Are you still using free file-sharing tools like Dropbox to share confidential data? Well, if you are it’s time to weigh the Pros and Cons and consider using a virtual data room for your next transaction since a data room offers so much more than just “file-sharing”.
Let’s discuss this in detail:
What is a Virtual Data Room?
A virtual data room is a cloud-based solution that allows companies to store and share important files securely. But that’s not it. There’s so much more to a data room when it comes to sharing files efficiently. Options like advanced permissions, real-time activity reports, and custom watermarks give peace of mind. Though mainly used for financial transactions, IPOs, and fundraising, any business involved with the secure and specialized management of its data could get benefited from a VDR.
Why a Data Room is Better than Dropbox?
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.
For corporate companies, their data and information mean a lot hence for them using VDRs becomes the 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, they need a whole lot of manual effort to manage and organized documents.
Enhance Productivity
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 service 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. 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 below:
- 256-bit data encryption
- Multiple firewalls protecting the data centers
- Server backup
- Custom Watermarks
- Controlled Access
Control Who Sees What
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, and what they have access to. This is too much to ask from traditional file-sharing services like Dropbox.
Professional Supervision and 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 of the worst user guidance and horrible configuration. The virtual data room services will assist you or your IT personnel with the uses and configuration of the data room in the most effective and effortless ways.
Virtual data rooms could help you close your deals faster by managing the data and access of the users.
Try FirmsData for your next transaction!
