What is the difference between virtual data rooms and other “secure” file-sharing platforms?

The turn of the year is just around the corner and with it often new rules, regulations, guidelines or laws. Above all, this affects the IT governance in your company, because: The topic of IT compliance is becoming more and more complex and in 2018 there are numerous new requirements for companies and thus your IT security. At the same time, individual departments and employees continue to use software solutions or cloud services that do not meet data protection or compliance requirements. In this context, we would like to show you once again in detail the numerous advantages that a virtual data room offers compared to conventional cloud storage solutions such as Dropbox, Google Drive or Microsoft OneDrive. The differences in functionality primarily affect the safety-related functions. Virtual data rooms have established themselves in recent years, especially for due diligence reviews (M&A, financial and real estate transactions) and against this background offer very extensive security and control functions.

Why Cloud Storage, File Sharing And File Hosting Services?

Quite a few specialist departments in companies use cloud storage or file sharing services to exchange important project documents with customers or business partners. With these solutions, however, data protection is neither adequately guaranteed nor can most compliance guidelines in companies be observed. In fact, file sharing providers such as Dropbox and Co. only made the use of cloud storage popular a few years ago – even in companies. In addition to the American providers of cloud storage, the market now offers countless, often free, alternatives to cloud storage, cloud storage, file sharing and file hosting services. But be careful: What may be sufficient in terms of security for private use can of course not apply to the processes of data exchange in your company: When it comes to exchanging sensitive documents such as balance sheets, construction drawings or contracts, a virtual data room such as netfiles, the only secure solution. With conventional cloud storage, file sharing or file hosting services, confidential data is not adequately protected against industrial espionage or other misuse. Especially with regard to their functionality and control options, conventional file sharing services offer far less than a virtual data room. After all, it is primarily the cross-company exchange of data with business partners that – in addition to the risk of the data falling into the wrong hands – harbors the risk that the compliance requirements in companies are not observed, often unknowingly. Last but not least, with the constant stream of new regulations and growing compliance requirements, security and data protection in terms of cross-company data exchange will have more priority than ever in companies in the future. Comparison: VDR versus file sharing services A VDR offers really secure and traceable collaboration within the company and beyond its borders. With the virtual data room, the aspect of security always takes precedence over the possibility of sharing data as widely as possible – the latter usually has priority when using file sharing services. The list of additional functions that a virtual data room offers is crucial for secure data exchange between companies: The most striking difference compared to file sharing services are the security functions. What conventional cloud storage solutions such as Dropbox or GoogleDrive cannot do, are for Company essential functions

Data Protection

The virtual data room with a big advantage over Dropbox & Co. Of course, the topic of encryption is of the utmost relevance, especially for companies. However: Encrypted data transmission is only part of the security chain. The storage or filing of the data in the cloud should also be encrypted. And here users of the netfiles data room can rely on 256-bit encryption of the data. In addition, netfiles GmbH offers you advantages in comparison to American providers with regard to data protection and protection against potential access by state bodies. netfiles GmbH is a German company with headquarters, development and hosting in Germany and works according to the strict legal data protection regulations of the Federal Republic of Germany and requirements of the EU (data protection guidelines and DSGVO). The netfiles servers are located exclusively in highly secure, certified data centers. The latest software, encryption and security technologies ensure that your valuable data in netfiles is reliably protected against unauthorized access and data loss. Conclusion It is obvious that virtual data rooms are far superior to file sharing services in terms of security and functionality. When it comes to sharing uncritical files widely without having to monitor them over the long term or comply with compliance requirements, the use of file sharing services such as Dropbox or Google Drive may be sufficient. The virtual data room, on the other hand, is suitable for professional use in companies and offers maximum security for the audit-proof exchange of business-critical data.