Running a business or performing due diligence on any level requires time and money, especially when it comes to maintaining the security of your confidential documents during the process. If you are planning to share data online to facilitate M&A transactions, assist in the litigation process, or simply store information for future use, it is important to ensure that the platform you are using provides you the utmost safety.
With the rise of cloud-based document storage, users are finding platforms to share data more than ever, however, some are better suited to certain industries and their needs. While it might seem easy and cheap to opt for a generic document sharing service like Dropbox or Google Drive, the trouble you can face in the future with regards to their functionality and security can negatively affect the business you are conducting within your data room.
This article aims to outline what exactly you are paying for when you invest in a virtual data room and what the hype around them is really all about. It will also discuss a few of the key differences between a VDR and a generic document sharing service so that you are able to make the best decision for your business.
Functionality: Security & Control :
When choosing a virtual data room, the best method of deciphering the right one for you and your needs is by the features it provides and the correlating price. No one wants to spend a fortune, especially if trying to run a small start-up company, so understanding what certain providers can offer for the price they charge will benefit you in your process. The main factors a VDR provider strives to offer our security and control—intellectual property, financial information, and legal documents being a few examples of the types of data VDRs store. Complex permissions settings allow an administrator to control the action by certain users within the room while features such as watermarking and disable print and download control documents from being seen by the wrong third parties.
When choosing a virtual data room, the value you get out of the experience should dictate the prices, not a bloated interface with useless features. This is especially important for businesses not as specialized as M&A or litigation—your needs should be handled as professionally as those industries, but without the cost of unnecessary features and a more notable company name. Simplicity is key and that is reflected by features such as drag and drop for easy uploading of documents and folder templates. As well as tracking and auditing to view how your documentation is being received by third party contributors in the VDR.
Additionally, good customer support is also a primary reason why a lot of professionals turn to virtual data rooms to store their important documents. They are able to contact a real-life representative to help them if they have any questions or concerns about the data room and its features. Unlike its generic counterparts, a VDR is much more organized and detailed in its features so that navigation is easier with customer service to lend a helping hand if needed.
Period Of Use :
Like any type of service, what you pay is designated by the use you plan to get out of it. When you invest in a virtual data room the period of time you spend in it is based on either the number of pages or gigabytes you need for your project. You also have the option to buy the VDR for a single-use or opt for a subscription, depending on the provider. Every VDR provider is different and their rates vary, however, some also guarantee that there will be no hidden fees in the price you sign up for. A breakdown of a virtual data room’s price and its features are usually shown on the provider’s main site so that a client can make an informed decision based on the number of pages, projects, users, and gigabytes they may need during their transaction.
Virtual data rooms offer a platform with intricate features to ensure your security and control; each provider reflecting their efficiency with their prices. Some VDRs are higher priced than others, specializing in industries that necessitate the use of a VDR, while others are designed for general corporate use for the sharing of confidential data. Choosing the right provider for you and your business needs should not be completely dependent on their price, but should incorporate an understanding of what that price will be offering you, in the long run, depending on the features you need and how long you plan to use the virtual data room.
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