Business data privacy is a concern of grave importance for any firm organization in this fast-paced business world. If a business loses its confidential data to external parties, mostly hackers, things can be ugly. In fact, Yahoo is the biggest example of one of the biggest data breaches in history, which affected over one billion users. Imagine, how hard would that have hit the company?
So it is imperative that businesses need a highly secure platform, such as a virtual data room, to keep their business data safe. Virtual data room, aka electronic data room, has emerged as one of the best options for businesses to store, share, and maintain their business data with utmost security. But how would you know which data room is best for you?
Fret not — further we’ll mention some basic yet very helpful factors which you should consider before choosing data room software for your business.
What is a virtual data room?
A virtual data room is a cloud-based (virtual) space that allows you to store and share data with maximum security. Online data room software makes things easier for businesses to share data internally (employees, teams, directors, investors, stakeholders, etc.) and externally (clients, auditors, buyers) in a secure manner.
Data room services are very commonly used by law firms, private equity firms, ICT firms, financial and investment banks, mergers and acquisitions, and many other sectors.
How to choose a virtual data room for your business: 8 important tips
Before you start approaching virtual data room providers, it is essential to identify why you need a data room for your business. That is, how can an online data room help your business? Does your business need it just for storing or sharing documents? What other features do you want your virtual data room to have?
Once you are done with it, here are some important features offered by the best data rooms. Consider them when choosing your solution..
1. Document control
Every virtual data room provider doesn’t offer the same level of control on data access. Virtual data rooms are supposed to give you control over who can and cannot access a specific file(s) according to their responsibilities. Therefore, always make sure that the service provider you are targeting offers this feature.
2. File size limit
Generally, you might assume that you can upload any data file of any size in a virtual data room. However, that’s not the case because most of the service providers allow you to upload files/documents up to 300MB. So if you think your data files are bigger in size, make your VDR provider offer this feature.
3. Customization
The level of customization varies in different virtual data room providers. For example, if you want extensive document type approvals or advanced user management features, make sure your VDR provider is offering those features.
4. Dynamic watermarking
Dynamic watermarking is another amazing and highly sought feature in virtual data rooms. Dynamic watermarking is basically a customized/individualized identifier that makes it impossible to change or alter a document/file without any traces. That means it is easy to trace the individual who edited or altered the files. Honestly, this is a must-have feature for your business.
5. Data security
Data security is the core reason why any business wants to use a virtual data room. Of course, data security is an integral feature of any VDR software as it protects your business data from any unauthorized access. While you are looking for different options, make sure the data room you choose has data encryption and a multi-authentication feature.
6. Data room comparison
Comparing different virtual data room providers is a must-do thing. There are plenty of them in the market but search for the best data rooms available. Compare their features, pricing methods, customer support, etc.
Apart from that, look out for virtual data room reviews on the internet or ask industry experts around you. This will help you understand which VDR provider you can trust.
7. Pricing
While you make a list of features you want in your virtual data room software, don’t forget to consider the cost of those features. Do you have enough resources to pay for a VDR? Apart from that, various virtual data room providers offer different pricing models depending on storage needs, available features, number of users, number of documents, etc. Choose the one according to your needs and budget.
8. Free trial
Testing online data room software before buying will allow you to determine whether it suits your business or not. Most of the VDR providers offer free trials, and make sure you use this option.
Final words
Virtual data rooms are usually a one-time investment. That is why it is important to make sure what your business needs are and which online data room software can cover those. If you are confused about how to choose the best virtual data room for your business, we hope the above-mentioned tips can help you settle on a perfect option.
