What influences the VDR price setting?
In the modern world, virtual data rooms have completely changed the process of secure file sharing. Instant and constant access from any part of the world and any device, safe data management, the opportunity to save time and money, as well as a range of other advantages became available. Additionally, they help to eliminate a great number of pitfalls and risks. As a result, today a VDR is a safe meeting place for parts involved in the deal. Simplified cooperation is achieved through the provision of complete control during important due diligence. An online data room is an effective tool to promote the whole course of the deal and achieve maximal results with minimal risks and expenses.
Basically, data rooms are used for mergers and acquisitions, but they are getting popular for the venture, private equity and loan syndication. Various industries use data rooms, especially real estate, media, pharmaceutical, biotech, legal, accounting, government, and others.
While the use of virtual data rooms is proven to be beneficial, there is a considerable challenge you may face. Opting for a dependable and trusted provider that offers safe platforms for information storage and exchange may be difficult, but there are several tips that may simplify your choice. First of all, high confidentiality level and safety of uploaded documents are valued by users. People select trusted cloud-based platforms to keep sensitive data and exchange the needed documents without any risks. Another important factor is the cost of the VDR use.
Generally, there are nine key virtual data room pricing features that play an important role in both the quality and cost of a VDR:
- Security. While the safety of valuable documents is appreciated during any deal, it is important to search for a virtual data room provider that guarantees two-factor authentication, watermarks, high level of encryption, audit, and document recovery process.
- User management. This feature presupposes the way users will interact with the uploaded information and includes password protection and permission roles.
- Document management. The ease of data room usage, especially uploading and downloading the documents, the presence of search tools, editing capabilities and version controls are inevitable for both the seller and buyer.
- Client management includes such features, as multiple project permission and providing deal summaries.
- Collaborating peculiarities allow customers to add comments, ask and answer questions and send instant messages to groups.
- Report tracking. A quality virtual data room should provide tracking of users’ activity, specifying the party, time and type of documents accessed.
- Integration. It is useful when the VDR works with the most popular and spread software, especially SalesForce, Microsoft Office and Google Drive.
- Accessibility. Ease-of-use and accessibility are the key factors that come together. A user should search for the provider that enables safe and protected access to the VDR from different browsers and without the need to have special hardware or software. Additionally, some providers also offer mobile access.
- Customizing. Branded login pages, alerts, and watermarks will add to the overall design of the data room and presentability of the company.
As a result, there are multiple points that determine the quality and efficiency of the virtual data room and its provider. The monthly cost will also depend on these features. The vast majority of vendors provide clients with affordable prices that may vary greatly, depending on the selected set of features. Fees are usually charged every month, with specific providers offering discounts for a yearly payment. On average, VDR providers give clients an opportunity to choose the desired payment plan that ranges from basic, pro and up to the enterprise. Additionally, you can contact the customer support team, specify the details of your business and future deal and get recommendations considering the plan that will work best for you.
So, the cost for a virtual data room may differ most commonly depending on the following factors:
- Number of workplaces;
- Number of administrators;
- Number of users;
- Amount of necessary storage;
- Data management tools;
- Level of client support;
- Level of customization;
- Level of document security.
For instance, iDeals virtual data room provider offers a basic plan for small one-time projects that require no customization. Email support, only one project, five administrators, 20 users, and 1GB storage are offered at a minimal cost. At the same time, the provider offers an advanced platform for constant workflows. However, you will have to pay more for an unlimited set of functions. But, you will get compliance, API integrations, multiple projects, unlimited number of users, unlimited storage and similar features.