Document protection software WatchDox now works better with Microsoft

A startup called Confidela has been working to give businesses more control over shared documents. With today’s release of version 2.0, Confidela’s WatchDox online software is now compatible with key Microsoft products like Office and Outlook. The Mountain View, Calif., company is also making an explicit challenge to more established products like Adobe LifeCycle and EMC IRM by offering a discount to companies who switch over.

The basic idea behind WatchDox is to share documents as easily as using email, while at the same time giving customers much greater control. You upload a document into WatchDox, then give the system the email address of those allowed to access it, and specify what they’re allowed to do — whether they can print it, share it, or just read it. No one has to install any extra software, or even set a password. The first time you use WatchDox, the program sends you an authentication email, but after that it remembers your computer. The program also provides analytics data about who is reading and printing your documents.

Of course, when you share documents, you often want people to not just read them, but edit them too. WatchDox’s document reader is based on Adobe Flash technology and didn’t previously allow for direct collaboration, but with version 2.0 users can download documents and edit them in Microsoft Office (if you’ve given them permission), then upload their changes. Also, WatchDox now integrates with Microsoft’s popular email software, so you can automatically send WatchDox links from Outlook, which is more convenient than opening a new application.

As for the Adobe and EMC discounts, Confidela says it will negotiate prices with individual customers, rather than set a specific rate for every product out there. Pricing for individual users starts at $49.95 per month.

Confidela raised a $5 million venture round last year from Gemini Israel Funds and Shlomo Kramer.