Virtual Data Rooms or VDRS have simplified the way businesses process transactions. As a result, they have become critical for handling a broad range of processes including due diligence, M&A, and Litigation, among others. What makes VDRs popular is that users can instantly access them from anywhere. VDRs are normally used in a wide range of industries and they include:
Note that VDRs range in terms of ease of use, feature set, support, and price. All these aspects, therefore, make it quite challenging for customers to quickly select the best solution. Although differences between price, and support or service delivery might be small, they significantly affect the rate of completion of various processes. Besides that, they also have a huge impact on customer satisfaction. So, before choosing a VDR service, it’s only right that you make comparisons between various service providers
Types of VDR Providers
Although VDR providers can be categorized using various factors, they are mostly grouped depending on:
Generic file sharing tools
These type of VDR providers are mainly interested in users who want to share data and upload documents. It’s worth noting that these providers only offer basic file-sharing services that need minimal support. Generic file-sharing tools offer users limited options for customization and file control. As a result, user data is usually left vulnerable and may be targeted by unauthorized persons.
Legal VDR Providers
They offer clients data rooms that effectively secure documents. Besides that, users can also track performance and user engagement. These services providers are usually businesses that have been around for quite some time. So, they usually morph into VDR providers because of their reputation, industry awareness, and experience.
For example, an institution dealing with financial printing services can easily transform into a VDR provider by simply transforming to digital from print. However, companies like these are usually notorious for charging high costs. This is because they are already established and have what customers are looking for.
They first emerged into the VDR industry in the 2000s. Modern VDR providers are the new types of service providers. Unlike the others, their main goal is to provide users with customized virtual data rooms. In addition to that, their prices are also highly competitive. Most businesses opt for Modern Providers because their services are secure and the user has better control.
They tend to lean towards technology innovations as well as the latest business. Modern Providers use design features that allow for electronic document sharing in addition to models such as SaaS. Generally, users are guaranteed of quality support, better security, and improved document control.
Below is a comprehensive virtual data room comparison among the three common provider.
- Features: combines the beneficial features of startups that are just starting out and huge VDR providers. The functionality is amazing and perfect for providers with experience. However, newbies can also use these services efficiently because only basic IT skills are needed.
- Support and Customization: all users get premium support. The VDR is specifically designed to cater to your needs.
- Interface and security: simple user interfaces that are easy to use. In addition to that, the security of modern is usually world-class.
- Pricing: competitive and transparent pricing based on your needs.
- Features: generally good design features. However, they have a ton of other features that simply complicate the system.
- Support and Customization: these providers offer various levels of support. Note that if you need a form of extra support, then you must be ready to pay for it. These VDRs have basic designs but if you need a custom design, then it comes at an extra cost.
- Interface and security: with so many unwanted features, legacy interfaces are not easy to use. The level of security tends to vary depending on the reputation and name of the provider.
- Pricing: Legacy providers have the “per-page” pricing system. Therefore, they are not suitable for small clients with fixed budgets.
Generic File Sharing Tools
- Features: designed for generic use and, therefore, not suitable for critical processes.
- Support and Customization: the support is usually basic mostly via email. While there are customization offers, they are minimal. Overall, users need to adjust to what the system offers and not try to modify it.
- Interface and security: with a basic user interface, customers can’t use these providers for confidential or official documents. This means that security is also limited and, therefore, not suitable for companies that need a high level of security.
- Pricing: initially, the pricing is usually very cheap. However, users compensate for this with service delays and general frustration. Don’t forget that your data is usually at a high risk of access by third parties.
Key Features of a Good VDR Platform
It’s evident that there are several types of VDR platforms. In addition to that, there are also numerous providers. To ensure that you choose the best platform, some of the key features to consider include:
- Restricted access: it’s great for defining security. A good platform should allow you to personalize permission or access settings.
- Searchable texts: it helps to promote easier navigation while searching for documents.
- Quick file upload: both businesses and clients need platforms that allow for easier uploading of big files. A drag-and-drop feature is usually great.
- Security: this is a crucial factor that all clients need to consider. A good security system will definitely give clients peace of mind knowing their data is safe.
- Reliable support: a good VDR provider should have a reliable support system. It should be functional with multiple communication channels. Customers should also be guaranteed personalized answers in order to cater to their specific needs.
The Bottom Line
VDRs are great online resources tools. They provide an easier way of storing a wide range of files and documents. Instead of a company storing all its information in a server, a provider can effectively. They are quickly replacing physical data rooms which have lots of challenges including security threats. However, VDRs also have challenges. Most of these models have data structures that are bloated. In addition to that, they don’t meet the data security demands required for models that hold financial records.