A Virtual Data Room or VDR is an ideal choice for businesses of all sizes and across industries. There are various reasons for this.
- VDRs are secure.
- They provide ample storage for all your business data.
- They are accessible from anywhere in the world.
- They simplify due diligence process in M&A.
- VDRs also facilitate IPO.
- They are time-saving and cost-effective.
- They are sustainable and eco-friendly options to store data and manage it.
- They speed up business growth.
Thus VDRs can be extremely useful for all businesses. However the cost of VDR differs from business to business, and from vendor to vendor. There is no fixed cost of a VDR. It hugely depends on factors such as project size and scope.
Which factors determine the cost of a VDR?
The below factors are the major cost-drivers for a VDR.
- Security levels
A VDR that provides more intricate and complex security protocols is likely to be pricier than a VDR that provides basic security features. The encryption levels, two-factor authentication, audit, watermarks etc., are major security features in a VDR. One should also ensure that the VDR supports data recovery.
- Document control
This involves ease of uploading and downloading documents, version controls, document editing abilities etc. These further determine the cost of the VDR service.
- User control
This feature takes into account permission controls and password management.
- Collaboration and teamwork
Certain VDRs have additional and exclusive features like peer-to-peer and Q&A which can drive up the cost of their services if you opt for them. However these features are sought after by many businesses as they facilitate teamwork and quick responses.
Different vendors provide different ways to access the data stored in VDR. You should ideally look for easy-to-access information in the VDR via web browsers and mobile access without the need of additional software or hardware.
A VDR should at least provide a basic report tracking that shows the admin who accessed which document and when.
Certain vendors enable a business to customize features like adding watermarks and logos to documents, branding login pages etc. These features make for additional costs.
Integration with other software like Google Drive and Microsoft Office can further lead to an increase in your VDR costs.
How to get the best price for your VDR service?
When you are looking for VDR services, you will have a list of vendors whose service you are looking to consider for your business.
- Make sure you talk with them thoroughly to make them understand your needs.
- Get a pricing structure from them with all your requirements.
- It could be possible that you like few services of a particular vendor and a couple of services from another vendor. Chances could be that your vendor has all the features you are looking for in your VDR, but has termed them differently. Ask before you take any decisions.
- A minimum of VDR cost for a medium-sized business could vary anywhere between 100$-200$ per month. Consider your budget before deciding on the package.
- Take into account the reputation and experience of the vendor before you take the plunge.
- The VDR service should have instant customer support and worth every penny you pay.