Virtual Data Room Blog

Dropbox vs Virtual Data Rooms: revisiting the differences

20-Feb-2017 09:00:00 / by Maria Rubio

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There are some critical differences between Dropbox and Virtual Data Rooms. Dropbox revolutionized how we share documents online. Being the pioneer, it proved that one can easily store, sync and share files across devices with ease. They led the way to a slew of other providers such as Google Drive, Microsoft’s Skydrive, iCloud and Box. With all of these services already available why do Virtual Data Rooms even exist?

Dropbox Is Designed To Make File Sharing For Customers Easy Not Secure

The reason Dropbox came into being was because, at their core, they wanted to make file sharing easy for consumers. You want to share a document, photo or video with a friend or family member without struggling to upload a heavy file to your email? Just share the link to those files so that they can directly download it from the Dropbox server. You want to have a backup of your files online? Just dump them all in the dropbox folder, let it sync with the Dropbox server and you’ll have it all backed up! The target has always been the personal sharing!


Virtual Data Rooms Are Designed To Make File Sharing For Businesses Secure

The core of a Virtual Data Room is its security. Dropbox and other personal file sharing platforms lack the ability to remotely control a file through Digital Rights Management and does not allow for elaborate permission structures. This means that Dropbox can only protect your document during the transfer process. Once the document has been shared, the security ends! Contrast that with Virtual Data Rooms that secure your documents at all times, even after they have been shared by verifying, tracking and enforcing permissions.


Virtual Data Rooms and Dropbox Are Organized Differently     

Virtual Data Rooms are separate projects created specifically for particular transactions that are time sensitive. Some funds and companies also use these projects as corporate repositories. The point is that each specific data room is distinctly different from the next with zero chance of any interaction or confusion between the two. Where Virtual Data Rooms provide this security on a project to project basis, Dropbox contains everything in one main folder, giving the user a sea of all their data in one place.


Virtual Data Rooms Provides Service Along With The Platform Whereas Dropbox Only Provides The Platform 

Dropbox is a Do-It-Yourself product that helps you share mostly personal files. The leading Virtual Data Room Providers such as EthosData actually provides you with a dedicated team to run your transaction. Since Virtual Data Rooms are mostly used in running M&A transactions, the proactive approach of a service provider to ensure that all the parties have access without any glitches ensures that the sensitive timelines are met.


Dropbox versus EthosData is a comparison often made. The two are different. They were built for different purposes, run different codes and are organised in very different ways. Dropbox was created to make file sharing easy for consumers. That was their priority.

Virtual Data Rooms were built with security as their priority. They wanted to let businesses control their confidential information at all times. If you are a customer who wants to keep your private files online then use Dropbox. If you are a business that needs to share important confidential information with anyone then use Virtual Data Rooms like EthosData.

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