6 Essential Features Of Secure Data Room Software

A virtual data room is a secure online space that uses cloud technology and serves as a repository of documentation. It ensures secure file sharing and makes the company’s file management more efficient. Online data room software allows companies to collaborate with clients, investors, and partners and share critical business information with them.

VDR is a cost-effective solution, which brings a lot of value to the business, including streamlined processes, enhanced workflow, better communication between team members, and more. And the biggest advantage best data room providers offer is security.

Here are the 6 essential features truly secure virtual data room providers should have.

Security certifications

Security certifications serve as the top indicators of security offered. Here are some of the most important standards for virtual data room providers:

SOC 1/SSAE 16/ISAE 3402

SOC stands for System and Organization Controls. This certification from the American Institute of Certified Public Accountants proves that the use of financial statements is restricted to the management of the service organization, user entities, and user auditors.

SOC 2 Type II

SOC 2 is somewhat similar to SOC 1, but it’s also for handling financial documentation. SOC 2 proves that the virtual data room software is assessed according to the SOC Security Principles.


If you are working in the healthcare industry, it’s important that the virtual data room provider is compliant with the U.S. Health Insurance Portability and Accountability Act of 1996 (HIPAA). It shows that the company adopts national standards for electronic health care transactions and protects sensitive patient data.


United States International Traffic in Arms Regulations (ITAR) controls the export of defense-related articles. It requires that no non-US person can have access to the data stored in ITAR-compliant environments.

ISO 27001

ISO 27001:2013 is the international standard, which ensures that virtual data room providers use the best internal practices for security, availability, and data privacy verification.

Privacy Shield Compliance

The Privacy Shield allows transferring personal data from the EU to the US. This compliance is especially important if you’re working with remote teams that are located in different parts of the world.


GDPR stands for General Data Protection Regulation. It’s a regulation in EU law to maintain the integrity and personal data privacy. Deal room software should be compliant with GDPR to avoid issues with exchanging data.

Granular permission settings

Granular permissions allow you to manage users’ ability to view, download, print, or upload documents. You can also manage whether a user can edit files based on the user’s role in the project. Admins define user roles and access rights. They can also revoke them at any time. Administrators can customize document permissions and control the access to each file.

Customer-managed encryption keys

Data protection is extremely important in the cloud industry. There are extra security measures, which help users of secure data room services to match their compliance requirements. Customer-managed encryption keys (CMEK) is a unique security control, which provides the IT teams of the organization full control over the encryption keys.


Best data room providers give their clients options to choose key management software and storage location for encryption keys. Also, with CMEK, users can possibly control the data stored in cloud infrastructure. Some virtual data room providers also offer compliance reports from key management systems for better compliance monitoring.

Multi-layered data encryption

The  files that are uploaded to the data room are transferred with a high-grade TLS protocol. They are also encrypted with 256-bit AES keys. Moreover, encryption keys and key vaults are securely stored separately from the encrypted data.

Dynamic watermarking

Among the important security features is dynamic customizable watermarks. These usually contain the user’s name, IP address, date, and access time. Watermarking helps to identify the source of the document and prevents it from being copied.

Time and IP-address кestriction

The administrators in virtual data rooms can also restrict login into the data room from the particular IP address. There are even more advanced features available, where admins can configure policies for session duration and file access expiration date.


Security of files should be the main aspect you need to check in virtual data room providers. When choosing the provider for your business, make sure that it has all essential security features and compliance. This will help to avoid issues with data breaches and leakages of sensitive information.

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