Online data rooms are not just simple data-sharing platforms anymore. They offer comprehensive data management solutions with advanced features for communication and reporting. The introduction of AI in virtual data room technology has been the icing on the cake, as it has made data and deal management simpler.

As demand for VDR technology increases day by day, it is important to choose a reliable and certified service provider. Virtual data rooms nowadays offer different types of features for varying customer needs. Is it necessary to go for all the features?

Not every feature in a data room is necessary for everyone. A startup does not have the same requirements as a large organization. The following are key features, data room pricing tiers, and their suitability for different users.

Virtual data room packages

Data room packages or pricing are a major element to consider when opting for this technology. As Ronald Hernandez, VDR expert, says, “users pay attention to feature sets they need in their virtual data rooms, but they often overlook the VDR subscription plans and then end up paying way more than they should. Understanding data room pricing is as important as considering a vendor’s reputation or selecting important features.”

Here is a brief overview of data room pricing. You can explore VDR pricing details for a deeper understanding.

•    Per-page pricing. Customers pay for every page they upload to the VDR. It is best suited for small-sized and one-time transactions.
•    Usage-based pricing. Users are charged for the total amount of storage consumed in the VDR. This pricing plan suits small teams.
•    Flat-monthly pricing. Vendors applying this method charge a fixed amount every month for a predefined package. It is suitable for long-term and large-scale usage.

Security and Reporting

Security is the backbone of any virtual data room. It is unwise to make a compromise in this segment. Here is what to look for.

•    Multi-factor authorization. It is a necessary feature for any type of data room that requires users to go through multiple identity confirmation steps.
•    Data encryption. Encrypted documents add a necessary security layer when the data is shared with external parties.
•    Fence-view. It enables a restricted viewing mode and prevents sensitive data from unsolicited viewing. It is one of the best virtual data room features for transactions like M&As and IPOs.
•    Audit logs. Audit logs or audit trails provide you with a chronological report of all virtual data room activities. The management can also see the login and logout times of all the users and how much time they spend in the data room.
•    Granular access permissions. This feature allows management to define user access settings based on their roles and responsibilities.
•    View-only mode. It prevents anyone from sharing, editing, printing, or downloading files in the data room.

It is also necessary to hire a data room certified by trusted global organizations like ISO and GDPR. Regional certifications like FINRA and HIPAA are important for regulatory purposes.

Document management

Advanced document management features simplify data handling in the VDR. Here are some important features to look for.

•    Microsoft Office integration. Microsoft Office tools such as PowerPoint, Word, Excel, etc., are super useful for data editing and handling.
•    Bulk uploads. The bulk upload feature is a time-saver when you are setting up your virtual data room for general use or due diligence, as it allows you to upload hundreds of files in one go.
•    Drag and drop function. The drag-and-drop function allows you to drag documents or files from your device into your data room.
•    Smart search. Smart search allows you to search for a keyword and then go through multiple documents (containing that keyword) in snippet form. The smart search feature is very effective when you don’t remember the file name or category. You can also search a document via a phrase or sentence.
•    Scroll-through document viewer. This feature allows you to scroll through multiple files in a folder, even if you have opened a file. It ultimately helps you view more files in less time.

Communication and branding

Communication tools are important for smooth collaboration between data room users. Here is what to look for.

•    Slack integration. Slack is a very popular software in the business community, and many professionals prefer Slack over data rooms’ built-in communication tools. Modern data room solutions are integrable with Slack, which helps streamline business communication.
•    Q&A section. Q&A is a feature highly used in unusual business transactions like M&As, due diligence, deal-making, etc. It gives users a platform where they can ask questions or answer those questions in real-time.
•    Branded website. The best virtual data room providers give you the luxury of creating a branded data room website for your business. You can add your brand logo and color theme to showcase your company’s brand.

Final words

As the data room industry is evolving rapidly, the market is becoming saturated with hundreds of data room vendors. It is important to be diligent when choosing a service provider for you. Investing in the right VDR features and a reliable data room provider is key to achieving desired results from this technology.