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Comparison of Virtual Data Room and Traditional File-Sharing Solution

Existing enterprise data sharing tools cannot meet the needs of users and organizations. Thus, modern companies look for various digital alternatives to ensure secure collaboration on business documents. Here is more about the difference between data room and traditional file-sharing solutions.

Reasons to choose a virtual data room

Network file hosting cannot be accessed from outside the corporate network or mobile devices. Furthermore, many existing collaboration tools used by IT departments are also complex or not available on third-party networks or mobile devices and do not allow easy sharing of data with third parties. In the absence of practical solutions for IT-managed communications, users naturally began to fulfill their needs through unmanaged consumer services.

The ubiquity of consumer file-sharing services poses a clear threat to corporate data security. IT departments have no control over how these services are used: what type of data can be shared, how data can be accessed, or with whom inside or outside the organization data can be shared. Moreover, access to and exchange data cannot be centrally monitored or audited, making it impossible to comply with IT standards and government regulations, especially in highly regulated industries such as finance and healthcare.

The enterprise file-sharing option has the following requirements:

  • Enterprise-grade security for data in storage and transit;
  • Ability to store data on and off the consumer side;
  • Simple, productive, pleasant user interface;
  • Control over data access and exchange by IT departments;
  • Real-time synchronization between all user devices, including mobile;
  • Full reporting and auditing of user activity.

Existing enterprise data sharing tools and solutions fail to provide people with the ease-of-use and power, inevitably leading them to turn to insecure commercial file-sharing services. It exposes the organization to various risks, from intellectual property theft to non-compliance with regulations. These risks will continue to grow until the IT department provides a better alternative that combines the convenience and performance of consumer services with enterprise-grade functionality and security.

Data room – securely managed file-sharing for the enterprise

Today, the presence of a successfully operating system of automation of office work and document flow speaks of the institution’s well-being and its management. It means the complete controllability of those subordinate to the leadership of the apparatus, their competence, solidarity, discipline, and interest in the most successful implementation of the assigned work. An automated system like a virtual data room makes it possible to carry out a prompt and efficient exchange of information between all parts of the production process, reduces the time required to prepare specific tasks, and eliminates the possible occurrence of errors in the preparation of reporting documentation.

Virtual data room is a service for business automation programs, for the help of which you can exchange any electronic documents with your counterparties. This integration of the data room service with programs for business automation allows the exchange of accounts, acts of typing of contracts, consignment notes, and other documents without the need to create external files between contractors. Compared to a traditional file-sharing solution, a digital data room offers robust security measures. There are the following advantages:

  • reliability and confidence in the authenticity of the document – the document is encrypted and signed by electronic signature;
  • control of the process of exchange of electronic documents at all stages – display of the status of the electronic document in the program interface;
  • cost savings (paper, printer cartridges, postage stamps and envelopes, courier services, archive space);
  • increasing the efficiency of business processes by reducing the time for document exchange;
  • obtaining a single integrated system for reporting, and electronic document exchange.
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