How Much Do Virtual Data Rooms Cost?

How Much Do Virtual Data Rooms Cost?

Cloud services like Google Drive and Dropbox are being used by millions of users around the world to store and send files. People naturally assume that these solutions are secure for their confidential data. And they are correct, for the most part.

But there are more secure solutions called Virtual Data Rooms, which are designed to make sure that high-profile financial transactions are completed without a hitch.

Last year, it was reported that Google Drive already has nearly a billion users. Meanwhile, Dropbox has more than 500 million users. As you can see, they are secure enough for these millions of users to entrust their data on the cloud service.

The question is, are you willing to risk mission-critical data for the potential merger and acquisition on Google Drive and Dropbox?

According to Juniper Research, an estimated $2 trillion was lost on cybercrime activities in 2019. Meanwhile, more than 40% of the attacks victimized small businesses. And the results are disastrous.

Accenture research revealed that despite the threat, only 14% of businesses spent money to make sure they are protected. On average, a small business loses $200,000 for each cyber attack. What is more shocking is that 6 in 10 small companies are forced to close down after an attack.

But Are Not Virtual Data Rooms Expensive? 
 
The term expensive is relative.

When businesses consider a software solution, they should always look at the cost-value equation. You are still going to put in money before you can get it back. That is the factor that separates investment and expense.

They should only be interested in one question: Is the value more than the cost of investment?

In comparison, Google Drive and Dropbox are typically free solutions, although there is a premium option for more storage.

So why choose private data storage over free cloud solutions?

The answer is maximum protection.

Virtual Data Rooms feature:

    •    Two-factor authentication
    •    Compliance with the highest security standards, including ISO certification
    •    Complete recording and monitoring of data
    •    Tracking digital footprint for each file access
    •    Administrator permission for each authorized access

With that said, a virtual data room is not a very expensive solution. Sure, you are going to spend money, but considering the high stakes involved, you are saving money in the long run.

For instance, mergers and acquisitions typically involve millions, and even billions, of dollars. Are you going to risk the transaction because you refuse to spend a few thousand dollars?

Service providers have different pricing packages for the private servers:

    •    Per-page price — They charge between 40 cents up to 90 cents per page. This may be ideal if you only have a few documents to store and send. But the cost can quickly rack up for high-profile mergers.

    •    Fixed fee — You pay a fixed amount per year, depending on the package. The higher the storage capacity, the more expensive it is.

    •    Per-user — You pay an amount for each admin access after you have exceeded the free numbers that come with the package.

As you can see, you have several options when choosing a private due diligence room. But then again, cost should not be the overriding reason for selecting the service provider. Ultimately, you also factor in security, track record, and ease of use, as well.