“Why would I pay for a virtual data room when I can just use Dropbox for free?” Is a question we hear when speaking to different emerging companies. To answer this question, the following is a comparison between Dropbox and SecureDocs to cover the, “why.”

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Dropbox and SecureDocs were built for different purposes. If you are sharing public information with a group of employees, sending photos or documents to friends or family then Dropbox is a great, cost effective tool. However, when it comes to sensitive documents that should not be shared publicly, a free solution like Dropbox will not suffice because:

A) The security levels do not ensure complete privacy and protection for those documents - these are critical documents and having them seen by the wrong people can be devastating for a company.

B) The system was not built for properly organizing and controlling those documents. This makes it hard to track who has access to which documents.

A virtual data room like SecureDocs is built specifically for handling important and sensitive business documents in a highly secure yet easy to navigate system. The virtual data room is made for businesses that need to raise funds, share financial information with auditors, store legal or confidential employee information, and other professional activities in a highly secure and organized manner.


According to The Mac Observer, IBM restricted employees from using Dropbox, Apple’s Siri and iCloud, and other online apps and services due to security holes.

Aside from the general security being limited, Dropbox encountered a severe security failure less than a year ago when, for several hours, accounts were accessible by anyone who wanted to sign in with any password. According to Dropbox less than 1% of users were affected, however, with 25 million users at the time, that means close to a quarter of a million accounts were compromised.

This demonstrated an important lesson - a single password is just not enough protection for important files. SecureDocs has a long list of security measures and features that we’ve implemented to keep our virtual data rooms impenetrable, however, one of our greatest measures is our login process with two-factor authentication. Even if your PC is one of the 100 million that are compromised by password-sniffing malware, your account remains protected because there is an additional code needed at login that is sent via SMS message to your cell phone. Without that unique code, there is no access.

Additional security measures include file encryption in transit and at rest, SAS 70 certified data centers, 99.9% uptime, and audit logs.


Dropbox features are made for easy viral dissemination of information. The service is meant for spreading information to a lot of people fast. There is basic file upload, file download, file storage, and file sharing capabilities.

 SecureDocs has features that provide the same basic functions that can be found in Dropbox for sharing and storing along with productivity-enhancing features and robust security features to keep sensitive information safe.

SecureDocs Features include:

  • Indexing Bulk upload/download

  • Permission-based user roles (including view only, no printing)

  • Customizable NDA

  • Audit log

  • Watermarking

  • Two-factor authentication

  • Privacy blind

When To Use Dropbox, When To Use SecureDocs Virtual Data Room:

Use Dropbox when sending out promotional materials and public information to large groups of people. It is incredibly convenient to spread information quickly for little to no cost.

 Use SecureDocs when storing or sharing sensitive information (client lists, cap reports, financial records, employee files, and other documents of record) that need to be kept confidential for the sake of the company or the client. Gain confidence from colleagues, clients, and investors by ensuring the protection and organization of important information.

Dropbox VS. Virtual data rooms