Tech & Innovation

Dropbox vs Virtual Data Rooms – How Do They Differ

Dropbox vs Virtual Data Rooms

Both Dropbox and virtual data rooms are important and useful for data storage. Dropbox has made file sharing easy, but not secure. Instead of downloading and then uploading a large file to your email, you simply share the link in a shared Dropbox for another person to access.

On the other hand, a virtual data room is ideal for storing sensitive information like business deals. You can use a data room like Firmex for merger deals or to store secret information. Here are some features of both tools that show their differences.

Secure File Storage and Data Sharing

Dropbox is essentially important for sharing data or creating a common workspace with others remotely. For instance, when working over the weekend, you can allow access to particular company documents to your colleagues to enable workflow synchronization instead of sending such information individually to every other person.

If you have a group of 10, it makes sharing files online easier than using your email. It is also possible to do the same with a virtual data room but in this case the level of security increases.

When the information to be shared is sensitive, companies choose to use a virtual data room in place of a Dropbox. You can share virtually anything with a Dropbox, but a virtual data room comes in handy when you want financial and legal company documents.

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Difference in Organization

A Dropbox and a virtual data room have different ways of organization. In a Dropbox, you can only create one folder and share that folder with others. In a virtual data room, you can create several groups and can create several folders within those groups.

This feature allows you to restrict access to files. Only those with access can view specific files. You can limit access to files to specific departments. That is why virtual data rooms are better suited for companies as compared to Dropbox.

Service Provision

A virtual data room comes with in-built services making it more secure than a Dropbox. With Dropbox, you can connect all the services you wish to the platform. It allows all manner of third-party integrations.

This feature works differently with a virtual data room in which you only use the services that come with the platform. Several users can work securely in the data rooms and with anonymity.

That means you can work on files for your assigned department, without another employee from another department accessing your work untill unless the admin allows them access to those files.


When using Dropbox, you can make anyone an administrator. It is usually an open platform where you share public information to large groups of people within a short time.

However, with a virtual data box, only authorized personnel can become administrators. These include heads of departments so that they can limit access to sensitive data like company reports, financial records, and other confidential documents.

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