The Essential Features of a Quality VDR

The popularity of virtual data rooms has rapidly increased in different business spheres. Different types of businesses are switching to safe and remote data management systems, which make online data room software even more popular. The growth is easily visible in the virtual data room market as it is already a billion-dollar industry.

When any business sector shows such remarkable growth, it always entices new players to join in. That is why the VDR industry is witnessing a constant influx of new data room services. It means that buyers will now have more options to choose from. However, there is another side of the coin — what should a business consider when buying data room software?

Here are some necessary features for an electronic data room that you should look for during a data room comparison.


The primary objective of virtual data room technology is to provide businesses with industrial-grade digital protection. Otherwise, free online data storage tools would have been enough to do the job. 

Security in virtual data rooms varies from vendor to vendor and the type of service you purchase. Still, the following security features are mandatory.

  • Multi-factor authorization. It is a multi-step verification process in which the user needs to go through additional identity verification processes even after using the correct password. The multi-factor authorization ensures only legitimate users can access the VDR.
  • Remote device deletion. The ability to remove or detach any device from the data room software is essential. It helps you keep data safe in case any data room user loses their device. You can also go one step further and look for the device purging feature, which allows deleting all files in the VDR browsed or downloaded from the VDR.
  • Multi-location server. It is a common feature in all the best data room providers. Having data servers dispersed in different locations makes sure that business data is safe, even if one server collapses due to any reason.
  • Global security certifications. There are over 100 virtual data room providers in the market, and many are joining in regularly. Always make sure the data room you choose is ISO-certified and complies with local or regional digital data management protocols.

Some of the most secure virtual data rooms include iDeals, Merrill Datasite, DealRoom, ShareVault, Intralinks, and FirmRoom. You can read more about VDR providers on trusted independent review platforms or globally recognized websites like G2 and Capterra.

Document protection

Virtual data rooms provide extended online protection in various shapes. These document security features make sure your information is safe from external and internal threats.

  • Document access control. A virtual data room allows its management to decide who can or cannot have access to a file, folder, document, or even a part of that document. Management can apply different settings for every user or group of users. Additionally, the document access revoke feature allows VDR administration to remove document access at any time.
  • View-only mode. View-only mode is a relatively advanced feature, but it is vital for external data sharing. It restricts users from sharing, editing, downloading, deleting, copying, overwriting, or annotating any specific document.
  • Data encryption. Data encryption is common in VDRs, but some of the best virtual data room providers offer the 256-bit SSL data encryption feature. It encrypts the file and the data inside and is commonly used by banks and military organizations for data storage and sharing.
  • Digital watermarks. Digital or dynamic watermarks appear on the document whether you view, download, or print them. Other users cannot remove the watermark, which helps protect ownership rights.

Other important features include fence-view mode, granular access, and built-in redaction.

Ease of use

Virtual data room software simplifies different data management and communication processes. The following features are necessary to use VDRs easily.

  • Full-text search. The full-text search feature is a time-saving option that allows finding any specific file in seconds, even if you don’t remember its name. You can search any file by entering a phrase or keyword, and VDR will show all possible suggestions.
  • User-friendly mobile interface. Most of the data rooms are optimized for desktop viewing but don’t perform well when opened on mobile phones or tablets. A user-friendly mobile interface is mandatory.
  • Mobile access. Remote data access is a massive selling point for virtual data room providers. It is better to choose a data room software that at least supports Android and iOS mobile operating systems.
  • Multilingual access. English is not the first language everywhere; many users prefer using software in their native languages. High-end virtual data rooms are available in different international languages like German, French, English, Spanish, etc.

In addition to that, also look for communication features or easy integration with third-party apps. If you intend to use virtual data room software for deal management, then features like user activity tracker, group overview reports, audit trails, and Q&A modules.

Bottom line

Some of the best virtual data rooms on the market should offer top-notch security, document protection, and ease of use. Use the features listed above as a checklist to review and compare virtual data rooms for making an informed decision.

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