Virtual data rooms have gained immense popularity in business spheres due to their premium digital security features. When it comes to sharing and protecting data in dealmaking, IPOs, fundraising, and similar transactions, virtual data rooms immediately become the first choice for businesses.
However, one of the most important things in your virtual data room journey is choosing the best virtual data room for your needs. The next question is, how do you choose the best online data room services? Or what to look for in a virtual data room provider?
There is no vivid definition of the best virtual data room because every business has its unique requirements or needs. What should be in a data room solely depends on how you intend to use it. Still, the following are the key features to look for when selecting a virtual data room.
1. Security
Online data rooms are secure document repositories used for sharing and managing large volumes of data in a secure and controlled environment. It is obvious that security is a fundamental element in online data room software.
The extent of your data room security depends on the number of features you want to have. Again, it depends on your requirements and what you want to achieve through a VDR. Following are some key features for the best security for virtual data room.
Whenever the best data rooms are compared, VDR security always remains a key factor. Therefore, when you conduct a data room comparison, make sure you go for VDR with the best security.
2. Compliance
In addition to security, it is important that the VDR you choose must comply with your regional or governing bodies. Organizations and industries are regulated by local, regional, or even international bodies. Some compliance certifications are compulsory, while others are optional.
For example, businesses operating under the supervision of FINRA must have FINRA-compliant information management systems. Such businesses, if they choose to hire virtual data room services, must go for a FINRA-compliant data room vendor. Similarly, companies operating in the European Union must go for a GDPR-compliant vendor.
Other important certifications for data room providers include HIPAA, FISMA, ISO, PCI DSS, and SOC1 & SOC2.
3. Deployment
Considering the deployment options is vital when choosing an online data room software. When it comes to diversity in deployment, not many VDRs are up to the mark. In fact, even some high-end data rooms provide very limited deployment options, while vendors like iDeals Solutions allow deployment on almost every renowned global operating system.
First things first, look for a digital data room that you can also operate through your smartphone or tablet. Second, it is better to have a VDR that offers a variety of deployment methods so that you can easily switch if your business decides to change its operating system.
Look for a VDR that can be deployed on famous operating systems like Windows, Linux, iOS, macOS, Android, etc.
4. Virtual data room pricing
Virtual data room pricing is one of the most important and commonly overlooked matters. It is unfortunate that many data room vendors often have hidden charges. Apart from hidden charges, it is important to understand the pricing models of the vendors to make the best decision. Here are some commonly followed virtual data room pricing methods.
When assessing how much should a data room cost, businesses must consider not only the pricing structure but also the value they derive from the services provided. Evaluating the specific features required for your operations can help determine whether the cost aligns with your budget and needs. Keep in mind that while a lower cost may seem appealing, investing in a more secure and compliant virtual data room can save you from potential data breaches and compliance issues in the long run.
The flat monthly fee model is better for long-term usage, while other options are handy for short-term projects. Per-page pricing is only beneficial if you intend to share a small number of documents.
Summing it up
The virtual data room selection process can be overwhelming, especially if you aren't familiar with this technology. Some of the key features to consider when choosing an online data room software include VDR security, compliance, deployment options, ease of use, simple user interface, virtual data room pricing, and free trials from the vendor. Lastly, don't forget to read virtual data room reviews from trusted platforms.