If you decide to purchase a virtual data room before you perform some important business transaction, it will help you avoid many problems, make your work easier, and save time. Most quality VDRs guarantee their customers security during the transaction process, prompt completion of the transaction, and partner satisfaction, as they have all the features they need to do so. However, if you do not carefully choose a provider, it will not only result in additional costs but may also jeopardize the transaction. Below we describe what mistakes to avoid when researching data room reviews.
What are virtual data rooms and why are they needed?
Virtual data rooms are revolutionary business tools that serve as online repositories and venues for sharing sensitive data, but unlike traditional cloud storage, VDRs have powerful security features that allow companies to use the solution to close deals remotely. Data rooms also offer tools for organizing and managing documents and users.
VDRs branch out into a wide variety of industries in business; they can be used for medical, educational, government, financial, legal, and marketing purposes. Within VDRs, companies can conduct operations such as due diligence, fundraising, IPOs, mergers and acquisitions post-merger integration, and more.
Data room software comparison – the most common mistakes when choosing a VDR vendor
When you decide to choose a VDR provider, you will be faced with a tough choice. The VDR market is very vast and offers a plethora of offers for you, but you have to be careful and selective. Below we will provide a list of things to avoid when choosing a data room and why you should do so:
- Performing to read reviews without prior preparation
What do we mean by the phrase “preparation”? The fact is that, as mentioned many times before, there are tons of offers from providers on the market. Everyone will be trying to show their best sides and best benefits, and in such turmoil, it’s easy to get confused, forget and rashly choose a provider that is of little or no benefit to your business and transaction. First of all, you must determine your needs: what do you need a VDR for? What functions will be needed to fulfill that purpose? If you have a rough list of requirements, it will be easier for you to weed out the unsuitable options, and focus on the right ones.
- Do not pay enough attention to data room certifications
Every data room has a security certification, but they also come in different qualities. If you choose a vendor with a weak security server, you could put your company at risk down the road. It is best to consider vendors that provide certifications such as SOC 1 or 2, ISO 27001, GDPR, or if you are a niche company, HIPAA.
- “Go for the perks”
The more perks a supplier offers, the lower the quality of their product. Sure, benefits aren’t a bad thing, but you also need to make sure the provider offers a program worthy of their benefits
- Closing a deal with a provider without looking at their pricing policy
Different providers have different pricing policies, and some of them may not be good for your budget at all. For example, if your project involves storing and sharing large files, videos, or presentations, you will need a large amount of storage, and the provider you choose charges by the amount of extra space in the storage – then you will be at a disadvantage.