18 . 09 . 2019

GOOD PRACTICE Top 4 Advantages of VDR over FTP server

18 . 09 . 2019

Even today, the FTP server is a popular method for transferring files, enabling quick sharing of virtually any type of data. However, its use is full of restrictions and risks. For business purposes, it is better to choose an alternative in the form of a Virtual Data Room (VDR).

Key insights:

  • VDR is significantly more user-friendly and convenient than FTP servers, especially for non-IT users.
  • Setting up a VDR is quick and straightforward, requiring no specialist knowledge or installation, unlike FTP servers.
  • VDR offers superior security features, including GDPR compliance and EV SSL 256-bit encryption, ensuring data is protected at the highest level.
  • Unlike FTP servers, VDR supports a wide range of file operations, enhancing functionality for business operations.
  • The intuitive interface of VDR, designed with UX principles in mind can greatly improve UX and efficiency in file management.

FTP, or File Transfer Protocol, was created in the 70s by MIT student Abhay Bhushan. It is a widely used client-server communication protocol. The operation principle is simple: the client sends instructions to the server, which processes them, allowing users to access services or network resources.

Despite its simplicity, for a company to create its own server and use it to share data with its clients is neither cost-effective nor convenient, unlike VDR.

Limitations and disadvantages of FTP servers

Over the fifty years of its existence, FTP has not only remained popular but also introduced an encrypted version (FTPS) for data security. Still, it is not considered the best choice for everyday office or business use. The setup and maintenance of such a server involve IT and time costs and never provide data sharing control at the VDR level. Achieving a similar standard requires specialized knowledge and additional systems, making it less suitable for external users.

The main differences between FTP and VDR

Once again, it is worth emphasizing that user comfort and security of confidential data are the most important values ​​that a file-sharing application should have. In the table below we list the main advantages of VDR, which are of key importance to the end user:

AreaFTP ServerVirtual Data Room
Implementation:- IT company involvement
- specialized knowledge required
- project time-consuming
- start-up in 15 min.
- does not require specialized knowledge
- does not require installation
Security:- depends on IT team knowledge
- at the level of online banking, confirmed by certificates (ISO 27001:2013)
- GDPR compliance
- 256-bit EV SSL encryption
- data backup
Features:- file upload and download- file upload and download
- ability to grant permissions to selected users
- "read-only" mode and watermarks on documents
- user activity reports
advanced document search
- data redaction (document anonymization)
Interface:- none; limited to viewing the contents of the shared folder
- requires implementation of additional software
- dedicated for offered features
- intuitive
- speeds up user work

Why VDR is a good alternative to FTP server

VDR can replace the FTP server in every functional and technical aspect. Entrepreneurs can easily and quickly share any type of file both inside and outside the company. The user-friendly interface and high security make VDR a preferable choice for ensuring client comfort and maintaining a professional image.


For a detailed understanding of all the advantages of our system over inflexible FTP solutions, we encourage you to read our article Virtual Data Room: Everything You Need to Know and check our FORDATA VDR offer.

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