Dropbox vs. Virtual data rooms

Data security means protecting not only the external perimeter but also communication channels, as well as competent management of identification and access to cloud resources.

Why Is It Highly Recommended to Choose the Virtual Data Room Over Dropbox?

Dropbox refers to tasks and services that are provided or hosted over the Internet for a fee. For some time, people have been able to store, process, and manage data over the Internet, but cloud computing characterizes paid services that do this on a much larger scale.

There are several factors to consider that will make you choose the virtual data room over Dropbox:

  • Security. Of course, this aspect will interest you the most. It is important to choose a developer who stores all the information himself and does not give it to subcontractors. Well, certification, of course. Plus testimonials, customers, etc.
  • Price. Most developers base their pricing on the space used and the amount of time the VDR is open. Some M&A law firms can afford to provide their own VDRs. If you only need VDR once, use services that will provide storage based on the amount of time.
  • Convenience and functionality. Here it is necessary to take into account the file format that the system can work with, whether it is possible to download zip, and on which OS it is available. If you are dealing with international transactions, it is important that the VDR is open 24/7 and supports multiple languages. Pay attention to whether there is a free demo version.

At the same time, for the heads of information security departments, the security of such virtual environments, provided by the technical characteristics of the VDR, is also important. Among other things, tools are important for them, allowing them to moderate user actions within the system and upload, for example, activity logs. Now the software market presents a fairly wide range of programs for the treatment of viruses. However, you should not calm down, even having some kind of software product.

The Main Difference to Know Between Dropbox and the Virtual Data Room

Do you know what a virtual data room is? Often referred to as a deal room, a virtual data room (VDR) serves as a safe haven for important company documents. For the most part, it is used in M&A transactions to speed up the due diligence process. Online you can compare virtual data rooms and their pros.

You may have some idea of what Dropbox is and what services it provides, but here we take a closer look at how it all works and why the cloud has so quickly become such an important tool. Chances are, even if you don’t know anything about cloud computing services, you’ve probably used them at some point.

Take a look at the main difference between Dropbox and the virtual data room:

  1. Dropbox is not completely virtual, and while your files may not be stored directly on your computer, they still need to be hosted on some hardware somewhere in the world.
  2. When you upload something to the cloud through a service like Dropbox, the file is sent over the Internet to a server—a real, tangible server.
  3. You need to protect the files themselves, located in virtual storage and cloud environments.
  4. It is worth paying attention not only to the usual functionality of delegating the rights to view, edit or manage a document to one or another employee or external counterparty but also to protect the file itself.
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