What will you find in this article?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:
| Area | FTP Server | Virtual 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.
Conclusion
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.
Did you like the article?
How many heads, so many ideas. That's why each of us contributes to making the content on our blog attractive and valuable for you. Discover a source of knowledge and inspiration for your business with Fordata.
Do you want to exchange knowledge or ask a question?
Write to me : 
#FORDATAteam page opens in new window
Try out the most convenient way of sharing confidential files. Change your FTP server to FORDATA VDR!
GET FREE 14-DAY TRIAL tTest is free for 14 daysYou may also read-
01 . Safe alternative to Dropbox in Due Diligence
Why should I pay for VDR when I can use Dropbox?’ – our clients ask this question sometimes. Yet the answer is not that straight…
26.01.2024
-
02 . Transformations and challenges: European fintech in 2023
The European Fintech ecosystem, once characterized by rapid growth and numerous investments, has undergone significant changes and challenges in 2023. Where does the sector currently stand?
16.11.2023
-
03 . Public-Private Partnership (PPP) in Poland
Public-Private Partnership (PPP) – optimizing budgetary expenses and efficient collaboration between the public and private sectors. Explore the benefits and key elements of joint PPP projects.
09.11.2023
-
04 . Energy industry 2023: Virtual Data Room in M&A transactions
The situation in the energy industry in Poland and Central and Eastern Europe is rapidly changing. What do investments in renewable energy look like?
06.06.2023
-
05 . What documents can you load to data room?
Virtual Data Room is a great alternative to applications like Dropbox and Google Drive, especially when it comes to security…
13.03.2023
-
06 . Venture Capital and Private Equity - the differences between the funds
PE/VC – what are the differences between Private Equity and Venture Capital funds? We point at the main characteristics of both.
15.06.2022
-
07 . Fundraising - how to obtain financing with the VDR tool?
Acquiring financing is a process that requires proper planning based on the current economic conditions, especially in times of crisis…
26.05.2022
-
08 . Who is obliged by DORA and how?
DORA regulation is another step of the EU into operational resilience of financialentities. Who does in concern?
19.05.2022
-
09 . Secure sharing of company documents. A guide for entrepreneurs.
The growing expectations of users regarding the ease and availability of online solutions are one of the main drivers of the digital revolution.
15.04.2022
-
10 . FORDATA system reports - all news in a nutshell
The new version 5.0 of the FORDATA system has been well-received by our users. Working in VDR has become even faster…
14.04.2022
-
11 . How to improve document workflow - 5 rules
Desks full of binders and busy employees with cardboard folders in their hands – these are classic pictures, especially known from…
25.11.2021
-
12 . Company audit - how does it work?
It can be inevitable and often it causes irrational fear. In fact, it is a great opportunity to help your business grow. An audit in a company is always a serious undertaking.
09.02.2021
-
13 . Audit during the pandemic - how has it changed?
The epidemic has had a significant impact on the economy and the functioning of companies, therefore its effects…
27.01.2021
-
14 . FMCG industry - how do companies adapt to the market?
The FMCG industry is trying to make up for the losses lockdowns caused in numerous European countries, while selling of consumer goods…
18.12.2020
-
15 . The scale of restructuring is different in each industry. What about Automotive?
Coronavirus will have long-term effects on the economy. The results of the annual balance sheet may result in some companies not starting restructuring until next year.
22.09.2020
-
16 . Business continuity plan - why your company should have it
The pandemic has made companies aware that although it is impossible to predict all the black scenarios, having a solid business…
30.06.2020
-
17 . Restructuring and the pandemic - accelerated digitalization
Market closure due to the COVID-19 pandemic has intensified the restructuring efforts of many companies. The phenomenon…
20.05.2020
-
18 . Are your email attachments safe?
The modern office cannot function without email. According to the Radicati group, a statistical employee receives 121 messages per…
02.03.2020
-
19 . How to black out text in a PDF document correctly?
Document redaction has many faces – it may turn out that overwriting of the text in our document, which at first glance looks…
27.02.2020
-
20 . Safe cloud and the user - a marriage of convenience
According to a report on cloud computing prepared by McAfee, up to 87% of the companies surveyed believe that…
03.02.2020
-
21 . Virtual Data Room as a green solution
Entrepreneurs increasingly use ecological solutions and try to implement them almost in all areas of the company’s operation…
25.11.2019
-
22 . 5 startup tips from FORDATA
Learn 5 startup ideas that may help your project set off – from first-hand startupers! Read our tips that can help your project get off to a good start.
19.11.2019
-
23 . Fake software aggregators – how to identify them?
Fake software aggregators and Virtual Data Room industry. See how developers try to deceive their customers with fake software comparison websites.
14.08.2019
-
24 . Cloud Data Storage And File Security
The internet has become a common thing in companies’ lives. The enormity of dedicated services, fast transfers and increasing mobility…
31.07.2019
-
25 . How FORDATA Data Room Works?
Are you interested in how the VDR project works in FORDATA? What is our secret of delivering excellent customer service? We have previously…
12.07.2019
-
26 . FORDATA Competitive Advantage – Customer Support
Have we already mentioned that we are available 24/7/365? At FORDATA we are extremely flexible…
12.07.2019
-
27 . Due Diligence stages - selling your business step by step
Every good investment decision is based on sound knowledge about a given company and transaction process. This applies…
25.06.2019
-
28 . Due Diligence - what exactly does it include?
What does Due Diligence investigation consist of? Who performs it? What are its types? Find the answers to these and other questions on FORDATA blog!
18.06.2019
-
29 . Due Diligence audit using Virtual Data Room - security in your company
The process of sharing confidential information can be greatly improved by using Virtual Data Room. Preparing for an audit?
14.01.2019
-
30 . Virtual Data Room: Everything you need to know
What is a virtual data room? What benefits can we achieve by using the system in merger and acquisition transactions?
25.10.2017
-
31 . FORDATA - Outstanding Customer Service!
FORDATA Team is flexible and understands your needs. Exceptional customer support distinguishes us among competitors.
21.09.2017
-
32 . GPG standard - a word on encrypting confidential data
Some users want it 101% safe. If the files we share via cloud services really need that extra layer of protection, encrypting them with a GPG standard might be a good idea.
13.07.2016
-
33 . Vendor Due Diligence - the Value of Negotiation Preparation
Vendor Due Diligence (VDD) is carried out only for the needs of the seller, which means that it takes place earlier than Due Diligence (DD).
09.11.2015
-
34 . VDR in due diligence process
M&As are a permanent element of the economic world. Their goal is to achieve strategic and financial benefits by expanding markets, diversifying products and production processes.
27.05.2013