What is the average virtual data room price?

Virtual data room solutions come with varying costs, determined by the vendor’s specific features, terms of use, and measures for securing customers’ data.

The latter is particularly important considering the cost of data breaches. According to IBM, in the US, the average cost of a data breach in 2022 was $9.44 million. The average global data breach cost totaled $4.35 million. 

If you’re considering using a virtual data room to secure your data in 2023, what can you expect to pay for your data security, and how do providers structure their costs? Read on to find out.

What is a virtual data room?

A virtual data room (VDR) is an online repository for secure file storage and sharing. Virtual data rooms allow users to share sensitive documents and confidential information with other parties without the risk of breach and are an excellent solution for projects and document management.

Virtual data rooms are typically used for the due diligence process during complex transactions, such as mergers and acquisitions. This is because VDRs allow for secure reviewing, sharing, and disclosure of corporate sensitive data. 

Note: A virtual data room is also often called a deal room, an electronic data room, or an online data room.

Virtual data room pricing explained

Before the invention of the virtual data room solution, sensitive documentation and confidential data was stored in traditional physical data rooms, which charged based on a per-page approach along with expenses such as rental, copying, security measures, and staffing costs. This approach could result in a high overall cost, particularly for large projects.

With the VDR’s expansion, the pricing for document storage and distribution became more cost-effective since virtual data rooms don’t need maintenance like physical data rooms do. However, many virtual data room providers still charge on a per-page basis, and there are many more factors and different approaches that could influence the virtual data room cost.

Let’s get into those details further.

Factors that influence data room price

It’s often puzzling for users why some virtual data room providers cost a few hundred dollars while others cost a few thousand and even ten thousand dollars. 

VDR pricing is influenced by multiple factors. Here are the seven key factors to consider when selecting virtual data room software.

1. Security

The range of security features and measures provided by a VDR provider is a critical factor that affects virtual data room pricing. Generally, the most secure VDR providers are more expensive, but their premium offerings justify the cost.

If you’re looking for software that allows you to store and share sensitive data securely, search for vendors that offer the following features:

• Document security features.
  Advanced VDR providers offer advanced document security features such as dynamic watermarking, redaction, remote shred, and fence view that guarantee high-level security for the data stored in the virtual data room.

• Multi-layered data encryption.
  Expect the platform to offer at least 256-bit encryption at rest and in transit for high-level data security.

• Security certifications and compliance such as SOC 1, 2, 3 and ISO 27001.
  If the data room provider offers various security certifications and compliance, it indicates that the vendor is prepared to protect your confidential data.

• Granular permission settings.
  It is beneficial when the VDR allows admins to customize access permissions on different levels. This allows for secure management of multiple projects. Typically, admins can control who has the ability to view, download, print, download an encrypted file, or fence view specific documents.

• Customer-managed encryption keys.
  When a vendor provides customers with an opportunity to manage encryption keys, it only adds to the overall security level and improves the experience.   

• Real-time data backup.
  It’s important that the VDR of choice ensures the protection of uploaded data against loss or destruction.

2. Functionality

As with other technologies, the level of user-friendliness and all other measures that simplify user experience, can impact the pricing of a virtual data room. 

The more effort a VDR provider puts into making the interface intuitive and user experience smooth for all customers, the higher the cost is likely to be.

Below are several features that offer a top-notch user experience:

• Multi-language interface
• Access across various devices and operating systems (Windows, Android, and iOS)
• Desktop application
• No need for plugins to access the software’s full functionality 
• Knowledgeable, multilingual customer support available across multiple channels 

3. Project size 

Often, virtual data room pricing depends on the data storage capacity and the number of projects, users, and administrators. 

Most virtual data room providers offer a subscription pricing model with a few subscription plans and different aspects included. 

For instance, a basic subscription model will usually include a minimal number of users, admins, and projects, and the storage size will be limited. Naturally, a basic subscription will have the lowest price, and best suited for small- and mid-sized businesses. 

Whereas the most expensive subscription a VDR vendor provides will typically allow unlimited users, unlimited projects, and unlimited storage. Such subscriptions meet the requirements of medium and large businesses for managing multiple deals simultaneously.

4. Data management

The ease of data management typically affects the price, making the VDR more expensive.

For a first-rate user experience and straightforward document management, look for the following features:

• Drag-n-drop and bulk upload
• Advanced search with OCR recognition
• Automated indexing
• Labeling
• Multi-format support

5. Project management

Frequently, customers need more than a plain secure document-sharing service when opting for a virtual data room.

As a result, users utilize virtual data rooms to manage multiple projects, collaborate with the team, and conduct complex financial transactions. 

For smooth project management, look for the following VDR features:

• Bulk-user invitation
• Instant notifications
• In-built Q&A module for live discussions
• Ability to assign tasks
• Groups setup

6. Analytics

The success of any deal or project often depends on how fast you can react to the potential buyer’s or stakeholder’s interest. Fortunately, many analytics tools that VDR vendors provide allow doing that.

