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A Virtual Data Room or Dropbox: which should you use?

Posted on by Confiex Team

Last updated on June 26th, 2023 at 11:52 am

INTRODUCTION

Most of our business today happens in the virtual space, thanks to the internet. Cloud based storage options like Dropbox make it easy for people to collaborate across vast distances by enabling easy storage, sorting and sharing of documents. While Dropbox offers many other features like back-up and sync, offline access and many productivity tools similar to a Virtual Data Room, it falls short in comparison to a VDR in terms of its data security mechanism and privacy.

Security Mechanism

Dropbox is more like a variation of your personal drive. Here you create a folder and give access to others. It is more of a one size fits all solution. Its tools and user interface are quite limited in scope and flexibility.

When your data is stored in a consumer service like Dropbox unauthorized access and data theft can be difficult to detect or prevent, because its security mechanism is bare minimum. Here your data sharing is via publicly accessible links. A Dropbox account can be accessed from anywhere using a computer, mobile or tablet. Worse yet, files that have been intentionally or inadvertently been switched to ‘public’ can be accessed by anyone with the link irrespective of whether they have a Dropbox account or not.

Dropbox neither provides client-side encryption or creation of private keys, however it allows the client to add their own additional layer of encryption, if they wish. But people or organizations using a file-sharing platform would not themselves know how to encrypt their data and would have to entail additional expenses of an IT expert for that.

Virtual Data Room

While on the other hand Virtual Data Room offers a high level of security and round-the-clock surveillance. VDRs offers levels of user customization and can get granular as you can restrict access to files by creating multiple groups and folders. They offer not only encryption and password protection, but also the ability to determine who can access the files as well as specify the timings when these files can be accessed.

VDRs also provide real time notifications that alert all participants about who logged in, when did they do so and which documents they viewed or modified, comments they posted or new documents they uploaded.

Additional features like personalised watermarks or tools that allow for redaction, block copying, printing or saving further enhance the security measures of a VDR. More over these features remain enforced even after the document is taken offline for example saved in a user’s PC.

These features are not available through Dropbox.

Lack of Customer Support

With Dropbox customer service is a major issue, you won’t be able to pick up the phone and talk to anyone about the problem with your account.

While a secure VDR often includes 24×7 live support and a data room project manager to help ensure that your data is appropriately secure and available. They also help you to learn how to use your system to better maximize your organizations data security. In most cases for crucial clients, you also have access to local representatives and affiliates.

A service like Dropbox is a great tool for personal use or for sharing some public document. But when it comes to the security and privacy of your online documents then it’s a VDR that most businesses trust. A VDR ensures that your company’s work can move forward without any security, privacy and access concerns as compared to a Dropbox.

 

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Confiex Team

The Confiex team specializes in providing premium virtual data room solutions tailored for businesses. With their vast experience in working with document sharing platforms, they have been actively supporting the Virtual Data Room community since 2015 by offering valuable information to users free of charge.

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About Confiex Data Room

Confiex Data Room is a trusted provider of premium virtual data rooms with over 5 years of on-ground experience and more than 11 years of industry experience. Headquartered in the financial capital of India, we have a strong partner network in the US and the UAE. Our global customer base spans across 100 countries, and we have successfully facilitated over 900 M&A deals, 100 IPO deals, and 90 NCLT deals. We are committed to providing users with valuable information on document security and Virtual Data Room (VDR) solutions. Discover more about Confiex Data Room.

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