If you research about Virtual Data Room (VDR) on the internet, you will see more than eight million search results. Though this can be overwhelming, the information you will get from these sources can persuade you to invest in the technology as soon as possible.
VDR is a technology that you can use to secure all the data and information that you share with outside users.
Types of VDRs
Generally, there are two types of VDRs. The first one is built for companies that undergo mergers and acquisitions. These processes require the involved parties to share and review confidential and highly classified documents. As such, they need technology that will not compromise the security of such records.
Also, they will need VDRs that can accommodate massive data volumes that will be uploaded and stored. The downside of this type of VDR, however, is that it comes with a very hefty price tag. Of course, the price is worth the features, but it might not fit the budgets of startups and other smaller ventures.
The second and most recent type of VDRs is the inexpensive and more user-friendly type. This type, despite its affordability, is packed with various security features like advance at rest and in transit encryption. Aside from that, it also supports SSL (AES 256-bit) encryption, the type that is ideal for financial transactions. Access to discrete Virtual Data Rooms and multi-level authentication processes are also part of its features.
In this case, if you are viewing a particular document on a web browser, the VDR’s security feature will automatically block sensitive data from popping up on your screen. This can prevent unauthorized users and the wrong people from taking screenshots of that particular document.
New and improved VDRs are also equipped with revocation processes, often called ‘document expiry.’ This feature allows document owners to revoke any access or sharing rights given to a specific user. Even if the said user already downloaded such a document, once the access is revoked, he can no longer open the document.
Dynamic watermark is also another document-specific security offered by VDRs. The document owner can embed watermarks on each document he shares and uploads to the VDR. This watermark may include such information as the date of upload, project name, and IP address or name of the uploader or document owner.
How to Choose the Right VDR For Your Business
There are several factors that you should carefully consider when choosing the right VDR for your business. Among all those factors, security should be your top priority. Choose VDRs that will allow you to share security information with your partners and external clients. If these people know that their data is safe with you, you can easily win their trust.
Next to security is cost. The majority of VDR vendors charge their clients based on the storage size and the period the said data room should be ready. Other vendors base the subscription charge on the frequency of access. If you need a VDR for a single deal, go for VDR vendors that charge per usage. Then again, if you need to use the said technology for more future transactions, go for vendors that offer a subscription-style, flat fee service.
If you want to have more in-depth knowledge about how VDRs can help your business, contact a vendor and ask them for a demonstration or free trial. These can help you visualize how the technology works, so it will be easier for you to decide.
