Lots of business people wonder why pay for a virtual data room when they can use Dropbox for free. To answer this question below you can see a comparison between Dropbox and the online Data Room to understand “why”.
What Does the Dropbox System Imply?
Dropbox constitutes a cloud storage system for folders or files that allows you to save space on your computer’s hard drive. What matters here is that the developers of the service position it as “the world’s first smart workspace”. Let’s look at its drawbacks.
Limited Number of Devices
The undeniable advantage of Dropbox was its versatility. Plus, Dropbox is compatible with a bunch of online services and mobile apps. An update to Dropbox’s terms of service removed that benefit. What’s the point of having clients for all platforms if you have to pay to use them? Fortunately, other popular cloud storage services have not yet reached the same degree of “enlightenment” as Dropbox. Therefore, they do not limit the number of connected devices.
Small Amount of Free Space
A free Dropbox account provides only 2 GB of cloud space. With the help of several tricky manipulations (sending referral links, inviting friends, connecting mobile applications), you can increase the amount of free space, but all this requires extra steps.
Unfavorable Tariff Plan
Dropbox is not the most profitable thing, even if you decide to pay. For $99/year, you get 1TB of cloud space (and remove the limit of three connected devices). It’s a little expensive, and it’s not a fact that you need a whole terabyte.
Lack of Synchronization for Arbitrary Folders
You can sync to your Dropbox cloud-only those files and folders that are placed in the Dropbox directory. You can’t back up your Documents. So, you can use a special application, but it’s still difficult.
Lack of Control over Your Data
This applies not only to Dropbox. All existing cloud storages have the same problem. By using them, you entrust your data to third parties. Even without going into empty talk about evil hackers and government agents, the data does not belong to you.
Network Data Room Specialties
The Virtual Data Room is the product of combining elements of a web content management system and a document management system. It is a repository of certain confidential corporate documents in electronic form and with a clear structure. It usually exists in the form of a website. A distinctive feature of the platform is the principle of a fireproof safe, namely: an increased level of protection for access and data transmission to external users and their physical safety.
This online portal is used as a tool for:
- due diligence of corporate transactions (mergers and acquisitions, bankruptcy and collapse, loan syndication, real estate sales, etc.);
- audit and compliance (compliance control);
- confidential business communications, when it is necessary to provide access to a single source of information to several users from any geographical point. Access to viewing (downloading) documents can occur only after appropriate authorization (often two-factor) from the portal.
As a rule, organizations providing access to data rooms require an international certification for the storage and processing of confidential data ISO 27000 (ISO27001).
Why Do You Need an Online Room?
By creating a virtual room, you will receive:
- the ability to quickly conduct planning and meetings: do not waste time organizing conferences, create a virtual room once and use it when you need it;
- 24/7 access to the virtual room: your partners and customers will be able to connect to it regardless of location and time of day;
- saving time and money on the equipment of a real meeting room in the office.