The purpose of this update is to align Collaboration Center's layout with Paragon's mobile responsive platform Paragon Connect. No backend changes were made, so setup of clients and automatic notifications is the same.
Some notable changes:
Custom Folders are being relabeled to "Tags"
A cleaner layout on top with a menu that is collapsed, so no tabbed navigation to take up valuable screen real estate.
Here is a video overview produced by ICE, the developers of Paragon, to get you prepared for the changes: