Virtual Data Rooms vs Free Cloud Storage

Before the Internet became an integral part of our lives, business companies stored their sensitive data indoors. However, this storage method brought many inconveniences, including security gaps and disorganization that impacted productivity and the speed of transactions. The global web has been able to simplify many business processes greatly, and most companies now store data online. However, entrepreneurs should still choose how to hold their documents carefully. This article will look at the main difference between data room and file sharing programs.

What are file-sharing programs?

Cloud technology is at the heart of all virtual data rooms and file-sharing programs. They allow for seamless and fast sharing of data on the Internet from any space and location. However, this is probably where the similarities between the two platforms end. Shared file-sharing platforms are not suitable for all uses. They are great for use in the domestic aspect of our lives, but they are not ideal for corporate use, and you can see that from the pros and cons of this solution.


  • Mobility and quick access
  • Ample storage capacity for a single user
  • Integration with other servers, such as e-mail


    • No ability to control data sharing
    • Very weak security infrastructure
    • Limited set of tools for document and user management
    • Functions are not automated, so there is a high risk of human error

What is a virtual data room?

A virtual data room also offers services for storing and sharing documents. However, these solutions provide a high level of security on par with bank security because they comply with international security certificates. As a result, they can be used in various complex business processes such as fundraising, due diligence, mergers and acquisitions, IPO, etc. In addition to security, VDRs offer several other benefits that will benefit businesses.


      • Detailed document access control
      • Multi-level data protection
      • Permanent responsive customer service
      • Document management tools and other customized tools


      • Higher cost (more than publicly available storage)
      • May take time to adapt and learn how to use
      • Some VDR providers do not provide flexible integration

Virtual Data Rooms vs. Free Cloud Storage – Security Differences

Security is the top priority for businesses when it comes to document storage. Security breaches and data leaks can cost enterprises a huge loss of money and damage the reputation and trust of both partners and customers. Unfortunately, cloud-shared storage is best known for stories of data breaches because it doesn’t track access to data, and it doesn’t offer features to limit interaction and data visibility. As a result, hackers can easily break into the space unauthorized because if they have a link to a document, they have access. At the same time, virtual data rooms offer layered security that starts with login protection and ends with automatic reporting of all user actions within the space. The main security features of VDRs include:

      • Multifactor authentication – protects login and requires an additional one-time code
      • Data encryption – encrypts documents during storage and exchange so that if they are stolen, the content of the file is inaccessible to intruders
      • Detailed access control for the documents – the administrator himself decides what the user may do with this or that document. For example, he can forbid copying, printing, downloading, forwarding, editing, and screenshots of the paper
      • Watermarks -store all the information about who did what inside the file