The digital data room, also known as the virtual data room, is a virtual space for managing and storing documents. To organize the exchange of private documents with external contractors correctly, specialized solutions are required. One such solution is a virtual data room. Digital data rooms are used in teamwork to enable secure collaboration on shared documents. In particular, it is used in due diligence.
A virtual data room is an internet-based platform that enables secure online access to confidential documents. As part of the due diligence, potential buyers check confidential documents such as the economic, legal and tax conditions of the object of sale in the virtual data room. Data leaks happen not only due to the actions of internal or external attackers. They are frequently caused by the transfer of files to third parties through private accounts of public cloud platforms. Even sending it by e-mail can be insecure as the information goes on the public network and the company loses control over it.
Forbes mentions the 5 year compounded growth of Virtual Data Room as 16% and mentions “far-flung virtual teams and increasingly global deals make it harder for dealmakers to get in a room to view confidential documents, so more will rely on secure online data sharing”.
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How Does Virtual Data Room Work?
An electronic data room is a storage located in a private cloud or within a secure organization perimeter. Its main task is to provide authorized clients with access to documents through a web interface or special applications. The traffic between the customer and the storage is necessarily encrypted. In some cases, even DRM functions – digital restrictions management systems – can be implemented. Then the documents themselves are encrypted. Typically, data room software is used to carry out large corporate transactions, provide access to company reporting during audits, transfer information to investors, as well as in other situations when business-critical data needs to be outsourced.
To share files, the user uploads them to the storage space, configures access, and sends a link to the recipient. The process can be carried out by default since many developers implement integration with file managers, instant messengers, mail programs, and other popular software in client applications. In this case, the process of downloading and sending does not look much more complicated than attaching a file to an email. If the documents are protected using DRM technologies, the recipient will have to install special agent software on the computer that controls the correctness of their use. In this case, there are more control possibilities, but far from all types of data will be able to protect with DRM – usually, only Microsoft Office documents.
Who Needs Virtual Data Room Software
The circle of potential customers should not be limited to individual industries. In the first instance, virtual data rooms are needed by financial companies, construction, and engineering organizations, law firms, as well as communication service providers, and retailers. They often work with critical information and need a means to securely send documents to external counterparties or to remote branches. These customers demand flexible configuration of access rights to files, management of their life cycle, and even protection applying DRM technologies.
In the telecommunication and financial sector, the used means of protecting user data and marking documents must comply with the requirements of regulators – this is another reason for choosing a specialized solution from the best data room providers. In retail, merchandisers and sales representatives need to be given access to trade secrets. Moreover, viewing documents on mobile devices and deleting them in the event of an employee’s dismissal also need to be controlled.
How to Choose a Virtual Data Room Solution for Windows?
There are quite a few specialized data room services on the market with different capabilities and from different price ranges. In general, for organizing a VDR, it is worth focusing on complex solutions that allow you to manage documents from the moment they are loaded into the storage until they are deleted on the counterparty’s side. This requires support for DRM technologies, as well as the presence of agent programs for desktop operating systems. So, let’s take a closer look at top virtual data room providers for Windows.
Virtual Data Room Software Comparison Table
| VDR Provider | Digify | ShareVault | Imprima Virtual Data Rooms | OneHub |
|---|---|---|---|---|
| VDR ProviderLocation | DigifyUnited States | ShareVaultUnited States | Imprima Virtual Data RoomsUnited Kingdom | OneHubUnited States |
| VDR ProviderPricing (per month) | Digify$99 | ShareVaultN/A* | Imprima Virtual Data RoomsN/A* | OneHub$15 |
| VDR ProviderFree trial period | Digify+ | ShareVault+ | Imprima Virtual Data Rooms– | OneHub+ |
| VDR ProviderThe best application | Digify Online data room software is suitable for companies with 1-1,000+ users; is frequently used for M&A deals, financial transactions, and audits |
ShareVault The software offers a broad range of services with a focus on finances and life sciences |
Imprima Virtual Data Rooms It’s designed for the small business sector |
OneHub This is one of the best virtual data rooms for due diligence; the software also supports litigation, compliance, audits, and more; is perfect for companies with 1-1,000+ users |
| VDR ProviderPros | Digify + access control + the availability of redaction (editing) tools + high-level security (SSL encryption) + the ability to work with several documents at a time |
ShareVault + convenient management of stored data + around-the-clock support + file categorization and classification + secure file viewer |
Imprima Virtual Data Rooms + multiple deal organization + file categorization + multi-level access control + great customer service + a broad range of training programs (ranging from webinars to in-person training) |
OneHub + availability of collaboration tools + user-friendly interface + well-developed functionality and navigation |
| VDR ProviderCons | Digify – trouble accessing due to firewall issues may appear |
ShareVault – On-Premise Windows version isn’t available (only Desktop) – no live chat support |
Imprima Virtual Data Rooms – On-Premise Windows version isn’t available |
OneHub – no live chat support |
* The information is provided for potential clients and/or registered users only.