Thanks to the analytic services, VDR admins can track every action in a virtual data room and react proactively. 

Below are several analytics features advanced data rooms offer:

• User activity tracking
• Full audit trails
• Group overview reports
• Color-coded reports

7. Software integrations

To ensure a seamless project management and collaboration experience, virtual data room users prefer to avoid installing additional software or switching to other tools.

Fortunately, some VDR providers offer integration options that allow users to work with their preferred tools without leaving the virtual data room environment.

Some of the most popular integrations include:

• Microsoft Office
• Google Drive
• Gmail
• Dropbox
• Salesforce
• Single Sign-On

Virtual data room pricing structures

Virtual data room providers have different pricing structures based on various approaches. Let’s review the most common VDR pricing structures.

Storage size

A virtual data room provider that has a storage-size-based pricing structure charges customers depending on the storage space they require. The more GB they need, the pricier the virtual data room usage will be. 

Often, vendors provide subscription-based pricing that already includes a specified storage space for each plan, with the ability to purchase additional GBs for an extra cost. 

Typically, one GB per month costs around $500.

Per-page

The per-page pricing structure is a rather outdated pricing approach, and most virtual data rooms have given it up. 

However, there are some VDRs that still offer it. The per-page pricing is based on the principle that users pay for each page they upload to a virtual data room. Naturally, this can turn out to be an extremely costly and unpredictable decision. 

The price per page can be as low as $0.40 and reach $1, depending on the vendor. 

Per-user

The per-user pricing model is based on paying for the number of users you want to add to a virtual data room.

Most providers offer subscription plans with a set number of user licenses and charge extra for additional users. The number of administrative users allowed is specified by each particular VDR provider. Naturally, the subscription that allows an unlimited number of users is the priciest but is also a more predictable pricing, and a perfect fit for large businesses with multiple projects and many people involved.

The price per additional user might vary by as much as $100 to $250.

Flat monthly fee

One of the most widespread pricing models is flat rate pricing. It presupposes a monthly payment for a fixed number of users, projects, admins, and storage space. It’s appreciated by most users since it’s more predictable than other structures, and users always know what they pay for.

The price can range from $200 to $1000 per month and depends on the particular vendor. Typically, when purchasing a subscription for a longer period, vendors offer discounted pricing. 

Yearly plans

This pricing model is similar to flat-rate pricing. Users pay for a fixed number of users, admins, projects, and storage capacity. The only difference is that the payment is made annually. This pricing structure best suits large businesses managing long-term projects.

These types of plans typically cost users from $3000 to as much as $100,000 yearly. 

Virtual data room price comparison

Pricing plans offered by modern virtual data room providers differ immensely. The cost depends on many factors — from the variety of features offered to the ease of use. 

Provided that each vendor offers its unique terms of use, it’s recommended to make a thorough  comparison of virtual data room providers, taking into account what functionality, customer support, and pricing they offer.  

For this, clearly define your project’s needs and investigate how each of the available vendors can meet them and for what price. Pay attention to the quality of customer support since it’s crucial to be able to get qualitative assistance when questions arise.

What is the best pricing structure?

The best virtual data room pricing varies for different clients. What is great for a startup with a single project wouldn’t be enough for a large corporation with multiple ongoing projects.

When considering different VDR providers and their pricing approaches, it’s crucial to understand what’s best for your business and how cost-effective each virtual data room solution would be for it. 

Before looking for a provider, think carefully about how many users you need to add to the virtual data room, what file-sharing services are preferable, what advanced features are a must, and how many projects you need to manage. After this, you’ll be ready to compare virtual data room costs available on the market and understand how flexible their plans are to suit your needs.

iDeals virtual data room offers flexible options for all-sized businesses. Every subscription plan includes aspects that your project might require and for a fair price so that you don’t overpay for what you don’t need. 

Check the iDeals plans here.

Can you get a free trial virtual data room?

The short answer is yes. But it’s crucial to understand that data rooms will most likely not be free during the entire duration of your project.

Some VDRs offer a free trial period that allows customers to test the platform without limits to understand whether it can meet their expectations. Typically, a free trial is either 14- or 30-days long. 

However, not all providers can afford it since a free trial doesn’t imply any limitations, and sometimes, clients quit using a platform after utilizing it for free, which is obviously not good for business. 

What’s even more important to remember is that virtual data rooms are about security — this is what most matters to clients. Furthermore, it’s impossible to provide the highest level of security for free.

Nevertheless, some vendors offer free trials without any changes in the quality of security measures. And the trial virtual data room gets absorbed to the “real” paid data room immediately after the company decides to proceed with it. 

This is what iDeals offers during a free trial:

• 30 days of unlimited usage
• Live 1-on-1 demo with an expert
• Data room setup assistance
• Complimentary training
• 24/7 email and phone support
• Price quote based on your requirements