Virtual data room pricing is a sensitive and somewhat controversial aspect of data room technology. Data rooms are among the most trusted data management solutions as they prevent security breaches and, thus, the costs associated with those breaches. Businesses in Canada and other parts of the world use virtual data rooms for:
- Premium security features
- Ease of use
- Cost-effectiveness, and
- Ability to streamline complex business transactions
Data room pricing plays an important role in determining whether the software is actually cost-effective or not. How much does a data room cost depends on different factors such as data volumes and the features you choose.
Luckily, data room providers nowadays offer flexible pricing options for different types of businesses. For example, Ideals virtual data rooms allow small businesses and enterprises to choose from three different pricing methods. Many vendors also offer discounts on long-term subscriptions.
This article covers all the aspects of virtual data room pricing so that you can make a more informed decision.
What is Included in the Price of a Data Room?
As mentioned above, VDR cost is based on multiple factors, like storage volume. The following features are usually included in standard packages.
Platform access: The client can access the virtual data room to upload, share, and manage documents.
Number of users: The number of licensed users that can access the data room and use its services.
Storage: The amount of storage (in GBs) that comes with the chosen package.
Compliance and certifications: The data room’s compliance with the regulations set by the relevant bodies, like PIPEDA and ISO.
Support services: Basic support service based on the chosen package. It may include email or live chat assistance.
However, the price of data room services can increase due to different hidden cost factors like:
Extra storage charges: Using more storage than the original plan will incur extra charges. It can become expensive if the vendor has fixed prices for different slabs. For example, if a 10GB storage plan costs $100 and a 20GB plan is priced at $200, the customer may have to pay $200 if they exceed the 10GB limit by a small margin.
Additional user licenses: Adding more users than the allowed limit means the customer has to pay for additional user licenses.
Premium features: Buying premium features (like dynamic watermarking or advanced permissions) that are not included in your current plan will cost you more.
Admin/support upgrade fees: Enhanced customer support services like 24/7 support will also be charged.
Integration/API access: Some standard plans may not allow third-party software integration, and availing of this feature will come with an additional cost.
Understanding VDR Pricing Models
Modern-day virtual data room vendors use different pricing models to cater to businesses with unique needs. Here are some of the most commonly used virtual data room pricing models.
1. Per-Page Pricing
The per-page pricing method charges users based on the total number of pages uploaded. For example, if a vendor charges $0.10 per page, 10 pages would cost $1. This method can be quite confusing, as many people think the amount is charged based on the number of documents rather than pages, which is not true.
2. Per-User Pricing
Vendors employing a per-user pricing model charge a recurring fixed fee for a fixed number of licensed users. The vendor also specifies the number of administrative users in the given package. Clients have to pay extra for additional users.
3. Flat Monthly Fee
Flat rate pricing means the vendor will charge a recurring monthly fee for a specific number of users, admins, projects, and the storage limit. Some vendors even allow unlimited data storage and users, based on the package you choose. You can get higher discounts by opting for yearly plans.
4. Storage-Based Pricing
Storage-based pricing involves charging for the total number of GBs consumed by the users in the data room. The vendor either charges for every GB consumed or a fixed number of GBs at a certain price.
5. Hybrid Pricing
Hybrid pricing is a combination of the above-mentioned pricing models based on users’ needs. Some data room service providers may offer low-tier per-user and per-feature plans and top-tier fixed subscriptions.
| Pricing Model | Average Cost | Best Suited For | Potential Drawbacks |
|---|---|---|---|
| Per-page pricing | $0.60/page | Small-sized deals or short-term usage | Very expensive if there are large volumes of data |
| Per-user pricing | $32/user | Useful for teams, startups, and companies with 100 or fewer employees | It can be expensive if the number of users grows |
| Storage-based pricing | $1000/GB | Effective for managing low to medium data volume transactions | Risks of higher charges with the increase in data volumes |
| Flat monthly fee | $240/Month | Highly recommended for medium to large-sized organizations with predictable usage | Less flexibility and a fixed price, whether you fully avail the services or not |
| Hybrid pricing | $350/Month | Useful for small or medium-sized companies with varying needs | Can be complex and harder to predict costs |
Virtual Data Room Price Comparison for Canadian Businesses
Virtual data room providers in Canada provide services to different types of audiences based on their needs. Here is a comparison of some of the top data room providers in Canada.
| VDR Vendor | Notable Features | Best for / Target Audience | Model Type | Pricing Plans |
|---|---|---|---|---|
| iDeals Visit Website |
|
| Monthly subscription |
|
| SS&C Intralinks |
|
| Per-page pricing | On request |
| Firmex |
|
| Monthly subscription | On request |
| Datasite |
|
| Per-page pricing | On request |
| Ansarada |
|
| Monthly subscription | On request |
What Affects the Cost of Your Virtual Data Room?
Good things don’t come cheap, and the same goes for virtual data rooms. Similarly, data room features, security, and other factors significantly affect the virtual data room cost. Here are some of them.
1. Number of users
How many users you want to accommodate in your VDR will directly affect the cost. Data room service providers usually charge a predefined recurring amount for a specific number of users. Some might ask you to pay for every user added to the VDR. In other words, the higher the number of users, the higher the cost.
2. Storage volume
The cost of the data room will increase automatically if your vendor employs the storage-based pricing method. The more storage you consume, the higher the virtual data room cost.
3. Security
Data security is one of the biggest reasons why the corporate world trusts VDR technology. Basic packages often include standard security features. If you want advanced security features like fence-view mode, watermarking, or remote shred, you may have to pay more.
4. Feature set
Just like the security, your desired feature set will increase or decrease the price you pay for your data room. Advanced features like AI-powered analytics, automated workflows, API integration, or branding will increase the cost.
