A virtual data room (VDR) is a secure cloud platform that enables managing, secure data storage and secure file sharing of sensitive company documents. Most traditional data room platforms focus on financial transactions such as merger and acquisitions (M&A). But modern and the best virtual data room service providers like DocullyVDR offer much broader, more user-friendly services and have more security and compliance features and certifications. They are designed to meet the needs for any industry, line of business or use-case. Your employees often share sensitive documents, intellectual property, contracts or confidential information therefore it is of utmost importance to have a modern and secure file sharing platform to manage this content.
Most modern secure virtual data room service providers like DocullyVDR focus on providing a best-in-class user experience and extended product features. They are secure file sharing platforms that address multiple uses-cases and have a very high level of security. While it is true that modern data rooms offer the vast majority of features that a traditional data room has like for example using box as a VDR to securely share any files through desktop or mobile, enable granular user permissions, watermark documents, store unlimited file versions, and much more. But these platforms also have advanced malware and ransomware protection. Most traditional virtual data rooms do not have these certifications or protections. There is also a common misconception that because of these enhanced security features the modern investor data room services may cost more for customers. But this is not true as in many cases, Box is cheaper than a traditional data room as it uses a favorable price per seat model. Most companies are better off choosing Box as they get world-class security at an attractive price point. Moreover most traditional data rooms focus on the banking and legal industry as they provide services for M&A deals. But most employees who need to collaborate on sensitive documents aren’t bankers.
They deal with proprietary intellectual property, sensitive marketing materials for a new product launch or private contracts. The best virtual data room service providers like Docully VDR also focus on them and provide the security, accessibility and peace of mind to all parties involved. But even then as a customer there may be some common issues associated with using secure virtual data rooms that you need to know about and how you can deal with them successfully.
The most common issues with secure investor data room:
1. Selecting the wrong pricing methods
Virtual data room is a highly cost-effective solution for data storage and secure file sharing , which is cheaper than many other digital data management tools. But if you choose the wrong pricing plan then it can turn out to be a disastrous investment
Currently, these are the major pricing methods used for Data Room Pricing : Per user (Charge For Employees Only), Per user (Each Visitor), Per page, Per Project/Data Room and Storage Size. Every pricing model has its benefits and drawbacks if you don’t know which one you should choose. Therefore, you need to research thoroughly and see which data room pricing model will actually help you make it a cost-effective investment.
2. Poor virtual data room security
It may come as a shock for you, but security can also be an issue in virtual data rooms even though they are primarily known for the security they provide. But the fact is that many data rooms don’t have the advanced security features required to tackle modern-day cyber criminals.
So it is prudent to select a certified and highly reputed virtual data room service providers like Docully VDR to avoid data losses.
3. Wrong permission settings
Setting access permission settings accurately and diligently, especially when you are about to share data with external parties, is of utmost importance. An error in setting access permissions can backfire and may cost you huge losses. For example, you can restrict users from downloading, editing, saving, or printing confidential documents. The best way is to cross-check the permission settings twice or even thrice. You can also ask other trusted users to recheck the settings for you. Another thing you can do is create a dummy account and see how the external users will view files.
4. Improper organization of documents and files
Setting up your virtual data room properly is very important, especially if it is for due diligence. Data organization is vital to help users find and share documents easily. It is highly recommended to prepare a document checklist or use it in your data room.
Most importantly, when you upload documents in a data room, make sure they fully correspond to the sequence in your due diligence checklist. Failing to do so will create problems for buyers or external parties.
5. Ineffective use of customer support services
Most importantly, make sure the virtual data room service provider you are hiring has great customer support service. Dynamic customer support offers help via different channels like email, phone calls, help desk, forums, blogs, and live chatting.
Conclusion
Virtual data room service providers come in all shapes and sizes, meaning that some will naturally be unsuited to your business and its needs. This is why it is of utmost importance that you spend sufficient time and effort investigating and comparing data room providers before you decide which one to use. Most of the problems in the virtual data rooms are either due to human error or hiring uncertified or low-grade data room providers. The best way to get a smooth data room experience is to look for certified vendors with great customer support service and advanced features.
However inspite of all diligence you feel you have ended up selecting the wrong virtual data room service provider for your needs, don’t worry. Changing to a new data room provider is a lot easier than it may seem. Undergoing the slight inconvenience of switching your vendor is far better than sticking with a platform that you feel uncomfortable to use or that doesn’t adequately meet the needs of your business and its employees.
The first thing you should do before initiating a change is to check what agreement you have in place with your current investor data room provider as this will usually give an indication of any contractual obligations you may have in terms of payments. You will be able to get out of your contract at the end of the period for which you have committed to pay as you are obligated to pay until the end of the subscription period.
Most, if not all, virtual data room service providers will give you the option of receiving the contents of your data room on a USB or hard drive that is delivered to your person. These are not usually included in the subscription and so will be charged as an additional fee based on the size of the contents and the number of copies you require.
This data can then be uploaded, either by yourself or by your new virtual data room service provider, so that your new investor data room is up and running for your business use immediately. Most professional providers will aid you in the process of migrating your data from your old vendor so this step should be of no worry to your business.
The process for deciding on a new vendor should not be daunting task. You should look out for key features like security, user interface/experience and price. Security is obviously the cornerstone of any good virtual data room service providers and is what sets it apart from other data sharing solutions. Look for a vendor that manages its own data centers and be sure to check if the security features offered match the level required by your business.
User experience is so important and is usually quoted as the main reason for businesses wanting to leave their current provider. The best way to test the experience is to use the free trial that most data room providers offer. This way you can compare services of multiple vendors before committing to use the virtual data room service provider that suits you best..
The DocullyVDR team is a provider of a new generation secure data sharing platform designed for businesses. The team has extensive experience in working with document sharing platforms and has been assisting the Virtual Data Room community since 2019 by providing users with free information.