The need for remote access to business data has helped thrive cloud-based data management industry. Businesses are going global, and it is important for them to share data in real time without compromising digital security. That is why virtual data rooms have achieved unparalleled fame in the business world.
As more and more businesses shift to virtual data room technology, the VDR market has been expanding continuously; more and more virtual data room providers are entering to compete in the market.
From a buyer’s perspective, especially those who are new to data room software technology, the selection process can be confusing. If you find yourself in the same spot, here are some important features you might want to have in your online data room software.
1. Customization and ease of use
There is a misconception that electronic data room software is a simple document storage platform like DropBox. Virtual data rooms are complete data management solutions that also provide tools for online collaboration.
VDRs allow you to upload, segregate, share, edit, view, annotate, and distribute data to hundreds of users without needing external applications. What’s more, the data retrieval and accessibility process is simpler than you think. Here are some important data access and management features to have in your VDR
● Built-in file viewer. High-end virtual data rooms support multiple file formats and have built-in file viewers — you don’t require external apps. In fact, iDeals data rooms automatically convert documents into PDFs for better viewing. Also, it is better to have a built-in Excel file viewer and editor.
● Bulk uploads/drag-and-drop. If you intend to use data room services for mergers or acquisitions, you don’t want to upload hundreds of files one by one. Make sure the VDR has bulk uploads and drag-and-drop features; this way, you will be able to simply drag files and upload them in your VDR.
● Full-text search. Full-text search is a remarkable feature that speeds up the data-searching process. You can simply find a file in a few seconds by using keywords or phrases in the search bar.
Apart from that, look out for a vendor that is willing to provide your custom packages if necessary.
2. Data room provider’s authenticity
The Internet is an ocean of free knowledge; use it to do some research on your data room provider. For example, you can start by looking for testimonials or customer reviews. However, it is hard to identify if a testimonial is bona fide or not.
One way to overcome this is to get help from trusted online data room review platforms like https://datarooms-review.com/, G2, Software Advice, etc. These unbiased platforms are a trusted source for millions of users and buyers across the globe.
3. Data room security
Virtual data room security has multiple dimensions; start with data room certifications. All high-end data room providers are mostly certified by international and regional organizations like SSAE, FINRA, HIPAA, ISO, GDPR, etc.
It is important to note that VDR vendors operating in specific countries must comply with their regulatory bodies. If they are not certified, they are not trustworthy. For instance, any service provider offering data management solutions to federal organizations in the United States must be FISMA-approved.
Second, make sure that the data room has at least basic security features, such as:
● Two-step/multi-factor authentication. Two-step verification is a highly prevalent security measure that immensely reduces unauthorized login or hacking attempts. Users can only log in after providing valid credentials in two phases.
● Device purging. Data room vendors also allow you to remove a device from your VDR. Additionally, you can also remove or purge files that a specific user has downloaded or viewed from the platform.
● Data access permissions. Being able to control and manage user access in the data room is simply uncompromisable. You should be able to restrict any user’s access in the data room as per your preferences. It may include applying restrictions on actions such as printing, sharing, downloading, copying, editing, or deleting files from the data room.
● Fence-view mode. It is not a basic data room security feature, but it is pivotal when you need to share data with third parties in transactions like M&As or IPOs. The feature ensures that users can only see the parts or content you want them to see in a file while hiding the rest.
Other important features include data encryption, digital watermarks, and self-destructive documents.
4. Customer support service
During any data room comparison, never forget to weigh the customer care services. Knowledgeable and timely customer service minimizes the hurdles in operating your data room. What’s more, multi-channel customer support is highly recommended.
Final words
When you compare virtual data rooms to choose the right one, consider elements like data room security, compliance, ease of use, customer reviews, vendor authenticity, and customer care services. Speaking of some of the best virtual data room providers to go for in 2023, these are iDeals, Ansarada, Digify, Merrill, and SecureDocs.
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