LAN (local area networks) provide a safe, secure location to store a variety of files related to a project. One of the many benefits to using a LAN is that only authenticated users of your internal environment are allowed to access the information. This data also remains at the physical location of the company.
Cloud-based solutions, such as Dropbox, are located off-site and are owned and maintained by a third party. Users purchase an agreement to borrow space for storage. You simply give your users the proper credentials (username and password) so that they may gain access to the storage space. This feature makes cloud-based storage a perfect fit for sharing data with those outside of your organization.