Data Rooms vs File-Sharing

Cloud technology is constantly evolving, which allows you to store even more data not on your computer’s hard drive, but in personal cloud storage on the Internet. In this article, we will compare two possible options for data storage and exchange – data rooms vs file-sharing.

Could technologies for business needs

Electronic document management is a high-tech and progressive approach to significantly increase the efficiency of enterprises. The guarantee of successful work is always the effective work of staff. But for quality service of customer’ needs, yesterday’s methods of information processing are no longer the best. Today it is necessary to have access to information resources and reduce time spent on various tasks. So, there are two popular SaaS solutions – virtual data room and file-sharing service that can solve these problems.

When you store data in the memory of your computer or smartphone, you can quickly access it. But only from this computer or on a local network. This is convenient, but not always and not in all cases. Cloud technology allows you to store data on a third-party server, which you can access only if you have a network connection.

The automation of business operations reduces the number of manual processes reduces staff shortages, increases efficiency, and helps to achieve better results in repetitive processes that do not require human intervention. It can also help build security into the company’s processes and improve the user experience, as well as reduce the response time to typical cyber incidents.

Data Rooms or File-Sharing?

File-sharing service is a SaaS technology that is also available as a cloud service. It enables organizations to electronically exchange (often sensitive) data of any size securely and reliably. The service includes software technologies that secure, control, document, and automate the entire process of electronic data exchange, be it inside or outside a company. It provides the transfer of structured or unstructured data of various types, including sensitive, compliance-related, or even very large amounts of data.

In recent years, virtual data room technology has been actively developing in the IT market. So, what is the difference? The fact is that the data room is more focused on secure storage and data transmission. Thus, security is a priority here.

With the data room solution, people can securely send, share and receive any files. Time-controlled or event-based systems are synchronized seamlessly. The solution brings security, transparency, and traceability to the transfer of confidential data from on-premises or cloud systems – and enables your teams to work more securely and efficiently.

So, data room security is reached by the following measures:

  • Authentication of information objects with which communication is carried out. Authentication mechanisms can be different. The most widely used cryptographic algorithms are RSA.
  • Access control complements authentication. Logical access control allows you to define for each file and for each application the authorized users and their rights (for money transfers, this is most often the right to sign and transfer these transfers.)
  • Usually achieved by cryptographic methods: information is encoded so as to remain incomprehensible to unauthorized persons, as well as persons who do not possess the keys to the cipher.
  • Central control. Controlled, traceable file exchange with any business partners, systems, and applications through central transaction management for all communication protocols
  • Data backups and archives can be stored on different media depending on specific requirements. A backup server is usually used, which coordinates the processes of copying and storing the created copies of data.