Friday, September 23, 2022

What is a data room and why you should care

The term “data room” may signify so many things. This can be a physical deal room in which piles of paper docs are checked and deals are closed or not closed in the end. These may be storage clouds used for safekeeping and exchanging data.

Only a real virtual data room combines all these features and allows secure transferring of all business transactions to the online mode. There are various types of data rooms and services we mistake for VDR. Let us clear up the matter once and for all. How it all works and which advantages of virtual data rooms might be the most beneficial for you are key points of this blog.

VDR or not VDR?

An electronic data room is multi-component software. Its main functions include storing, sharing, and protecting data from unauthorized access. It is used for various types of interaction with business partners, lawyers, etc.

Although the definition is clear, there is much confusion with VDRs. This complex equipment is commonly confused with less functional cloud storage services and such likes. Compare the following brands:

Top virtual data room providers

·         Ansarada;

·         BrainLoop;

·         CapLinked;

·         Digify;

·         IDeals;

·         IntraLinks;

·         Imprima;

·         Merrill Datasite;

·         Secure Docs;

·         V-Rooms;

·         and others

Not VDRs:

·         Google Drive;

·         Egnyte;

·         Microsoft One Drive;

·         DropBox;

·         pCloud;

·         Open Drive;

·         and similar cloud storage services

VDR top features

Why should your business bother with data room software? Using it will optimize your deals and make them secure. You and your partners won’t need business tours anymore, so it will save you a lot of time and money. You can enjoy all these advantages thanks to  the following top-useful data room services:

Security options

Keep all the matter under control with the help of two-factor authentication, cutting-edge encryption techs, and other anti-theft soft.

Access options

Define the level of access for each user. You can prevent copying and viewing sensitive data like phone numbers, addresses, etc. via such features of virtual data rooms as redaction.

Audit Logs

Monitor activities and data of all users that have access to your VDR. Thus, you will be able to prevent safety threats as well as enhance the work of your dataroom.

Customizable interface

Upload documentation in all popular formats and manage it quickly and securely. At any moment, you and your partners will be able to find any file or even a necessary line in the text thanks to the In-text Search option. You can classify your docs according to the transaction’s requirements. For instance, you can utilize the due diligence checklist feature to request or offer the necessary documentation in the most adequate way.

Support

The best data room providers offer responsive Customer Care that works round-the-clock and is quick to solve any problems. They include not only the trouble of setting up the VDR you have just purchased. These must be any difficulties that you may encounter during transactions as well.

What is the best VDR provider?

When most VDR vendors can boast the above-mentioned features, can you pick just any of them? If not, how to choose the most suitable for your business? It may seem intricate; however, you can easily define the exact provider your company needs. Simply remember the data room comparison rules:

1.      Be sure to pick a top-class provider with both a positive image and solid experience in the industry. Examine websites of all targeted VDR vendors and read reviews from experts and clients.

2.      VDR providers differ in their options efficiency, that is, some of them will perfectly fit large businesses, others – smaller ones, while some of them can satisfy businesses of any size. So, choose the provider that can fully meet the needs of your company.

3.      Virtual data room pricing is an important point and you can expect a flexible approach from indeed nice VDR providers. However, do not buy too cheap or free services, especially, when you require a high level of functionality from your VDR.

4.      Some VDRs offer so many tools that it might be difficult to manage them. Opt for those of them that have easy-to-maintain interfaces without excessive instruments.

5.      To understand how handy all VDR’s tools are, you need to experience everything in this VDR for free, that is,  you need a free trial. And the top virtual data room providers are ready to offer it for you. Be sure to use this option and skip data rooms that do not support it.

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