Virtual data rooms vs. generic file sharing options

05. June 2019 | Drooms Global

When it comes to document management, virtual data rooms (VDR’s) are gaining the upper hand over generic file sharing services but what is behind their popularity? How can virtual data rooms benefit businesses?


Safe and effective document management plays a key role in business. Secure file sharing is especially important when engaging in due diligence and asset management where speed and security are in high demand. As data protection and cybersecurity concerns become more prevalent, a move from free generic file sharing options to highly encrypted and functional digital platforms has become common practice.

A business-first approach to file management

Although generic file sharing services offer certain features their digital infrastructure is not built with a business-first approach in mind.

By focusing on the user, VDR’s have a clear advantage over their traditional counterparts were security as well as user interface (UI) and experience (UX) are prioritised.

Many of their benefits begin right from the offset where customised service and support are available. Many virtual data rooms offer comprehensive customer care around the clock seven days a week in multiple languages.

Secure systems to guarantee data remains uncompromised

While generic file sharing providers tend to focus on the ease of sharing files and their protection during the initial data transfer, VDR’s also safeguard against data modification, processing or loss long-term and have a whole host of security measures built in.

To note just one example, in 2016, Dropbox had to admit a leak of passwords and email addresses of over 68 million of its users.

Since virtual data rooms focus on security during and after uploading, data breaches are less likely.

Drooms has always taken the privacy of its customers extremely seriously and takes various measures to ensure it stays that way.

  • Drooms is ISO 27001:2013 certified
  • Drooms and its software are GDPR compliant
  • Drooms’ high availability servers are maintained by Drooms GmbH in Frankfurt alone
  • Technical and Customer Support Services are managed by Drooms staff
  • Regular penetration tests are carried out to assess data security
  • Detailed real-time analytics down to a single document page are available
  • Individual granting of review, print, and/or storage authorisations at user and document level are provided
  • Multi-level authentication process with PIN and SMS come as standard

Both two-factor authentication and advanced permissions allow you to manage who has file access. Permissions in particular provide the ability to control the level of access being granted and can range from providing the ability to view individual files to being able to edit them in a number of ways.

Broader features to cater to business needs

The ability to control access and manage files is just one aspect of virtual data room’s broader functionality. Although it is difficult to dispute the ease at which files can be uploaded, generic file sharing software is not state-of-the-art.

Virtual data rooms cater to a variety of needs and can be configured and customised accordingly. Aside from supporting the likes of due diligence and c-suite communications, VDR’s have become an established platform for effective portfolio management. Offering a solution during the whole life cycle of assets enables users to address issues surrounding data gaps and varied file formats causing unnecessary process inefficiency and expense.

Coming as standard many VDR’s are optimised for mobile, have branding options, document translation capabilities and the ability to auto allocate files to the corresponding index point. Document review and annotation and highlighting features enable users to add detail and focus attention to part of a text or entire pages without altering the underlying content.

Fast and efficient service focusing on future innovation

Given the sheer volume of data being held and the urgency with which many are used, VDR’s tend to be configured with high-speed document processing capabilities reducing the queuing time to zero regardless of their size.

Unlike generic file sharing options whose operating model changes less frequently, virtual data rooms are constantly updating and innovating for the benefit of their users, some with the application of machine learning and artificial intelligence (AI).

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