5. Industry-specific compliance requirements
Data room vendors that serve specific industries or regions may charge higher due to compliance requirements. For example, VDR providers in Canada must comply with PIPEDA. Hiring such a vendor means Canadian businesses don’t have to worry about compliance issues, which is an additional benefit that comes with a higher price.
6. Duration of use
How long you need data room services is also a major factor in determining the cost of the VDR. Storage-based or per-page pricing models are better for short-term or one-time use, but there are fewer chances of discounts. Flat monthly pricing is more economical if your organization needs regular service,s and you may get better discounts.
Tips for Potential Customers: Choosing the Right VDR Pricing Option
Doing your homework before doing a virtual data room price comparison will help you determine what exactly you need.
1. Estimate document volume and storage needs
It is important to fully determine how much data you are going to upload to your VDR. If there are hundreds and thousands of files, per-page pricing will be detrimental. Understanding the nature of the data is also important. For example, a 1GB video file may be equal to 5000 pages or more. Accurately estimating the data volume will help you avoid overpaying.
2. Define the number of internal and external users
If you are going to opt for the per-user pricing model, be clear about the number of users in your data room. Additional users may cost you $100-$250 per user. Some vendors allow you to add unlimited users, but the price will be higher, and it is only suitable for large-scale transactions.
3. Identify must-have features
Consider using the necessary features. Going for advanced but irrelevant features will only add cost. For example, internal teams don’t need features like fence-view mode or Q&A modules.
4. Set your budget and desired contract length
A clearly defined budget and contract duration can help you get the best possible outcome. It allows data room vendors to offer better customized packages according to your needs.
5. Shortlist data room vendors and use free trials
Narrow down your search to the most promising options and then ask for free trials or demos. Almost every high-end vendor will allow you to get practical experience before finalizing your purchase.
Common Mistakes to Avoid with VDR Pricing
First-time customers often make the following mistakes when considering the data room pricing.
1. Not considering scaling user needs
Small businesses might choose a cost-effective package based on the current number of users. However, it becomes problematic when the company grows. Therefore, choose a plan that offers flexibility, such as unlimited users or data room storage when needed.
2. Ignoring storage caps or hidden fees
Some data room providers may offer a low upfront price but include strict data storage limits. They may also charge extra if you exceed the maximum data storage limit. Always ask about:
- Data caps
- Overage charges
- Other hidden fees
3. Not comparing enough pricing models
As mentioned earlier, VDR companies offer different pricing structures. It is important to understand each model and compare a few to find the most cost-effective fit. For instance, flat monthly pricing usually offers unlimited users and storage, which allows you to manage multiple deals simultaneously.
4. Assuming the most expensive option is the best
Price does not always guarantee quality. Some affordable providers offer excellent features and customer support. Focus on what you need, not just what costs more or offers unnecessary fancy features.
5. Forgetting to ask about Canadian billing or currency
Canadian businesses or customers must confirm whether billing will be in Canadian dollars or USD. Exchange rates or foreign transaction fees can add up quickly and surprise you during invoicing.
Discounts, Deals & Free Trials in the Canadian Market
Virtual data room providers often offer various incentives to attract new customers. Here are some examples:
- Onehub offers up to a 20% discount for customers who opt for annual billing
- Ideals offers a 30-day free trial and customized packages for customers.
- DealRoom allows you to save $250 by purchasing a Pipeline Only or a Single Project package.
- Clinked offers a 16% yearly discount and a 35% two-year discount.
Value vs. Cost: Is a Virtual Data Room Worth the Investment?
Virtual data room pricing comparison goes beyond the cost of using the services. VDR’s benefits can simply outweigh its cost by a huge margin. Here is how.
1. Prevents data leaks and security breaches
A secure data room protects your sensitive data from internal and external threats. Businesses in Canada can protect sensitive documents from being misused by internal team members as well as external users during the due diligence process or dealmaking. For example, multifactor authorization (a common feature in VDRs) prevents 30% – 50% of attacks targeting login credentials.
2. Speeds up transactions
Virtual data rooms are regularly employed in complex and large-scale dealmaking like M&As. VDRs offer unlimited users and storage and speed up transactions by
- Simplifying data sharing and management
- Offering remote data access
- Streamlining collaboration between a large number of users
- Providing real-time insights related to buyers’ behaviour
3. Supports due diligence and compliance
Data room software provides more control, automation, and security in the due diligence process and post-merger phase. You can control data sharing and workflows and keep track of all data room activities.
Compliance is another reason to use virtual data rooms rather than other traditional cloud storage resources. Data room service providers strictly comply with standard practices set by concerned regulatory authorities like PIPEDA.
Final Takeaways on Virtual Data Room Pricing in Canada
Online data room providers offer different pricing models to suit various business needs. That said,
- Per-page pricing is ideal for small, short-term projects but becomes costly with high data volumes.
- Per-user pricing works well for small teams but can be expensive as user numbers grow.
- Flat monthly fees are best for mid to large-sized businesses with regular usage and predictable storage needs.
- Storage-based pricing suits low to medium data transactions but may lead to high charges if storage increases.
Hybrid pricing combines various models and is good for companies with flexible needs, although it may be harder to manage and predict.
When comparing VDR providers, businesses should first estimate their document volume and storage needs, then define the number of users and essential features. Here are some other important things to consider
- Avoid paying for unnecessary tools or features
- Always set a clear budget and contract duration
- Shortlist vendors offering free trials to test functionality
- Watch out for hidden charges like extra storage fees or user licenses
Also, Canadian businesses should check if billing is in CAD to avoid currency-related costs.
Lastly, don’t assume the most expensive option is the best. Instead, focus on what features you need, compare models carefully, and look for discounts or long-term deals to get the best value.