A virtual data room is one of the most valuable tools for facilitating any transaction that requires extensive due diligence or file sharing. So then, how much does a data room cost?
In this article, we’ll give you some insight into how providers calculate a data room price and help you make the right choice for your company.
Read on to learn more.
What are the financial and other benefits of a VDR over a PDR?
There are many reasons to choose a virtual data room over a physical data room regarding pricing.
|Physical data room (PDR)||Virtual data room (VDR)|
|Physical data rooms need to be located, rented, bought, and maintained with effective security.||A virtual data room provides cloud-based data storage.|
|Additionally, companies are required to keep logs and record all their data to refer to documents when needed.||All your interactions with the documents or users are auto-saved in a data room.|
|Personnel must travel to the data room whenever they need to access the documents.||As such, you do not need to hire staff to run a data room properly, saving on maintenance costs and human resources.|
|As such, companies have to spend extra money to employ additional workers.||You can access a VDR from anywhere globally with only an internet connection — provided you have the necessary permissions.|
As well as pricing, there are numerous other reasons why a virtual data room is superior to a physical space.
For instance, it takes a lot of time to search through a physical data room to find the documents you need. However, a digital VDR offers a simple way of organizing, editing, and referencing documents speedily. Plus, you can do everything at your own pace.
In addition, thanks to a VDR, due diligence in M&A deals can be carried out by all involved at the same time. No longer do companies have to wait their turn to access information in the physical data room. Thus, a VDR improves efficiency and usability while remaining cost-effective.
What influences the pricing of a virtual data room?
Numerous factors can influence the cost of virtual data room services:
- Brand reputation. If you choose a well-known provider with a recognizable name in the VDR industry, you should expect your data room to cost significantly more.
- Technical support. Also, if the VDR offers high-quality tech support, you may have to pay extra as opposed to a provider that does not provide robust support features. After all, these companies will have to employ staff to answer your questions 24/7.
- Customization. A VDR vendor will charge more if they offer wide data room customization functions and white labeling.
- Feature set. A good rule of thumb is: the fewer functions afforded by the provider, the cheaper the service will cost.
What determines the price of virtual data room services?
Generally, a VDR service will incur a monthly fee. However, prices vary by company. A number of factors determine the final price of your VDR plan.
|Volume of project||Some providers charge by the number of pages you need to upload. This could be the most beneficial option if your project is small or you need to upload fewer large files, like multimedia files.|
|Storage volume||Some other providers will charge more based on the size of the documents uploaded. Unlike the first example, this is a good option for companies uploading many text files, as they are small compared to multimedia, videos, graphics, etc. If a provider charges based on data room size, they will usually have a few size option prices available, which means you can upgrade easily, if necessary.|
|Feature set||Additionally, your subscription will also cost more if the VDR provider offers more features than other vendors. You may be able to get less expensive plans if you choose a VDR’s basic version. Some companies have multiple plans that unlock features — but, of course, the price goes up.|
|Monthly fee||Some providers will charge a monthly fee for their services. This fee structure varies but includes everything from the number of users to storage capacity.|
|Duration of the project||If you choose a provider with a flat monthly fee, you may receive a discount if you commit to extending your subscription. Annual or bi-annual packages often are more cost-effective. Besides, for large ongoing projects, VDRs commonly offer unlimited storage and users.|
As such, you should consider how many users will be accessing the data room, how much data you need to store, and the duration of the project when comparing prices.
How much does it cost to maintain a virtual data room?
When choosing a data room service, one of the most important things you need to consider is the level of support you will receive from the vendor. You have to remember that M&A deals do not just happen during work hours; the benefit of a VDR is that users should be able to access information whenever they require it. As such, they should be able to reach the support team without any delays.
While you consider using a less comprehensive file-sharing service to facilitate due diligence (such as DropBox), you have to remember that they do not have the support available if anything goes wrong. As such, if you are serious about providing a stress-free and efficient file-sharing solution for due diligence, you should opt for a VDR provider that offers around-the-clock support.
Of course, some VDR providers offer a better support service than others, so it’s always worth doing your research. However, this service does not come cheap and will usually mean you have to pay a higher price for your VDR as a result.
Typically, a virtual data room can cost anywhere from $99 on up — but this entirely depends on the tariff plan, how long you’ll be using the VDR, and the individual prices of the VDR provider.
Comparing prices of the most popular VDR providers
There are lots of virtual data rooms available to businesses and corporations of all sizes. To help you make the right choice for your company, we have broken down data room pricing for some of the most popular VDR providers.
iDeals offers numerous features, including a well-known Q&A section that facilitates collaboration and communication between parties. It is also renowned for its attention to security in the VDR community.
- Who it is suitable for: Business of any size
- Pricing plan: The vendor offers three options. Prices start at $99 per month:
- Pro (one project, five administrators, unlimited guest users, 10GB of storage)
- Business (unlimited projects, admins, guest users, 250GB of storage)
- Enterprise (tailored to your specific needs with a dedicated project team)
Merrill Datasite is a comprehensive virtual data room for law firms, investment banking, corporate development, and so much more. It provides visual analytics for document activity and lets you customize settings and manage transactions and due diligence accordingly. The platform also offers industry-leading security solutions and satisfies even the most sensitive documents.
- Who it is suitable for: Large businesses and corporations
- Pricing plan: Merrill Datasite does not provide publicly available pricing information for its services. Contact the company for a customized quote.
Intralinks, while a popular name in the VDR vendor business, offers their services for a premium price — despite not offering as many functions as their competitors. That being said, they still provide all the basic data room features for due diligence collaboration. They also include training, 24/7 support, and additional consulting services.
- Who it is suitable for: Large companies
- Pricing plan: Per page ($7,500 for 10,000 pages)
Ansarada is a versatile virtual data room that is suitable for businesses of all sizes, as well as freelancers. They provide governance, risk, and compliance features to keep your documents secure and can be integrated with the likes of Google Drive and DropBox.
- Who it is suitable for: Startups, small and medium-sized businesses
- Pricing plan: Data plans ranging from 250MB to more than 4GB. Prices start at $240 per month.
Box provider does not offer much in the way of complex or innovative features, but they provide a reliable and basic service that suits small transactions and day-to-day operations. This platform is very conveniently priced but may not be suitable or have the relevant capabilities for large-scale M&A transactions.
- Who it is suitable for: Personal use and small businesses
- Pricing plan: The vendor offers four pricing options:
- Business: Organization-wide collaboration, upload files up to 5GB, unlimited storage
- Business Plus: Unlimited external collaborators, upload files up to 15GB, unlimited storage
- Enterprise: Unlimited external collaborator, upload files up to 50GB, unlimited storage
- Enterprise Plus: Custom plan built to your specifications, upload files up to 150GB. Prices start at $5 per month
Firmex is an easy-to-use and functional virtual data room that offers great organization for multiple deals. This solid data room is easy to understand with excellent customer support with comprehensive security and permissions features.
- Who it is suitable for: Businesses of any size
- Pricing plan: Firmex does not provide publicly available pricing information for its services. Contact the company for a customized quote.
So, why do virtual data room costs vary?
In summary, there are numerous reasons why a virtual data room cost can vary. For example, the number of users, files, and project duration can affect virtual data room pricing. Remember it is important to compare prices before you decide, as each VDR comes with its own set of features and perks, some of which will benefit your company better than others.