Everything You Need To Know About Virtual Data Room Pricing: A Short Guide
How much should a virtual data room cost in 2022?
There is no strict indication of how much the VDR should cost. Everything is individual and depends on business needs, requirements, and budget. Professionals can find various pricing models, from a flat monthly fee to per-user pricing.
The traditional pricing model charges per-page — a popular pricing strategy when virtual data rooms first appeared on the market.
Nowadays, the most popular online data room pricing model is subscription-based plans, where you receive a variety of features and a set storage capacity for a fixed monthly fee. However, depending on your project and the VDR provider, data rooms can be quite expensive. Some vendors offer VDRs for as little as $500/month, while others may charge thousands.
The prices of the virtual data room software vary from one provider to another. The virtual data room cost highly depends on the complexity of the project, the type of transaction or deal, and the vendor you choose. In the data room market, you can find extremely expensive solutions as well as affordable software.
Usually, virtual data room providers offer three service packages, which can fit different business needs and budgets. These packages differ from each other in the number of features included, storage available, or the number of users. The basic plans usually include limited features and basic technical support. Some providers offer additional features for separate fees, while others include them in advanced monthly plans.
Virtual data room pricing policies usually depend on the following aspects.
The chosen virtual data room provider should offer the guarantee of safety for sensitive documents stored and shared on the platform. The better security practices the vendor uses, the higher price you would be expected to pay for the software.
Number of users
The pricing of the virtual data room solutions also depends on the number of users a company will engage. Depending on how many users are using the secure sharing platform, certain data room providers charge additional fees. Sometimes, you can even get a discount for every new user you invite when the number exceeds a particular number.
Another important factor in virtual data room pricing is the amount of data that the user group usually deals with. Some data room providers have such policies that an additional fee is charged for each added gigabyte of storage.
Depending on how many projects you want to manage in your virtual data room, you can have separate workspaces for each one of them. Prior to committing to any virtual data room solution, you need to determine the number of workspaces that you plan to use during the transaction or on an ongoing basis.
Certain subscription plans offer just a limited set of features and to get the more advanced tool you need to pay additional fees. You may need more functionality to meet the needs of your business. These features usually include customization, Q&A section, software deployment, technical support, etc.
All of these factors show that in order to find the right solution, you must assess your organization’s needs before integrating a VDR into your business.
These solutions can be cost-effective if you have a budget and are aware of additional fees that may appear throughout your data room experience. If you underestimate the factors mentioned above, you risk paying higher costs than expected.
Virtual data room pricing structures
When it comes to the cost structures of VDR providers, for a better understanding of how they work, they can be easily compared with internet subscriptions or cell phone plans. There is a base fee per month that you pay and when you need extra features or tools you need to pay an additional fee.
There are providers that offer unlimited plans, so you can use your data room solution for many different projects. Before commuting to any VDR software, you need to understand the pricing and how you’ll be charged for the service. This will prevent you from paying high unexpected costs and overages.
There are several metrics by which VDR providers typically charge for their service aspects that usually determine the pricing of a VDR.
A number of users
Only a small number of people can utilize VDR software. That's why knowing how big your project is can help you pick a supplier who can handle the required amount of users.
For more users, some merchants impose an additional price. A certain number of data room users are included, and each additional user costs extra.
Some price choices are dependent on cloud storage capacity, which means you'll need to pay for additional gigabytes separately. The cost of data rooms with storage is generally rather high.
Some providers offer unlimited storage, which allows you to manage multiple projects without the worry that you’ll run out of gigabytes.
Although this is not a popular price option, several VDRs still do offer a per-page pricing structure. It's an excellent option for individuals in charge of small projects that don’t require a lot of document storage or advanced document sharing features.
Because there will be additional fees, it will not be ideal for huge projects though, with its overages in case the page limit is exceeded.
This is often a monthly fee that covers a certain number of users, infinite pages, and storage. This choice is particularly cost-effective for your project budget because there are no hidden fees.
Cost per period
You can pay month by month for the data room services, which are given at a defined fee for months, such as 3, 6, or 12 months. These pricing plans are specifically designed for certain complex transactions.
When comparing data room fees, keep in mind that M&A deals sometimes take longer to complete than anticipated.
Levels of customer support and onboarding
The pricier virtual data room providers offer 24/7 customer service as well as extensive onboarding for the new users, making it easier to get started for those, who have no previous experience using such software. You need to make sure that the VDR is able to accommodate both you and your clients.
The number of transactions
Some virtual data room providers let you work on an infinite number of projects, while others charge by the transaction. In a typical year, how many projects do you manage? If there are several, it could be worth considering an unlimited-use option to get the most return on investment.
Security features and practices
Top enterprise-grade data security is currently very valuable for all companies using data storing, document management, and file-sharing services since there are many cybersecurity risks and threats that may be damaging to the company's reputation and resources.
Virtual data room suppliers not only provide advanced security features, but also adhere to stringent international security standards like ISO 27001, SSAE 16, and ISAE 3402.
Access control, user licenses, encryption, adjustable advanced permissions, role-based access levels, fence view, dynamic watermarking, two-factor authentication, and other security features are among the most prevalent in a secure data room.
You can, for example, restrict access to a document so that only those with authorization can see or download it. This allows you to exchange confidential documents without worries.
The number of professional services needed for a project
You need to make sure that the data room provider offers all of the needed functionality for successful deal management. However, adding advanced features to your data room may result in an increase in the overall pricing for the software.
Don’t assume that all virtual data rooms are the same in terms of pricing. As you can see there are many important factors that may impact the virtual data room software pricing. All these crucial elements should be considered when choosing a virtual data room provider to assist your business, whether you’re working in investment banking, private equity, law firms, or advisory firms.
When choosing the right software for managing extensive projects like the due diligence process, and other corporate transactions, start by asking the proper questions.
Virtual data rooms are not all the same price, nor do they all have the same features and capabilities. When determining the cost of a VDR, it's vital to know what features your project requires, what you're receiving for your money, and what your long-term total cost of ownership will be.
Virtual data room pricing comparison
Here is the comparative table that provides information about the pricing of different VDR vendors and their trial periods. Evaluate these options to find the best-suiting solution for your business!
|Data room provider||Pricing||Free trial|
|iDeals||Not provided||30-day trial|
|Intralinks||Not provided||30-day trial by request|
|Donnelley||Not provided||By request|
|Clinked||Starts from €71/month billed annually||10-day trial|
|Citrix||Starts with $3.05 per user, per month||14-day trial|
|DealRoom||Starts from $1250/month billed annually||14-day trial|
|SecureDocs||Starts from $400 / month billed annually||7-day trial|
|Firmex||Not provided||Not available|
|Datasite||Not provided||By request|
|BOX||Not provided||14-day trial|