Advancement in technology over the years has really revolutionized how we share and store data. In the past, data was stored in a physical cabinet mostly in paper format. To secure the data, physical locks could be used or security guards hired to protect the data. Accessibility was another challenge, only one person or a group could access data at a time.

In the recent past, conventional cloud data storage methods were birthed. This started with Dropbox, and then others including Google Drive, iCloud and Microsoft’s SkyDrive followed suit. This seemed like the best invention ever. To share data with your friends or family, or you needed to do is upload it to Dropbox, store it in a folder then share a link in their email.

To backup up important documents such as photos, videos, audios or word documents you simply store them on Dropbox. From here, you can access them at any time from any gadget that has a connection to the internet. There is no wasting time uploading large files to your email anymore. Well, this looks like the best plan. Until you meet the real substance. Virtual data rooms.

A virtual data room is basically an online warehouse. It stores all the data of a company be it financial, background, organizational and its dealings in a highly secure manner. Today’s global business economy entails corporations spanning over many countries and even continents. A VDR enables critical information to be shared among this corporations efficiently and securely.

As much as virtual data rooms and conventional cloud storage share some similarities especially in online storage, there are major differences, read more from virtual data room reviews. The main differences are as listed below:


The main purpose of conventional cloud storage is data sharing. Security is of less concern. In fact, once you have shared a document, security is over. On the other hand, virtual data rooms offer high levels of security. Data in VDR is highly organized and stored in different levels. Every data level is protected to ensure that there is no leakage of information to unauthorized persons. Besides, data permission structures have been put in place. Hence, to ensure high data security over the internet, think virtual data rooms.

Customer support.

Whereas conventional cloud storage only offers you a platform to be able to store and share data, VDRs also offer services. Most leading VDR service providers offer you a dedicated team that helps you to run your transactions smoothly. Since most VDRs are used to run M&A transactions, the service provider has to ensure that deadlines are met and that all the participants have sufficient and easy access to the data required.

Easy Control.

VDRs offer an easy way to manage data across different users. You can limit the accessibility of all the folders and files, stop certain users from accessing selected data among other functionalities. With proper knowledge, you can basically manage your virtual data room however you want. In cloud storage, however, this is not so easy nor viable for companies.


Virtual data rooms enhance the security of documents that are shared over the internet, unlike conventional cloud storage systems. Therefore, the type of data stored in these two platforms is different. Data such as financial statements, government compliance documents, legal documents, contracts and insurance information is stored in VDRs due to the high level of security required.

For conventional cloud storage, documents including photos, images, presentations, minutes and memos can be shared here. These documents do not require high levels of security.

In summary, VDRs are convenient and highly profitable to governments, businesses, and corporate organizations. This is because they offer a highly secure and functional environment that enhances collaborations among different stakeholders.

For personal transactions such as backing up your photos, documents or sharing non- sensitive information over the internet, then it is best to use conventional cloud storage. This will efficiently cater for your needs cheaply.

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