Virtual data rooms can be conditionally divided into two groups, which is already worth highlighting the leaders. The first group of services is VDR, mainly used by medium and large corporate clients. The second group is services that are more suitable for medium and small businesses. For more information about data room software comparison, read this article.
What is a virtual data room?
In terms of terms, a virtual data room is a virtual data storage that allows you to share them with third parties through access settings rules. Thanks to this, you can set different access rules for project participants and teams.
Users can log into the system by entering a username and password, which contain information about them and the rights of use available to them. It is security that distinguishes specialized VDRs from public ones.
For this reason, for example, IBM restricts employees from using Dropbox and other similar tools.
First group: data rooms for large clients
The first group can include the three most famous VDRs:
- Merrill Datasite.
- RR Donnelly.
All three companies have a wealth of experience in M&A, and their solutions are packed with functionality without sacrificing security. They also allow you to download and store large amounts of data. However, the price of their services is quite high because it is formed on a per-page basis and a fee for additional users.
Second group: data rooms for small and medium businesses
The second group includes companies
These systems are more convenient to use and relatively inexpensive. Even if your company employs 10-20 people, you can choose services in this category with a cost of up to $500 per month – this will not hit the budget significantly but will allow you to get a high level of data protection.
How to choose a VDR?
There are several factors to consider when choosing a VDR.
Of course, this aspect will interest you the most. It is important to choose a developer who stores all the information and does not give it to subcontractors. Well, certification, of course. Plus testimonials, customers, etc.
Most developers base their pricing on the space used and when the VDR opens. Some M&A law firms can afford to provide their own VDRs. If you only need VDR once, use services that will provide storage based on the amount of time. If you plan to use VDR regularly for many transactions per year, then purchasing a subscription is your choice.
Comfort and functionality
Here it is necessary to consider the format of files with which the system can work, whether it is possible to download zip, and on which OS it is available (Mac?). If you are dealing with international transactions, it is important that VDR is open 24/7 and supports multiple languages. Pay attention to whether there is a free demo version.