reviews are not traceable.
- Read customer reviews from renowned platforms. If you feel that a vendor’s website looks suspicious, you can turn to highly recognized online data room software review platforms like Dataroom-providers.org, Capterra, G2, or TrustRadius. These platforms only publish fully-verified customer reviews.
2. Data room vendor certifications
It is better to invest a few thousand dollars in secure data management platforms like VDRs rather than pay millions in fines. Unfortunately, many organizations still don't understand that secure data repositories are not an expense; they are your assets, says Ronald Hernandez - Founder dataroom-providers.org. Read more about top virtual data room providers and valuable insights related to VDR technology at https://dataroom-providers.org/.
One of the most important benchmarks for an electronic data room provider is to be certified by certain global and regional bodies.
Certifications are further divided into two categories — regional and international; both are important. For instance, a real estate company or a business that belongs to the financial sector in the US must use a data management service certified by FINRA.
Similarly, businesses associated with life sciences or healthcare in the United States must be HIPAA-certified. Make sure your desired vendor complies with your regional regulatory authority. Other vital certifications include FISMA, SOC (1,2,3), GDPR, and ISO.
Certified virtual data rooms are not only safe, but they take off the burden of complying with regulatory authorities in your region.
3. Vendor’s industry experience
A lot of users make the mistake of hiring service providers based on their general reputation. However, it is important to understand that data room services have become more and more industry-oriented.
Many virtual data rooms like SecureDocs and Digify are employed mainly by small-sized companies. These vendors can manage small-scale transactions, and using them for bigger M&As may be ineffective.
Similarly, all service providers are not equally efficient in serving different industries. For example, Merrill is particularly famous for corporate development projects and M&As, while iDeals VDRs enjoy a reputation in the legal sector, life sciences industry, financial sector, and board management.
There, when you compare virtual data rooms, make sure they have everything needed to operate in your industry.
4. Focus on virtual data room security
The security of virtual data rooms is a vast subject; the more you invest, the safer the VDR. However, it is unwise to strive for advanced security features if you don’t really need them. Here are a few notable security features and their benefits.
- Two-step verification. It is a relatively common security feature but is highly effective in minimizing unauthorized logins. Two-step verification is a must-have feature.
- Document access control. The ability to control or set users’ access in the data room is mandatory. You must be able to restrict someone’s access in the data room just the way you like. It includes setting access restrictions on printing, sharing, downloading, copying, editing, or removing data from the VDR.
- Device purging and removal. Modern-day virtual data room vendors allow you to disintegrate or delete a device from your VDR. What’s more, you can also delete the files downloaded or browsed from the platform.
- Fence-view mode. The Fence View is one of the latest additions to VDRs, but it is ultra-effective during external data sharing. The feature allows you to hide or blur portion(s) from any document while leaving the rest available for viewing. Fence-view mode plays a vital role when sharing data during IPOs, M&As, etc.
Summing it up
A certified, secure, and experienced virtual data room provider is like an asset to your company. It helps you deal with compliance requirements and provides a safer environment for data sharing and collaboration. iDeals, Merrill, Caplinked, and Ansarada, are some of the best data rooms to consider.