Virtual data rooms are not just traditional data repositories anymore, where you can only store or retrieve your data. Virtual data room providers have adapted to the changing demands of the market and brought new and amazing features catering to different business needs.
The virtual data room market is already saturated, but features vary greatly in different data rooms. Therefore, if you are seeking a digital data room for your business or team, here are some key features to consider.
The type of features you need will depend on how you intend to use a VDR. Dataroom software for M&As will require advanced features, while business teams might look for something different. The following are some necessary-to-advanced features to consider when different data room services are compared.
1. Data Room Security
Security is the most crucial and simply uncompromisable element in dataroom software. It is something every business or professional primarily uses a data room for. Here is a list of some essential security features.
Remote device purging
A relatively new feature that permits the data room administration to disconnect or delete any device attached to the data room software. It not only removes the device but also any VDR-related files in it. The device purging feature is very effective if a member loses their device.
Multi-factor authentication
Multi-factor authorization is a necessary feature for any type of data room to protect it from unauthorized entrants. When a data room user logs in from a new device or uses multiple internet connections, the data room asks the user to reconfirm their identity by going through multiple authorization processes. It can be identifying the latest activities performed by the user or asking some secret questions (answers are already recorded by the user).
In addition to that, make sure the vendor you choose is ISO27081, ISO27001, and SOC2 certified. Regional certifications like HIPAA and GDPR compliance are necessary based on the country you are operating in.
It is also important to make sure that the dataroom services you choose have strong backup systems and high-quality, multi-location servers.
2. Document security features
Data room vendors provide additional layers of protection through document security features.
Document permission settings
Data room administration must be able to set document access restrictions on data room users. That is, who should or shouldn’t be able to access any document, file, or folder.
Digital watermarks
Digital or dynamic watermarks can be an image, text, audio, or video clip that users can add to their documents to avoid copyright issues. Digital watermarks also allow the file owner to track all changes in the document.
Virus scanning
Documents imported from other devices or shared by users must be scanned for viruses. It is better to have an anti-virus in your electronic data room.
256-bit encryption
Currently, 256-bit is the highest standard of data encryption in the market. It provides protection when you share to or from a virtual data room.
Self-destructing documents
It is a feature that allows the file owner or the VDR administration to revoke document access whenever needed, and that too at very short notice.
Fence-view
Fence-view is an advanced document protection tool that you may consider when choosing a VDR for external data sharing. It restricts document viewing to certain areas of the document. The fence-view feature is highly effective for transactions like M&As, where data is shared with multiple users.
3. Communication tools
VDRs now have communication tools for group and individual communication. Here are some useful features.
Data room messenger
Ideally, data room software must have a built-in chat messenger where users can communicate easily or share documents in private. Messengers also allow users to create chat groups.
Audio/video calling tools
Remote business teams usually arrange business meetings on online meeting software. Keeping this in mind, data room vendors now provide built-in tools for audio or video conferencing.
Q&A section
The Q&A feature allows the members to ask questions and get answers in a live chat thread. Members added to the thread can ask questions, while anyone can answer.
4. Data room usability & Support
The data room you choose should be easy to use and have strong customer support. Here are some essential features to look for.
Multi-language support
English is not the primary language of every data room user. That is why virtual data room providers offer multi-language support (Ideals data rooms are available in 14 different languages).
Multi-device and operating system support
Although it is impossible to create virtual data rooms that support every operating system, it is important that the VDR you choose must support any basic OS, such as Windows, Linux, Mac, Android, and iOS. Similarly, VDRs must be accessible from mobiles, tablets, and desktops.
Third-party apps integration
Sometimes users need additional software for different purposes, such as communication, document editing, etc. Most data rooms are integrable with third-party apps like Microsoft Office,
Zoom, Slack, Salesforce, etc.
5. Evaluating VDR providers: weighing the trade-offs
No virtual data room platform excels in every area. Some providers offer superior security features but may have a steeper learning curve, while others prioritize ease of use but might charge premium prices for advanced features. Understanding these trade-offs is essential when selecting a VDR that aligns with your specific requirements and budget. To make an informed decision, carefully review the pros and cons of different platforms, comparing how each balances security, usability, pricing, and support quality against your project’s unique needs.
Summing it up
Modern-day virtual data rooms are a combination of data storage, communication, and project management tools. The feature you need in your VDR depends on your business needs. However, the features mentioned above should be a part of any data room software.
