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Virtual Data Rooms (VDR) vs. OneDrive

Updated: Apr 19

In today's digitally driven world, the management and storage of data play a critical role in the efficiency and security of businesses and individuals alike. Among the plethora of options available, Virtual Data Rooms (VDR) and OneDrive are two prominent solutions offering distinct features tailored to different needs. Understanding the differences between them is essential for making informed decisions regarding data storage and collaboration. Let's delve into the disparities between VDR and OneDrive.



1. Purpose and Functionality:

 

Virtual Data Rooms (VDR):

Virtual Data Rooms primarily serve as secure online repositories for storing and sharing sensitive documents, particularly during financial transactions, legal proceedings, mergers, and acquisitions. VDRs are designed with robust security features to ensure confidentiality, compliance, and control over access rights. They facilitate due diligence processes, allowing multiple parties to review, annotate, and exchange documents securely.

 

OneDrive:

OneDrive, on the other hand, is a cloud storage service provided by Microsoft, integrated with its suite of productivity tools. It offers users the ability to store files, documents, photos, and videos in the cloud and access them from any device with internet connectivity. While OneDrive does provide collaboration features, its primary focus is on personal and business file storage, synchronization, and seamless integration with Microsoft Office applications.

Virtual Data Room SECUDO

Microsoft OneDrive

Support for more than 40 file formats

Support of tools from related environment (Word, Excel, Power Point, MS)

Automatic indexing

Synchronization of user data

PDF merging

Easy saving of data from applications

File versioning

Synchronize settings - backup and synchronize settings on all devices

OCR search engine

Access control

User management - assign roles in groups, temporarily limit access, set notifications

Alerts/notifications

Tracking of user activity and possibility to download the whole history

Archiving and storage

Advanced reports and possibility to generate them in Excel form

Resource library

Personalization of the system

Resource sharing

Dynamic watermarks applied to documents


Assigning permissions to documents and Q&A forum


Ability to create rules and regulations for using the VDR


Ability to create private/group notes


Q&A forum


Tool for generating project archive


2. Security Features:

 

Virtual Data Rooms (VDR):

VDRs prioritize security and compliance, offering features such as end-to-end encryption, granular access controls, watermarking, activity tracking, and two-factor authentication. These measures ensure that sensitive information remains protected against unauthorized access, data breaches, and cyber threats. VDR providers often undergo rigorous audits and certifications to guarantee adherence to industry standards and regulations.

 

OneDrive:

OneDrive also implements security measures to safeguard user data, including encryption at rest and in transit, ransomware detection and recovery, and suspicious activity monitoring. However, its security features may not be as comprehensive as those of VDRs, as its primary audience includes individual users and small to medium-sized businesses. Enterprises with stringent security requirements may find VDRs more suitable for their needs.

Virtual Data Room SECUDO

Microsoft OneDrive

Two-step verification

Two-step verification for logins from untrusted devices

Limiting login to the IP address of the device

Encryption of applications on mobile devices

Secure PDF format

Ransomware detection and recovery Monitoring of suspicious activity

SPY VIEW function

Email encryption (MS 365 subscription)

Dynamic watermarks

Encryption of personal storage (MS 365 subscription)

Data encryption

Password-protected links (MS 365 subscription)

Comprehensive reporting


Event history enhanced by blockchain technologies


Physical servers in Poland


Compliance with OWASP, GDPR & FSA requirements


User session restriction


Preloaded antivirus


Ability to download encrypted documents


Permanent deletion of files after project completion


Security certificate from the Cybernetics department of the Military University of Technology


3. Collaboration Capabilities:

 

Virtual Data Rooms (VDR):

VDRs excel in facilitating secure collaboration among multiple parties involved in complex business transactions. They offer features such as document versioning, commenting, Q&A sections, and real-time notifications to streamline communication and decision-making processes. VDRs also allow administrators to grant temporary access permissions and revoke them as needed, ensuring data always remains under control.

 

OneDrive:

OneDrive enables collaboration through file sharing, co-authoring, and real-time editing within Microsoft Office applications like Word, Excel, and PowerPoint. Users can share files and folders with specific individuals or groups, set access permissions, and track changes made to documents. While suitable for collaboration within teams and organizations, OneDrive may lack some of the specialized features required for complex deal-making scenarios.



4. Scalability and Pricing:

 

Virtual Data Rooms (VDR):

VDRs typically offer scalable solutions tailored to the needs of large enterprises, financial institutions, legal firms, and other organizations involved in high-stakes transactions. Pricing structures vary based on factors such as storage capacity, user licenses, and additional features like custom branding and dedicated support. While VDRs may involve higher upfront costs, they provide value through enhanced security, compliance, and efficiency.

 

OneDrive:

OneDrive offers scalable plans suitable for individuals, small businesses, and enterprise customers, with pricing based on storage capacity and the number of users. Microsoft often bundles OneDrive with its Office 365 subscription plans, providing users with a comprehensive suite of productivity tools alongside cloud storage. For organizations already invested in the Microsoft ecosystem, OneDrive may offer a cost-effective solution for file storage and collaboration.


5. Support:

Virtual Data Room SECUDO

Microsoft OneDrive

Training on how to use the VDR system

Online help

Support contact for all users

Microsoft 365 community forums

Manuals containing description of the system functionality

Administration center for account administrators

Training videos

Phone support for account administrators

Each project has a dedicated tutor

Business support available only in the US, Canada, UK, Australia, New Zealand and South Africa (English only)

Support 24/7/365

Additional paid Microsfot 365 professional help service (ProDirect)

All project maintainers and programmers are Dealdone Sp.z.o.o. employees, which significantly reduces the time between reporting a problem and solving it.


VDR available in 6 languages


Possibility of on-site training


Conclusion:

 

In summary, while both Virtual Data Rooms (VDR) and OneDrive serve as valuable solutions for data storage and collaboration, they cater to distinct needs and use cases. VDRs prioritize security, compliance, and specialized features tailored to high-stakes transactions, legal proceedings, and due diligence processes. On the other hand, OneDrive focuses on providing accessible, scalable, and integrated cloud storage solutions for individuals and businesses, with a strong emphasis on collaboration within the Microsoft ecosystem.

 

Ultimately, the choice between VDR and OneDrive depends on factors such as the nature of the data being managed, the level of security and compliance required, the scale of collaboration, and organizational preferences. By understanding the differences outlined above, businesses and individuals can make informed decisions to meet their specific data storage and collaboration needs effectively.

 

About us


For many years, Secudo Solutions Ltd has specialised in providing solutions related to the digitisation, archiving and sharing of documents in the form of Document Management System (DMS) or Virtual Data Room (VDR). The company has independently developed and marketed the SECUDO VDR system. SECUDO is a platform for secure digitisation, archiving, sharing and processing of corporate documents and data offered in the cloud, in a Software-as-a-service model, for business customers.

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