Tech Advice

Main Advantages of VDR over FTP server

Nowadays there are many ways to store and share files and documents with anyone and across different platforms. In this article, we will compare VDR and FTP server methods.

What is secure file sharing?

Storing and file sharing is an important part of any business today, and with the growing shift to telecommuting, businesses and organizations need to be able to share large files as quickly and securely as possible. Most of today’s data is transferred using online tools, so choosing a secure file-sharing service is critical to prevent security threats and keep sensitive data safe. Here are two alternatives – Data Room and FTP server.

What is VDR?

A Virtual Data Room (VDR) ensures multiple parties share and collaborate on a deal’s confidential data through a safe and encrypted web connection from any place. It makes VDRs an ideal electronic information system for those working on due diligence, real estate, M&A process, and other transactional work. Dealmakers can protect all their information in a Data Room, and then easily share, control, and track who access, edit or print certain documents.

What is FTP?

An FTP server is a computer connected to the Internet, usually permanently, on which a special program is installed that provides access to files and folders of this computer via the FTP protocol.

One of the most common types of FTP servers are shared, virtually free, access servers. Such servers are called anonymous. When connecting to an anonymous server, as a rule, login and password are not required. In some cases, to connect to an anonymous server you will need to enter an anonymous login and an arbitrary password.

The FTP data transfer protocol is used to view and download files located on a remote server to a local computer. This basic internet protocol is older than every HTTP user known today, but it still hasn’t lost its relevance. An FTP file exchange server is convenient for both private users and businesses, as it allows you to work with extensive and branched file structures.

VDR vs FTP: what is the difference?

The differences in comparison VDR over FTP server can be highlighted in the following statements:

  • The information volume limit for the FTP server user folder is 1 GB. If the set limit on the amount of information is exceeded, the user’s work on the FTP server is not guaranteed.
  • The FTP server does not allow you to view the information in the stored files over the network; to view the contents of the files, they must be copied to the computer.
  • To connect to the FTP server, you must use an FTP client program or a personal computer explorer program.
  • FTP transmits technical information, as well as login and password in unencrypted form without additional measures. To ensure secure authentication and data transmission, transport layer security can be used in conjunction with the protocol (FTP over SSL – FTPS).
  • VDRs let track bidders’ interests to understand who’s viewed or engaged with documents. 
  • VDR In-built search functions eliminate the time users take to look for files.
  • An internal Q&A system keeps all deal communications recorded, encrypted, and in one place.
  • When new content is added to the Data Room users are kept up to date with email alerts.
  • VDR enables more control over sensitive data. Files cannot be copied, misused, or leaked.