The global network is becoming the standard way of exchanging data, executing projects, concluding deals, meetings, and more. E-mail and peer-to-peer networks are gradually becoming a thing of the past as new alternatives have emerged on the market. The best data rooms provide not only the speed or volume of the transferred files! They guarantee their security.

In terms, VDR is a virtual data storage that allows you to share it with third parties through rules for setting access. Data room software allows you to set different access rules for different project participants and teams. Users can log into the system by entering a username and password. It is security that distinguishes specialized VDRs from public ones.

Virtual Data Rooms: Areas of Use

Applying to a virtual data room provides all stakeholders a centralized access point. Besides:

  • Mergers and acquisitions (M&A) are the most common use of VDRs. This way, the complete security required during the completion of the transaction is ensured. These business transactions comprise a large number of confidential documents;
  • To build and maintain business relationships, frequent data transfers are required. Virtual data rooms provide storage and make documents readily available;
  • VDR also helps to audit compliance with various regulatory requirements. This process is often a challenge as employees must go in touch with external regulators. Currently, many holdings expanding their business open additional offices around the world in different time zones;
  • Let’s move to the initial public offering (IPO). It is a complicated task that entails an incredible amount of paperwork. As with auditing, transparency is vital. Companies must create, share, store and manage a huge amount of complex documentation. Due to the nature of the transaction, most users will have limited access, such as view only. Copying, transferring, or printing may be prohibited.

Online data room software is a safe and reliable way for all interested parties to view and exchange documents during negotiations. It is worth noting that modern safety standards are very high, and they continue to grow. VDRs offer a way of exchanging data that fully complies with these references. Virtual data rooms are easy to interact with, secure, and versatile. Moreover, they offer interoperability between multiple parties without computers and servers. It is relevant for a single company and for several companies that work in the same direction.

Best Data Room Vendors

Fortunately, today every company can choose VDR according to the set of features it offers. Each provider focuses on the features of the developed VDR and seeks to improve them. Best data room providers offer diverse pricing policies, software specifications, a set of services, support tools, etc. When choosing a VDR for your company, evaluate the ability to manage requests, the speed and convenience of downloading files, and the ease of document management. The leading virtual data room providers are:

  • iDeals;
  • Fordata;
  • Intralinks;
  • Merrill;
  • SecureDocs;
  • FirmRoom.

All of these companies have a wealth of experience in the field of M&A, and the solutions they offer are rich in functionality without compromising security. They also allow you to download and store large amounts of data. The price for their data room services is quite high, as it is formed on a per-page basis and charges for additional users.

Comparative Analysis & Brief Data Room Review

It should be noted that there are no unique differences between the VDRs. They are all united by the priority of safety. They comply with the standard for electronic financial transactions – 256-bit AES SSL encryption and require multi-factor authentication. Let’s compare virtual data rooms:

The Aspect to CompareiDealsSecuredocsIntralinksMerrillFordataFirmRoom
PriceBegins with $210 per month. You can buy an annual subscription. Begins from $250 per month. You can buy an annual subscription.Starts at $180 per month.Begins with $200 per 30 days.Begins from $190 per month. You can buy an annual subscription.Begins from $400 per month. You can buy an annual subscription.
SupportingEmail;  phone; live chat.Email; phone.Email;  phone.Email;  phone.Live chat; lettering; info section; phone.Live chat; lettering; info section; phone.
Platform AvailabilityOnlineOnlineOnline & DesktopOnlineOnline & MobilesOnline; iOS; Android
Trial PeriodYesYesPer requestPer requestYes30 days

Data room comparison shows that all VDRs give the owners of documents the exclusive right of control. For example, he can deny access to the second person at any time, even if he managed to download the file. There are possibilities for installing dynamic watermarks, which will be reflected on each file loaded in the VDR and can save information about the download date, project name, and even the name and even IP address of the person who downloaded the file. 

Providers also took care of all categories of users. For example, if you need a VDR once, use services that provide storage on a time basis. If you plan to use VDR regularly for a large number of transactions per year, then purchasing a subscription is your choice.

VDR Extension: Near Future Trends 

As long as there are security concerns, the best virtual data room providers will continue to improve their software to address them. Security is the head concern that this technology seeks to provide. There are many ways to transfer large amounts of data between users. Though a single wrong move can send it to hundreds of people, it was not intended for.

In the future, VDR will experience competition for which service will offer the most security and additional functionality. Chat functionality will become more prevalent. So important meetings do not need to be held on public platforms, which often suffer from connectivity issues and lack security features.

To Conclude

The main task of the VDR is to provide users with the ability to make vital decisions collectively, regardless of the location of all participants. This task requires the exchange of information in complete safety. However, the sent digital data must also be safely opened on any device of the recipient. These are the questions the data room providers are working on.

About the Author

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Mirko Humbert

Mirko Humbert is the editor-in-chief and main author of Designer Daily and Typography Daily. He is also a graphic designer and the founder of WP Expert.