Myths About Virtual File Sharing
June 12, 2016
Myths About Virtual File Sharing
Generally this idea falls into three areas: virtual data rooms, generic file sharing, or online collaboration tools. All three have their uses and their advocates, but the fact is that there is some overlap, and organizations may feel that all three are critical elements in communicating across wide-area networks.
Virtual Data Rooms
A VDR is an online information repository used for storing and sharing documents. Typically, it’s used to facilitate processes during secure transactions between remote parties. In the past, secure rooms were often reserved for meetings that involved the exchange of sensitive documents in confidential negotiations such as legal proceedings or corporate acquisitions. But the evolution of technology has made a virtual room more appealing in that it reduces the cost and time of travel, and the demands of setting and meeting schedules for the various parties involved.
Generic File Sharing
Online Collaboration Tools
In file sharing or collaboration tools, there is little to prevent employees from sharing sensitive company information that could lead to public embarrassment or even litigation. File security, detailed reporting, and advanced functions are features that most generic file sharing or collaboration applications do not offer. Nor is there much customer service support to resolve issues or answer questions.
Myths about the VDR
Online collaboration is a different tool from a file sharing service and has a different purpose. A VDR is not a file sharing service. File sharing allows users to post and share media with no regards for security. It is about providing a platform for frequent distribution of personal information. It is a poor choice for storing sensitive information, whereas a VDR offers both high security and granular control over file access.
VDRs were originally developed for lawyers to review documents in sensitive business negotiations. But the usefulness of a secure virtual environment is certainly not limited to big business deals. They are used in making board decisions, consultations, audits, projects, partnerships, refinancing, and more. Anybody who feels any need for privacy can take advantage of a VDR.
While most people use VDRs for each transaction that may come, larger organizations that have frequent or regular needs lease or set up their own data rooms in anticipation of ongoing requirements. It can essentially serve as a company’s secure library or document vault where sensitive legal and financial documents are stored. Access is granted by administrators when needed to specific documents. Access can also be scheduled for specific times, limited sessions, or require signing non-disclosure agreements before access is granted.
As with any service or technology, that is not true. You can assume that any VDR solution will involve document encryption, access control, and other basic security measures. But additional features for additional security, administrative functions, reporting, and supported media may differ from one provider to the next. In choosing the correct VDR solution you must first determine your needs.