The Core Differences Between Data Room Software And File Sharing Platforms

Online file storage and sharing platforms are not new. These programs are convenient, inexpensive, simple, and effective for personal use. However, businesses should think a few times before using these devices because they can be very risky for storing confidential company information. In addition, they lack control and management features, in which case using a virtual data room might be your ideal solution. This article will define the main difference between VDRs and file-sharing programs. 

VDRs vs. File Sharing Programs – what are they?

File sharing services are those digital spaces that allow you to upload, create and store files in their repositories, and share them by distributing a link to the document. You decide who can view the document and edit it, but you do not have complete control. Your files can also be automatically synchronized on all your devices. 

At the same time, Virtual Data Room is also an online repository into which you can upload and share documents. Still, its main difference is the absolute security in every function of this space. Companies can upload any sensitive files, set a level of protection for each of them, and track the actions of all users. In addition, it has many additional tools that will optimize the company’s internal work, simplify it, and increase efficiency. 

Visit this page to find out the main differences between the two concepts. 

Feature set

So, to more clearly show the difference between a data room and a file-sharing service, we should start with the basic feature set of these two solutions. VDRs provide services for businesses, while file-sharing services are best suited for personal use. However, both programs also have similarities, such as easy access, sharing, and restricted access. 

Otherwise, VDRs offer more advanced features in every sense. They offer a plethora of features for security reasons. For example, you can restrict access to your data based on roles, and you’ll have an audit trail to track all the actions of other users in great detail. VDR also securely protects your login with dual authentication. Additional features include file version control, remote file locking, access times, etc. You won’t find all of these features in file-sharing services.

Security features

Both solutions use 256-bit encryption as security, protecting files from leakage by encoding data during storage and transmission. 

But recently, file-sharing services have come under criticism because there have been massive data leaks from these spaces. Their security measures are somewhat superficial. Data rooms are business-oriented, so they have certificates confirming their security. They also use data encryption, TSLs, IP restrictions, and more. And that’s one of the main reasons virtual data rooms can be an excellent option for managing sensitive company data. 

Control capabilities

Third-party vendors manage both VDRs and file-sharing services, but VDRs allow users more control over their space. Data room administrators can:

  • Manage access to any file, prohibit printing, uploading, copying, forwarding, and editing the file

  • Able to monitor all user actions and access reports of all events that occurred in the space

  • Instant notifications of any changes and updates within the space 

File sharing services don’t have any of the above, and they can only control access. However, that doesn’t mean that these programs are entirely unusable. They are great for sharing non-confidential information between employees or partners.