How to Determine Virtual Data Room Prices
In M&A due diligence and other dealmaking virtual data rooms play an essential role. They allow businesses to simplify processes, assist in decision-making and speed up closing of deals. Many companies struggle to determine what a virtual room is because of the wide range of prices charged by different vendors.
The cost of a data room can be influenced by features such as IP-based restrictions and user roles, or a user-managed encryption. The capacity of a room’s data storage can influence pricing. For instance, a higher number of concurrent users will increase storage space costs and will require more bandwidth to handle the demand.
Some providers of virtual data rooms charge per-user, a system that varies between vendors. This pricing model is usually the most affordable option data rooms for projects that have a limited number of administrators. It is important to be aware that some data room providers charge up to $250 per administrator.
Another popular pricing model is based on storage volume. This model offers a predetermined amount of data storage which is typically enough for most small-to-medium projects. If a business requires more storage, they can purchase additional GBs.
A flat-rate pricing model is also a popular. With this option, a business pays an annual fee that is fixed for a certain number of users, projects, admins and storage capacity. This isn’t the most affordable, but it is favored by a lot of users because they don’t want to be shocked by expensive bills.
