Virtual Data Rooms are secure digital spaces that allow various companies to manage and share sensitive documents. Originally, VDRs were only intended for MIA transactions, but now they are used for a much broader purpose. Now, different vendors focus on different uses and scenarios, and their additional features differ depending on their purpose. In this article, we’ll cover what VDRs are and how VDR providers differ from one another.
What is a virtual data room and scenarios of using it?
A VDR is a cloud-based space that can keep all of a company’s sensitive data safe while using state-of-the-art security and tracking features. Most companies also need a secure space to provide secure access to a third party, this can be anyone: investors, suppliers, potential customers, and so on.
VDRs may differ in their purposes. Providers may focus more on M&A transactions and equip them with all the useful features for a successful transaction. They can serve to attract venture capital that provides strong security or to launch marketing assets or partnerships.
How do VDR vendors differ in security measures?
Although security is the number 1 priority of any self-respecting VDR provider, their security practices may differ in terms of the security certificate they possess. Here are the best security certifications for VDRs, and if your provider has one, you can trust them.
- FedRAMP Authorized.
This certificate is one of the most trustworthy because it meets the strictest security standards in the world. U.S. federal agents take the security of virtual data room providers very seriously, as they will be storing a lot of valuable data from various companies. Providers must undergo regular audits to maintain the validity of their certificates.
- ISO 27017 and 27108
These two ISO certifications are an improved version of 27001. For example, ISO 27017 means that VDR meets the best standards for cloud security, while ISO 27108 offers you specific guidance on data protection that also helps to establish personally identifiable information (PII). If your company contains PII, the provider you choose must have this certification.
- SOC 2
The SOC 2 certification requires the provider to have a documented security program and internal knowledge of information security risks.
- FINRA SEC 17a-4
This certificate shows that the provider is complying with all the regulations regarding due diligence. For companies that provide financial services, this is the best certificate to buy
- HIPAA/HITech Compliance
Healthcare or science organizations will find what they are looking for if their HRP provider has these certificates which means that their provider can ensure complete confidentiality of their patients’ data
Differences in pricing between VDR providers
Providers almost always have a different pricing model, and you should always check with your provider before you buy a VDR. You need to make sure that the payment terms, the pricing method, and the total cost will work for you.
Providers can set the price depending on the number of employees in your company who will use the VDR, there is no charge for invited users. So for each user, there is a fixed rate, for example, 10 dollars, and per month you will pay as many people using VDR.
Some prices depend on the number of all users, including visitors, and this option is the most expensive. Some providers charge by the page. That is, for every page of a document uploaded to the space, and this can be a profitable option for small businesses and their small projects.
There’s also the option of paying by project and by storage volume, where accordingly you’ll pay depending on the amount of shared project and gigabytes of storage.