Why are there so many data room service providers?
The main reason behind the current diversity of data room service providers is the nearly unlimited data room use cases. While traditional data rooms were essentially document warehouses, the modern VDR offers broader possibilities.
Data room providers now allow their users to apply the software to:
- Remote due diligence
- Creative collaboration
- Negotiations
- Corporate management
- Board communications
To deliver top-level service in any of the above scenarios, most virtual data room providers focus on one specific niche for which they develop new tools.
However, it is also important to remember that even with top data room providers, users still contribute a great deal to the overall success of the VDR’s implementation.
Data room usage best practices
There are three principles of practical cooperation with any of the virtual data room service providers.
Clear expectations
It is crucial to know what functions the data room software will perform. This understanding will help define the features to look for while making a data room comparison.
Basic technical understanding
Although all data room users don’t need to know the exact mechanics of VDR tools, getting a general idea can be beneficial. Consult with your internal system administrator or ask the provider’s representative to walk you through the protocols behind:
- Physical data storage
- Information transfers
- Hardware and software maintenance
- Data room administration
Organizational commitment
All top data room providers will confirm that using any VDR is an ongoing process. Therefore, you will need to prioritize the responsibility of keeping the virtual space organized, secure, and effective.
Luckily, it is easier to stay on top of VDR upkeep with the right data room service providers. This is why making the correct choice is so paramount.
How to compare Virtual Data Room Providers
When comparing virtual data room providers, concentrate on the specific value for your project. For instance, even though every deal is unique, most due diligence data room users agree on these must-have qualities:
Security
The best approach to evaluating the privacy outlook of virtual data room service providers is by looking for independent certificates and compliances, such as ISO 27001, SOC 2, HIPAA, and others.
Optimal feature sets
During a data room comparison, focus on the functions and tools specific to your industry and project.
Enhanced usability
Look for no plug-in access option, versatile device support, smartphone applications, and a simple interface.
Budget fit
All data room service providers have a different pricing structure as they cater to companies of various sizes and capacities. Get price quotes from selected providers to see which one works for you.
Helpful support
A 24/7/365 multilingual support team is an undeniable asset to all virtual data room providers and their offerings.
Virtual data room providers comparison
We analyzed the most popular providers on the market to help you narrow down the due diligence data room search. In this virtual data room comparison, we considered:
- Feature versatility
- Security practices
- Software quality
- User convenience
- Affordability
- Competence in the field
We also inspected hundreds of user reviews across multiple independent platforms. The main criteria for this analysis were relevance, specific details, and verifiable user information. You will see the summary of the reviews in the rating tab of the virtual data room comparison.
Most of the data room companies come with their unique sets of pros and cons. For your convenience, we will not go into too many technical details and focus on the specific value each provider can offer for due diligence.