4 Ways – Virtual Data Rooms Outperform Dropbox

As a large chunk of data exchange takes place over the internet, cybersecurity is an issue that cannot be overlooked. A study by IBM states that around 2.5 quintillion bytes of data are generated each day. With such humongous amounts of online transactions, it becomes essential to develop systems that ensure efficiency and transparency throughout the process.

Virtual data rooms have emerged to tackle these problems, facilitating a secure exchange of data. Keeping abreast of the latest technological advancements, companies are increasingly adopting these systems. Businesses ranging from IT consulting to retail to healthcare have embraced this technology.

VDRs are generally used by large-scale organizations during important business deals that require utmost security. These are not merely digital archives; instead, an important interface between the two parties involved in the transaction. Businesses thereby follow a due diligence procedure before entering into a contract with authorities from the other side.


In recent years, various file-sharing solutions like Dropbox, which stores documents on the cloud, have become popular. A file-sharing service allows its users to upload files from any device onto the system, which it automatically syncs across all of their devices. However, the question that arises is, “how are these VDRs better than Dropbox?” Well, there are certain features that create a striking contrast between the two.

Distinguished Features of Virtual Data Rooms:

1. Top-notch Security:

A number of security breaches in the past few years have dented Dropbox’s image as a secure medium for data sharing. With highly sensitive information being shared among companies, ensuring the highest level of security is paramount to gaining users’ trust. VDRs were primarily developed with the objective of providing companies the ease to conduct their businesses efficiently. They come with international third-party security certifications such as ISO 27001:2013. A two-factor authentication process, including PIN and SMS, ensures that users are provided with a heightened level of security.

2. Better Organization:

Since virtual data rooms store documents containing large amounts of data, it becomes essential to segregate them into various categories. VDR numbers and indexes the documents post upload, thereby easing the navigation process. Besides, it provides advanced search functions, which quickly locates the desired information. Another benefit includes bulk file upload, compatible with over 25 types of file formats.

3. 24*7 Assistance to Clients:

Another area where VDRs stands apart from Dropbox is customer service. VDR providers offer this service round the clock. So if the clients encounter any issue while accessing documents, it can be dealt with at the earliest.

4. Additional Features:

Virtual data rooms are very dynamic and provide several additional features, such as customizable NDAs and watermarking. VDRs render all the control to the system administrator. Besides, the administrator can assign different roles to different users and document the same. In a virtual data room, the admin can audit the activities. They notify about changes via custom email alerts, which not only benefits the company by alerting the wrongdoings but also helps in gauging investor interests.



Simply put, Dropbox is suitable when one wants to share personal, non-sensitive information. Whereas, for companies wanting to access and store confidential data, for purposes such as mergers & acquisitions or capital raising, virtual data rooms are the go-to option.