Is Dropbox becoming a noun? For the sake of this article, let’s say it is.
With over 200 million users, Dropbox (and similar services) is gaining popularity based on its ability to allow users to share files and sync data between devices. These capabilities are very appealing but rely on a public cloud platform that can introduce security and compliance concerns for hedge funds.
Dropbox made headlines last year when it was discovered by security researchers that the service opens some files once they are uploaded. While Dropbox provided an explanation, this can be a serious issue for businesses where employees are using Dropbox to share sensitive company and investment data.
So are your employees using Dropbox? Probably. A study conducted by Gigaom of 1,300 business professionals found that one out of five use public file sharing services, such as Dropbox, with work documents. And, half of those users know their companies have rules against it. This raises the question, how do you give employees access to a valuable tool in a way that meets compliance and security protection obligations?
Hello, Dropbox Alternatives
In the hedge fund space, private cloud providers (like us!) are adding enterprise-class file sync and sharing capabilities into their offerings using technology such as Varonis DatAnywhere. Eze Castle Integration recently rolled out DatAnywhere to our Eze Private Cloud clients.
DatAnywhere aims to strike a balance between security and convenience, which it does well. Employees are able to easily share files and access them across multiple devices while the company is able to set sharing and access control permissions for data. Additional benefits of this Dropbox alternative include:
Users have the same drag-and-drop experience as shared network drive or cloud sync folders
Data is automatically backed up and version controlled
Data is transmitted securely over SSL
All access is monitored and abuse is alerted
No user gets access to data unless they already have permission to access the data
Ability to create and easily share collaboration templates for teams, departments and individuals.
The power of file sharing tools is significant, and users will continue to be drawn towards them even when preventative corporate policies are in place. As a result, hedge funds should consider alternatives to empower their employees while staying compliant.