Generic Cloud Storage programs like Dropbox and Google Drive allow users to store their personal videos, music, photos, personal documents and other items in one location. These programs sync with a person’s phone, computer and other devices and update automatically to reflect whatever changes are made. Typically they have full sharing functionality like collaboration, user messaging, free storage, media streaming and folder sync.
However for sensitive documents these programs offer no to little security and are geared more towards personal use instead of for business projects.
Customer service, advanced functionality, complex reporting and security are all very important features that are not offered by generic filing sharing services. The development of virtual data rooms were designed to keep critical information safe, give administrators complete control over sensitive and confidential documents, and provide selective access features.
Generic File Sharing Program (GFS) Concerns
When GFS is used by employees for sensitive information it can compromise security. That is because GFS systems have not been designed to handle certain document sharing processes like due diligence.
Limitations in being able to track changes and reporting functionality
Not being able to determine who deleted files or folders and no process for recovering items that have been deleted.
Limited infrastructure
The potential for data security being compromised if documents are viewed by the host for advertising purposes.
It may be possible for GFS hosting companies to have some licensing rights and control over documents that have been uploaded to them.
Personal information might be shared or sold to third parties.
Concerns regarding security when it comes to general file sharing programs may be solved through using specialized secured document sharing services like a virtual data rooms. They have been specifically designed for numerous projects requiring high security levels like clinical trials, due diligence, business capital raises, legal transactions, merger and acquisitions and more.
The Solution Provided by the Virtual Data Room:
Provides businesses with the ability to correctly run due diligence
Remain in compliance with regulatory authority requirements and governance
Allow for Bates numbering and improve litigation support
Support for advanced reporting and multiple users
Allows for watermarking and data encryption
Restricts who may save, copy and view documents
Information that is uploaded is never shared or sold
Archives are created of all data that is uploaded
Unlike generic file sharing services, virtual data rooms provide an effective and easy way of managing document permissions, security and revoking user access any part of the project, including after it is complete. Users are provided with real time notifications regarding activity inside the data room so that they are kept updated with any information as soon as it is available.
When security isn’t an important priority then Generic File Sharing services are ideal for personal use. However, for sharing legal, financial or confidential corporate information, a virtual data room provides the necessary levels of communication, reporting and security that business environments need.