Virtual Data Rooms vs Free Cloud Storage

For most modern enterprises, a practical solution to the problem of organizing work with large volumes of documents is the creation of electronic data storage. This project’s implementation is possible via the virtual data room or free cloud storage. So, which one to choose?

Data room and free cloud storage for business needs

The creation of an electronic repository is a modern step towards the systematization and security of business-critical document flow. Documents will be completely safe when they are stored in a single database, encrypted, systematized, stored automatically, and protected from unauthorized access. Modern companies have two basic alternatives to organize electronic storage and collaborative workspace – free cloud storage and a virtual data room.

The principle of operation of any “cloud” storage is approximate as follows – a client program of the “cloud” storage is installed on a personal computer or laptop, and the path to the folders located on the hard drive, which are planned to be placed in this “cloud,” is prescribed. The client program copies information from the specified folders to the storage, monitors any changes in these folders and automatically makes adjustments to the cloud data storage.

A “cloud” service is a huge online flash drive on which data is stored and processed and to which you have access wherever you are and from any device.

The benefits of free cloud storage are as follows:

  • data safety in case of failure of your PC, laptop, tablet, etc.;
  • the ability to send links to a file larger than 20 MB via social networks or by e-mail;
  • sharing folders and files, and the ability to work with them online.

Dropbox is one of the pioneers of cloud computing. This service is secure and ideal for collaborating on documents and files. 2 GB of “cloud” space is provided free of charge. However, increasing the storage capacity up to 50 GB is possible.

What is the difference?

Nowadays, more and more companies transfer their daily business operations to a virtual data room.  A data room is a modern solution for storing and processing business documentation, which allows employees to optimize and speed up business processes and protect information from unauthorized access.

An important advantage of the data room compared to free cloud storage is that software provides a high degree of safety during online collaboration and security of documents. After being converted into electronic form, the latter receives reliable protection against damage, destruction, or loss through negligence and malicious intent. In addition, the data room includes a data backup system that minimizes the impact of force majeure and prevents damage or loss of documents in the event of a hardware or software failure.

The operation of the data room security system is based on the principle of access sharing. This technique allows business leaders to:

  • identify users;
  • determine the boundaries of their rights to perform certain actions; 
  • set the level of confidentiality;
  • give the user the ability to use an electronic signature;
  • determine the possibility of access to encrypted documents.

In other words, information of different levels of secrecy is stored and processed in the electronic archive. And each user has their scope of access to this information: permitted objects and actions with these objects. Access volumes are strictly controlled. You can create several levels of access: from the lowest, which implies access to document forms, to the highest, which provides access to all information. But such broad powers should be vested in a minimum number of people in the company. Thanks to these security measures, business-critical documents will always be protected.

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