TJ Moruzzi
Virtual Data Room Prices: How much should a virtual data room cost in 2024?
Let’s breakdown all the ways that virtual data room solutions charge for document management and compare virtual data room pricing models. Data room pricing can vary so let’s look at all the options available for virtual data rooms. That way, you can select the virtual data room software that is right for you!
How do data room providers charge?: Virtual Data Room Price Comparison
Per-page pricing models ($0.35-$0.85 per page per month)
Some virtual data room pricing structures have a per-page pricing model. You can pay anywhere from $0.35 – 0.85 per page, per month. The average M&A deal under $100mil typically requires 20,000 pages to be uploaded to the deal room. If this were the amount of pages required for your deal, you would be incurring a bill anywhere from $7,000 – $17,000/month!
User-Based Pricing Model ($15-$25 per user per month)
If your project involves a defined number of users, considering a per-user pricing model can be advantageous. However, most deals have an undefined number of users. Lawyers, analysts and other stakeholders need to be added and removed from the deal room throughout the deal. These models charge extra for each additional user. This can create unpredictable billing and make it tedious to add new users to the deal room.
Data Storage Pricing ($60-$77 per GB per month)
Some VDR services are priced based on the total data storage used, measured in gigabytes. This model suits businesses that handle a moderate amount of small-sized files. For those with larger secure data storage needs, VDR providers often have set plans with specific storage limits, accommodating larger volumes of data. Again, you could run into some unpredictable bills if you exceed your given storage amount.
Flat-Rate Pricing Model ($300 – $1,500/month) – unlimited storage/users
Projects with dynamic needs and varying scopes can benefit from a monthly flat rate for VDR services. This model is preferred for its predictability and convenience. These data room providers allow you to worry less about data. LockRoom is the only virtual data room provider that offers an unlimited data storage and unlimited users. It’s a strategic pricing approach to prevent unexpected additional charges. LockRoom starts at $500.00/month – see pricing page.
Annual or Monthly ?
Most VDR providers offer both monthly and annual pricing. In some cases, a 20-30% discount is applied if you are willing to pay for an annual subscription vs. a monthly subscription.
Each of these pricing models has its unique advantages, depending on the scale and nature of your project. By carefully considering these options, you can select a VDR pricing structure that aligns with your specific business needs and budgetary constraints, ensuring efficient management of your sensitive data and documents.
What is the best virtual data room pricing structure for virtual data room software?
There isn’t a one-size-fits-all pricing plan suitable for every company, given the variations in business sizes and project complexities.
To cater to diverse needs, VDRs offer a range of flexible pricing plans, making it challenging to determine the good pricing option for projects. Data room features that fit your needs should help you choose the best one.
To assist in decision-making, data rooms providers offer free trial periods, typically lasting a week or two. This allows clients to assess platforms and identify tools and features that align with their requirements.
Additionally, nearly every virtual data room offers a demo or training center, providing potential customers with essential information on leveraging the services and simplifying the decision-making process.
Nevertheless, let’s explore which structure might be most suitable for you and identify key criteria to consider when selecting a data room provider.
What can influence the cost of Virtual Data Rooms?
Several factors influence the pricing of VDRs, reflecting the varying needs and preferences of different users and organizations. Here are key factors that commonly impact VDR pricing:
1. Size and Scope of the Business
The size and complexity of a business often determine the pricing structure. Larger enterprises or those with extensive data requirements may opt for more comprehensive and, consequently, more expensive VDR solutions.
2. Volume of Data and Usage
The amount of data stored and the frequency of usage play a significant role. VDRs often charge based on storage capacity and user activity, with higher volumes and more frequent use generally resulting in higher costs.
3. Security Features
Enhanced security measures, such as advanced encryption, two-factor authentication, and additional security protocols, can influence pricing. VDRs with robust security features may come at a higher cost due to the investment in ensuring data integrity and confidentiality.
4. User Licenses and Access Controls
The number of user licenses and the level of access controls required can impact pricing. Some providers charge on a per-user basis, with additional costs for administrative users or advanced access permissions.
5. Additional Features and Services
Extra features and services, such as customized branding, advanced reporting, or customer support, can contribute to overall costs. Businesses seeking additional functionalities beyond basic document storage may incur higher charges.
6. Duration of Service
The length of the subscription or service agreement can influence pricing. Some VDRs offer discounts for longer commitments, with annual plans often providing cost savings compared to monthly subscriptions.
For example:
- 20 users
- 10GB of storage
- 6 months duration
7. Industry or Use Case
Specific industries or use cases may require specialized features or compliance measures, impacting pricing. VDRs catering to industries with stringent regulatory requirements may have higher costs due to additional compliance features.
8. Customization Requirements
Businesses with specific customization needs, such as a branded interface or tailored workflows, may face additional costs. Customization features can enhance user experience but may come at a premium.
9. Training and Support
Access to training resources and customer support may influence pricing. VDR providers offering extensive training materials, live support, or dedicated account managers may have slightly higher costs compared to more basic support options.
10. Geographic Presence
The geographic location of the business and the data centers used by the provider can impact costs. Providers with a global infrastructure may have different pricing models based on regional considerations.
By considering these factors, businesses can make informed decisions when selecting a data room that aligns with their specific needs and budget constraints.
How to choose your suitable virtual data room? What is the best virtual data room?
Here’s a concise checklist for selecting the right Virtual Data Room (VDR) for your needs:
- Define your requirements.
- Establish your budget.
- Identify your business niche.
- Determine if a free trial is necessary for testing different options.
- Choose a platform that aligns with your preferences: Mac, Windows, Linux, mobile, or web-based VDR.
- Evaluate the amount of data storage you require, as some providers may have limitations.
- Compare prices and other features using our VDR comparison table.
- Select the VDR that best suits your requirements for virtual deals.
Sometimes, the price is just one factor in finding the right VDR. As all VDRs differ, use this checklist to choose a service that aligns with your company’s specific needs. Check out our virtual data room comparison chart to compare data room providers.
