Virtual Data Room vs Dropbox

Dropbox is a great file and storage platform. It copes well with “everyday” tasks; many businesses and enterprises use it. However, each service has its advantages, disadvantages, and, most importantly, the regulations for use. Dropbox is good strictly for the tasks for which it is intended. For example, if you need to store corporate information, Dropbox is not for you. Why? Read about it below.

Insufficient data security

Corporate files may contain information that under no circumstances should fall into third parties. Therefore, you need to keep it in a safe place. Unfortunately, clouds like Dropbox don’t provide much protection. No vital encryption keys, double authentication, or flexible access settings would protect files from theft by company employees.

Does not comply with data processing and storage laws

Another stumbling block is the laws of the country in which you operate. Most states have regulations regarding storing and processing customers’ data at the company’s facilities.

Of course, the security standards of a regular cloud (for example, the same Dropbox) do not meet the requirements. Any user, having discovered this, can file a lawsuit against you, where he will demand compensation.

This, combined with poor data storage security, can lead to loss of money, customers, and your company’s reputation.

Few features

Cloud storage is designed primarily for storing files and sending them to other users. For example, you can send a link to the document and view or edit the file together.

Dropbox does not offer tools for auditing, analytics, large deals, document organization, online meetings, voting, watermarking documents, etc.

No flexible access settings

Dropbox offers you just a few access options. You cannot specify here which files can be copied, sent, viewed, edited, or printed by this or that employee of the company.

High price

It seems that cloud services are cheaper than specialized software. However, this is not the case at all. Especially if you need to add many users and make the most of the cloud, by increasing the amount by only 30-40%, you can already order a budget data room with many additional options.

Benefits of VDR

Virtual Data Rooms outperform Dropbox in all of the following ways:

  • To ensure security, encryption systems are used here, the same as in banks. There is also dual authentication.
  • Data protection in virtual rooms is such that it allows you to safely process and store customer data without worrying about reputation or the legality of your actions.
  • A huge number of functions of virtual data rooms are beyond doubt: auditing, big deals, joint viewing and editing of documents, batch uploads, watermarks, and online meetings. As well as many other useful additions.
  • Flexible access settings allow you to protect data from theft from the inside – only trusted employees who need the files to work can see essential documents.

There are many data room providers – some provide low-cost but high-quality services. Unfortunately, there are also quite expensive services that impress with their capabilities.