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Top Data Room Providers in 2020
Almost every interaction between companies involves numerous documents. Both parties usually need to study a lot of papers to make the correct decision and close the deal successfully. Just a decade ago in most cases, the representatives of a company had to travel to the third-party to pass all the documents and begin the due diligence. It took a lot of time, effort, and, of course, money.
But today thanks to the evolution of technologies businesses can exchange the information remotely using just a device connected to the Internet. The only software you need to perform that is a virtual data room.
What’s a data room?
A virtual data room is a service that allows businesses to upload their corporate documents to the cloud repository, keep them there, and share with others when needed. If this sounds very much like a cloud storage such as Google Drive or Dropbox – that’s because it is what data rooms are in their essence.
Although, they’re much safer than generic cloud storages. That’s why they’re more suited for sensitive corporate information. Usually, data rooms are protected with the most reliable military-grade encryption that keeps the files safeguarded both in the repository and while they’re being transferred.
What are the other benefits of a data room?
Encryption is not the only way VDR providers help businesses to protect their information. Vendors also implement additional safety tools that will give control over security to the data room owner. Thanks to two-factor authentication you can be sure unauthorized users won’t get into the repository even if they find out the login data of someone from your team.
And you will have control over the actions of everyone. Most VDRs offer granular permissions – the feature that allows you to set different levels of access for each team member and third-party. You get to decide if they can view, comment, edit, share, and print certain documents. Moreover, you will see the activity of every user down to each file and action they take within the data room. Finally, there are other safety features such as watermarks and fence view mode that will help you to protect the information even better.
Besides protection, you will also get different teamwork tools that will help you streamline the processes and accelerate the deal. For example, participants will get to leave comments on the files to communicate with others. Also, there is a Questions and Answers section where third-parties can quickly reach the information they need and ask for additional data if needed.
Of course, the variety and number of function are different for every provider. But most trusted and reputable vendors will supply your business with every feature you need for a successful deal. Also, we should mention that most data rooms offer a very simple interface that will be easy to understand even for not quite tech-savvy users. And if someone faces any issues, a support team of the provider will come to the rescue at any needed moment. So you can be sure that with a data room your deal-making will improve greatly.
The pricing is clear and transparent. It provides great value for money in our view. Very convenient upload of documents. Effective search, which perfectly works in the local language (non-Latin symbols). Multiple security options for Excel docs. Really Easy work with permissions. Comprehensive usability reporting. Customers service is quick to respond.
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Analysis of Features of Virtual Data Room Services
One of the reasons that companies enjoy data rooms is due to the fact that it connects all of the participants regardless of their geographical location and allows them to work on a project as a cohesive unit. Imagine not having to physically appear at a specific location or send documents through a courier service. Such processes waste a lot of time and resources causing the project to be delayed. You can upload any documents that are required into the data room and they will be made available to all of the participants instantly. This is much safer than using cloud services such as Dropbox or Google Drive since they do not even come close to the security standards and features that a lot of the data rooms offer nowadays.
Also, by keeping your documentation and communication together, it is possible to avoid a lot of confusion and save time since everybody will be on the same page. For example, if you have a question about a certain piece of information, you can ask everything inside the data room. All of the participants will be able to see this question and the answer and will not have to ask this question again. The data room can even produce a Q&A sheet for you. Conducting communication outside the data room is not secure and you could be violating certain security regulations since there are government security standards for handling information as well. A virtual data room allows you to mitigate the risk of any potential lawsuit of the government getting involved from the very beginning.
It is worth noting that the data room will still be useful to you even after the project is over. It can be used as a convenient central document repository which holds all of the documents that were uploaded during the deal and it offers enough storage, both cloud and on-site, to handle all of your storage needs in the future. This way you will no longer have to waste time searching for documents, requesting someone to send you certain information and then having to wait some more for them to grant you permission to view the document which is the way Google Docs work. It will facilitate your current workflow and keep you organized.