Virtual Data Room is basically an online virtual safe data warehouse used for distributed storage and sharing data. Virtual Data Rooms can be accessed from any place, any time, any device, and with maximum security of data storage, the privacy of data control, and cost-effectiveness.
Before you sign up for Data Room Providers, it is important to understand the services they offer and their plans. Most providers have both SaaS and non-SaaS versions for small, medium, and big organizations. The most common version is the hosted version, where users have to pay for its use, while the other one is the stand-alone version, which is sold as software. Some SaaS applications charge a monthly fee, while some are free, and others come as freeware. It is important to compare these features to know if the provider offers the best benefits at a reasonable price.
Pricing and business model
Data room providers normally offer two pricing approaches: a fixed pricing approach and a variable pricing approach.
The fixed pricing approach is based on the hourly rates charged during a week. However, the non-SaaS version’s pricing may vary depending on the type of licensing structure chosen by businesses. To ensure an appropriate pricing structure, it is important to do your homework by researching the existing market and its offerings to get a clear picture of what competitors are charging for their services.
The second pricing method the provider follow is variable pricing. This pricing includes a commission charged on a per-transaction basis by the provider. This will be higher than the rate charged on fixed pricing since the number of transactions is less. This enables the company to keep the costs down, especially when it comes to training and developing new documents by the company.
There is one thing you need to remember about these types of providers. Unlike traditional hosting companies, virtual data room pricing does not allow a company to run two different accounts. They must maintain only one account, and once it reaches a particular size, providers start charging for additional space. One account will normally be sufficient for medium to large enterprises. For smaller companies, they can opt for shared or virtual server account.
Data Security approach
As far as security is concerned, there are many similarities between these two types of providers. Both of them provide dedicated IP addresses that have dynamic DNS and advanced anti-virus software. Most providers also have firewalls to protect data from unauthorized access. However, the major differences between virtual data room pricing plans are as follows:
A shared server room charges more than virtual data rooms. The reason for this is the larger number of users. This is because the cost per user increases with the number of users. Also, the charges do not depend on the geographical area covered by the network. On the other hand, premium rates are levied on resellers or virtual offices. This is because these rooms are meant for small to medium-sized businesses.
All the mentioned factors are important in the case of securing data. Since these rooms need to secure sensitive information, these services’ prices tend to be on the higher end. It is advisable to use this service only for highly confidential business documents. Also, make sure you select a provider who offers good remote security and monitoring services.