Virtual data rooms have been a hot topic in the business fraternity, and to be honest, they should be. Electronic data rooms have been simply revolutionizing the data storage, data management, and deal-making processes. Is that it? No, data rooms have ensured transparency, accountability, and utter ease in business spheres.
However, here comes the most important and fundamental question. Is every virtual data room good enough for your business? Or what would be the best data room for your business?
If you are facing the above-mentioned issues, fret not. We are going to enlist some important points that can help you find the best data room for your business. So let’s start with the basics.
Simply put, a virtual data room (online data room software) is a virtual space or repository that allows you to store, share, and manage any form of data related to your business. An electronic data room helps businesses with their data management needs in a safe environment.
The biggest advantage of virtual data rooms is their security measures. You can store data in any online platform, but how many of those platforms provide premium data security? This is what makes data rooms a totally safe and reliable option because VDRs minimize the risk of data theft.
Now that we know what virtual data rooms are, let’s get to our main discussion — the qualities of the best data rooms.
Secure data storage for a virtual data room is just like the heart of the human body is the core. The first and the most crucial feature of any data room software should be impeccable data security. A virtual data room must provide enterprise-grade security when sharing data internally or with third parties.
The best data room is the one with a similarly high level of security, no matter if you access them from Mac, Windows, or IOS devices. Moreover, certified online data room software always complies with international data security standards such as ISO 27001, FINRA, etc.
Is a virtual data room good enough to keep your business data safe? Well, that’s just one part. A high-quality data room must be easy to use. Most importantly, it must allow the management to keep the data in a highly organized, professional, and easily accessible manner from whichever device it is accessed.
Best data rooms allow you to save your documents with tags rather than just organizing files in mere folders. But what is wrong with a simple folder structure? A business often has to keep multiple copies of the same file in different places/folders (mostly due to hierarchical needs or due diligence).
Now there are two problems with folder structure:
- Storage cost (every copy will occupy space)
- The need to update every copy whenever there is a change in the original one
On the contrary, you can tag any document with multiple tags, and it will be visible in various locations.
We have talked about data security and ease of use; what comes after that? Accountability. Your business needs a transparent data management system, and it is only possible when there is accountability. A good electronic data room allows the management to keep an eye on who did what, when, and for how long.
For instance, a virtual data room with advanced monitoring features allows you to monitor everything with audit logs. That’s not it — a high-quality data room software helps the management with insights related to users’ document review progress. For example, if your HR team spends most of its time reviewing employees’ complaint records, the data room will let you know that they have liability concerns so that you can take a proactive approach in addressing those concerns.
A virtual data room is as good as its cloud infrastructure. Here is what best data room providers have in common:
- Location of all servers at premium quality data centers
- High-end service providers for hosting
- Availability of servers with hot-swappable components
- High-quality cooling and power systems, cables, and routers
Imagine a data room that has everything, but you cannot easily integrate it with your business system. It is just like having a high-quality weapon with no bullets- simply useless. An ideal virtual data room not only provides multiple features but can be quickly integrated with your business’s systems easily.
A modern virtual data room software must have a secure and flexible web services API so that you can easily create, configure and control your virtual data room and add it to your business workflow.
Here is the thing about the best data room providers — they truly understand your business needs and provide you with a solution accordingly. To be honest, those extra megabytes or security certificates don’t strike you much unless you feel your data room provider is connected to your business and you.
You would love to hire a service provider who understands what you need by stepping into your shoes. Last but not least, you want your virtual data room provider to help you whenever you need it, which is why a nonstop customer support service is a must.
It is high time for your business to choose a more reliable and futuristic data storage and management solution like virtual data rooms. However, make sure you choose one according to your business needs and has the above-mentioned features.