Data rooms have absolutely revolutionized the way companies go through all the document-related processes. This technology eliminated the need to travel and, therefore, spend money, time, and other resources. A virtual data room allows businesses to save their budgets and accelerate deals. Also, this tool helps see processes more clear, spot setbacks, and make better data-driven decisions.
So there is no surprise that the data room market was valued at $690.59 million in 2019. And specialists expect its value to grow up to $1607.41 million in 2025. Of course, this tendency becomes a motivation for entrepreneurs to create new data rooms to get a piece of revenue. And as the competition becomes more challenging, VDR providers come up with new ways to win the battle. So here are the main trends you will see in the data room market in 2020.
The combination of versatility and simplicity
Just a couple of years ago some providers considered their focus on Mergers and Acquisitions or any other business process or industry to be an advantage. They were creating an image of a team that’s dedicated to perfecting a tailored solution. Therefore, the users saw such a provider as an impeccable option for their specific needs.
However, today one company can go through different business processes that involve documents, and a solution that works only for one activity seems rather useless. Some providers like iDeals figured the need for a versatile data room right away and spent all this time perfecting their solution to make it suitable for every industry and all the needs companies might have.
The more requirements a data room has to fulfill, the more features it should have. Thus, versatility creates another challenge for providers – to pack all the tools into the interface while keeping it as simple as possible. This is a very complex task, but iDeals shows that it’s possible to execute it successfully. This data room provider offers all the features businesses might ever need, but its interface is still very easy to use.
Sure, AI is still making its first steps. Yet, some data room providers already try to implement it in their solutions. For example, Ansarada uses artificial intelligence to automate the document management process and supply customers with useful insights into the activity of their partners in the data room.
As AI evolves, and new technologies emerge to make it simpler to implement artificial intelligence in different services, we expect to see more data room providers taking advantage of it. AI can help users to find required files, for instance, or to get a better understanding of the activity of other participants of a business process. Also, providers can use machine learning to offer clients customized agile workflows.
Open-source solutions and compatibility
Modern businesses use plenty of different digital tools in their workflows. And in 2020 a data room should fit all these instruments seamlessly and gather them together in a single workspace. Quite a lot of data room providers do their best to make their solutions compatible with as many third-party tools as possible. Yet, it’s a challenging process, and, perhaps, it’s simpler to offer open-source data rooms. Then clients will have a chance to customize their workflows by making a VDR compatible with the instruments they use.
The evolution of technologies brings us many interesting and useful ideas on how to improve business processes. And in 2020 we can expect data room providers to come up with new approaches to their software. The competition on this market is very harsh, and vendors will try to get as many customers as possible by implementing fascinating solutions.