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  • Joanna Dmitruk

Virtual Data Room vs. Google Drive: Choosing the Right Data Storage Solution

Updated: Oct 12, 2023


In today's digital age, efficient data storage and sharing have become integral to businesses of all sizes. Virtual data rooms and cloud storage platforms like Google Drive are two popular options for managing and sharing digital assets. While they share some similarities, they serve distinct purposes and cater to different needs. In this article, we'll explore the differences between virtual data rooms and Google Drive to help you make an informed choice for your organization's data storage and sharing requirements.

1. Purpose and Use Case

- Virtual Data Room (VDR): Virtual data rooms are primarily used for secure and confidential sharing of sensitive documents during mergers and acquisitions, due diligence processes, fundraising, legal proceedings, and other high-stakes business activities. VDRs provide advanced security features and customizable user permissions to safeguard sensitive data.

- Google Drive: Google Drive, on the other hand, is a versatile cloud storage and collaboration platform suitable for storing, sharing, and collaborating on a wide range of files and documents. It's well-suited for everyday document management, team collaboration, and content sharing, but it may not offer the same level of security and control as VDRs for highly confidential data.

2. Security and Access Control

- Virtual Data Room (VDR): VDRs prioritize data security. They typically offer advanced encryption, watermarks, dynamic document access control, and audit trails. You can grant specific permissions to users, allowing you to control who can view, download, print, or edit documents.

- Google Drive: While Google Drive offers security features like encryption and two-factor authentication, its primary focus is on ease of collaboration. It may not provide the same level of granular control over document access and rights management as VDRs, making it less suitable for highly confidential documents.

3. Compliance and Regulatory Requirements

- Virtual Data Room (VDR): VDRs often come with compliance certifications like SOC 2 and ISO 27001, making them well-suited for industries with strict regulatory requirements, such as healthcare, finance, and legal sectors. They offer audit trails and detailed reporting to demonstrate compliance.

- Google Drive: Google Drive complies with various data protection regulations but may not meet the stringent requirements of certain industries. It is essential to configure Google Drive properly and educate users on compliance best practices to meet industry-specific regulations.

4. User Interface and Collaboration Features

- Virtual Data Room (VDR): VDRs prioritize security and document management over user interface design and real-time collaboration. While they offer basic collaboration features, they may not be as intuitive for everyday team collaboration compared to Google Drive.

- Google Drive: Google Drive is designed for seamless collaboration. It integrates with Google Workspace (formerly G Suite), allowing users to edit documents in real-time, leave comments, and collaborate with colleagues effortlessly. Its user-friendly interface and collaboration tools make it ideal for day-to-day teamwork.

5. Cost Considerations

- Virtual Data Room (VDR): VDRs are typically more expensive than Google Drive due to their specialized security features and compliance capabilities. They are often used for short-term, high-stakes projects, where data security is paramount.

- Google Drive: Google Drive offers a range of pricing plans, including free and affordable options, making it cost-effective for businesses of all sizes. It's a budget-friendly solution for general data storage and collaboration needs.

6. Pro and Cons of both solutions

Pros and cons of cloud-storage services:



​Quick and hassle-free access

​Data sharing is impossible to control

​Sufficient storage capacities for individual users

​Exposure to breaches and hacks

​Integration with other services, such as email

​No automatic audit trails

Limited toolset and support

High human mistake probability

Virtual data room pros and cons:



​Detailed user and access management

​Cost more than public-access storage services

​Security standards compliance and certifications

​Might require additional training

​Multiple levels of data protection

Some VDRs lack integration flexibility

​Tailored tools and services

​24/7/365 live customer support with short response times


Choosing between a virtual data room and Google Drive depends on your organization's specific needs. Virtual data rooms excel in safeguarding sensitive data in business applications, during high-stakes transactions and compliance-heavy industries. Google Drive, on the other hand, is ideal for everyday document management, collaboration, and sharing for private use or within your organization.

A summary of the differences is very well presented in the following table prepared by the specialists at

Ultimately, many businesses use a combination of both solutions to meet their various data storage and sharing requirements. Careful consideration of your organization's needs, security concerns, and budget will help you determine the best option or combination of options to suit your unique circumstances.

About us

DealDone is a specialised company offering high quality information and data security products. We offer digitisation services and software in the field of modern technologies for the circulation of confidential information, classified information, sensitive data and the digitisation, security, encryption and sharing of data and documents inside and outside the organisation.

For more than 10 years, DealDone 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.

DealDone also owns the portals and, through which it supports transaction processes related to selling a company, raising capital and finding investors for a project.


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