Compendious Comparison of Virtual Data Room and Traditional File Sharing Solutions

Compendious Comparison of Virtual Data Room and Traditional File Sharing Solutions

The Virtual data room has become the basic need of every business organization especially in corporate sectors. It has gained immense popularity among users and is used on a huge scale due to its incredible and secure data storage and file sharing features.

However, a large number of businesses are still unaware about this incredible tool due to lack of digital knowledge and most people still rely on traditional applications for data storage without knowing the safety loops. However, in this blog, we will try to bring facts into the light by comparing the virtual data room and common file sharing tool by taking the example of Dropbox, emails and Virtual Data Room. But first let us describe what a virtual data room is.

What is a Virtual Data Room?

Virtual data room is an online database that allows companies to store and share important files or information securely such as transaction files also used as ongoing data sources. It is used for secure storage and sharing critical and sensitive corporate data especially confidential data used in deals financial, legal, and tax matters.

Single Tool Serves Various Purposes

File sharing and storage services like Dropbox are convenient for users but fail to provide the security level which is required for users’ crucial data. Dropbox has tailored the cloud technology and gives features of storing and saving data like images, videos or some doc files. People used Dropbox because emails are not sufficient or capable of sending big files in one go.

On the other hand, VDRs are built for purposes of providing a safety wall against online breaches and giving utmost security to the user’s data. For corporate companies their data and information mean a lot hence for them using VDRs become first priority as a tiny breach in data security can lead to disastrous results.  

Apart from security, virtual data rooms offer incredible features that allow them to manage and organize documents effortlessly. Where traditional file-sharing tools lack this feature, so it need whole lot of manual efforts to manage and organized documents.

Enhance Productivity

File sharing solution services like Dropbox provide only file sharing features but with VDR it is not the case. A Dropbox user can store or upload files in a single place and can’t categorize them or separate files automatically. However, VDR offers features that make file sharing a cakewalk.  

Many data room services providers offer help in setting up the VDR in the simplest manner. Moreover, you can add them as team members to set up the data room.

Another feature of VDR is automatic numbering and indexing and automatically creating folders of files that help in organizing every single transaction individually. This saves a hefty amount of time and boosts the productivity of individuals as well as organizations.  

Optimum Level of Security for File Sharing

Corporate data needs the top level of security consequently, virtual data room is chosen by industry leaders as it provides top-notch safety and security features as compared to traditional file-sharing services.  

Dropbox and emails or other file sharing solutions are made only to focus on data sharing not providing security from online threats or data breaches. They protect the files on the basis of a basic level of password security, and we all know passwords can be hacked and easily be forgotten as 78% of users forget their password and tend to reset it. On the contrary, VDRs offer high-tech and multilayers of security that keep data safe and secure. Have a look at some of the features mentioned under;

·        256-bit data encryption

·        Multiple firewalls protecting the data centers

·        Server backup

·        Fence-view for documents

·        Digital watermarks

·        Access restriction depends on time, IP, and other control parameters

Manage and Control Access of Files

The primary feature of virtual data rooms that grab the eyes of corporate users is managing and controlling file access. It allows multiple parties to have access to the data room simultaneously and you can control whom to keep out and keep in the data room. This allows the possibility of dealing with multiple deals without accessing the data file stored in the virtual data room. This is too much to ask from traditional file-sharing services like Dropbox.

Professional supervision and onsite support

Virtual data rooms need to be applied rapidly to enable an upcoming deal, so it’s significant for VDR users to choose effortlessness and ease over multifaceted, cumbersome features. We can use the Box story as a perfect example for worst user guidance and horrible configuration. The virtual data room services will assist you or your IT personal with the uses and configuration of the data room in the most effective and effortless ways.

Each company has a different nature of work that requires a different kind of assistance for using the data room. The perfect guidance is all you need for your VDR setup for best results.


Virtual data rooms are important tools for corporate businesses and industries, and utter necessities for others. It may be different in terms of features, and price, but finding the apt solution can significantly accelerate the sharing process and enhance the document management strategy.