business management

What Are The Virtual Data Room Pricing Options?

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In general terms, a virtual data room is a secure digital space for storing and sharing sensitive business documents, which is also used for working on projects and closing deals. The feature set of different vendors can differ from each other, just as their pricing models differ. This article will look at how VDR vendor pricing works and how it affects the spaces themselves.

How are prices formed for a virtual data room solution?

Data room vendors can charge for various criteria for their products. Some pricing principles may be more favorable to a company than others, depending on the specifics of your business. This is why you should pay special attention to the payment options that providers offer, because in the long run, using VDRs may be too costly for you. So, there are these VDR pricing policies:

  • Cost per page – In this way, providers charge customers for each page of a downloaded document, which can add up to a tidy sum at the end of a project. This is especially disadvantageous for large companies that work on large deals, and in principle, this option of charging fees is outdated, so it is pretty rare
  • Cost per GB – replacing the previous method came to pricing per gigabyte of storage used. It’s much easier for customers, and costs are much lower
  • Cost per user – this pricing method splits into two cases: charging for the number of administrators that will manage the data room and control all processes and charging for the number of users that are invited
  • Cost per room – Data rooms can be used occasionally or just as a safe storage solution, in which case the company only needs one space (or room), but if it buys VDRs to support multiple transactions or projects, then it needs additional rooms, for which the provider will charge extra fees
  • Monthly rate is one of the most common and convenient data room pricing. A flat rate allows customers to choose how many features (i.e., gigabytes, user seats, rooms, and functions) are reasonable. This also helps in better controlling their costs

How does price affect VDR functionality?

Virtual data rooms are divided into two types:

  • Advanced – which has a vast arsenal of security and control features
  • Budget – which is more functionally limited spaces

When choosing a virtual data room, you should ensure that you will have critical features that will be helpful to you. Under no circumstances should you skimp on them because that way, you won’t be able to create any impact. Providers who use flat rates for their services offer several plans to choose from, each listing a specific set of features. The lower the price, the fewer features the provider gives you. Make sure that you use the version whose features can solve your problems.

Consider the total cost of ownership

When buying a virtual data room, you need to look several steps ahead, not just at the short-term VDR price. What’s in mind? It would help if you thought about what benefits the product will provide for you and where and how you can save money with it. You are given a choice of $100 and $200 VDRs, but the first space is more complicated and cumbersome, so with it, you will close the deal in at least six months. And with the second, the contract will close in no more than 60 days. In that case, the operating costs are much lower in the second option, even if its original price was higher. Read more on data room providers to learn more about their specifics.