The service pricing for enterprise software solutions, like virtual data rooms (VDRs), is rising. These days, UK businesses spend over 14% on software, averaging £6,500 per employee — the highest in recent years.
“More than £1 of every £8 spent on software – a record high in SaaS business expenditure.” PR Newswire.
With data room expenses rising, UK businesses face pressure to select virtual data rooms that provide the highest value for money. Understanding how different pricing models work in data rooms can help with that. This time, we deeply investigate the five common data room pricing structures and determine which offers the highest value for customers.
Virtual data room pricing models explained
Product value is the prevailing approach to how most SaaS companies and VDRs, in particular, set prices (39% of SaaS companies, according to OpenView research). This fact allows for greater flexibility in VDR pricing models:
- Per-page pricing
- Usage-based pricing
- Per-user pricing
- Flat-rate pricing
- Tiered pricing
Our observations show that virtual data rooms, including market leaders, are inclined toward per-user and tiered pricing options.
| VDR provider | Pricing model | Virtual data room price |
| Ideals | Tiered | N/A |
| Imprima | Tiered | From €250 (about £210) per month |
| Dealroom | Tiered | From $2,083 (about £1,612) per month |
| DocumentVault | Tiered | N/A |
| Sharefile | Per user | From $16 (about £12.3) per user, monthly |
| Box | Per user | From $13 (about £10) per user, monthly |
| Drooms | Per-user | From €17.90 (about £15) per user, monthly |
| Sterling | Usage-based | ~ £1,500 per month |
| Datasite | Per page | ~ $0.60 (about £0.46) per page |
| Intralinks | Per page | ~ $0.60 (about £0.46) per page |
- Discover what features shape VDR prices and understand how much you should pay for a virtual data room solution on our dedicated virtual data room pricing page.
Per page cost structure
- Price range: ~ $0.45–$0.85 (about £0.35–£0.66) per page; ~ $7,000 (about £5,400) per 10,000 pages
Under the per-page pricing model, customers pay for the number of pages uploaded to virtual data rooms, while access to features is unlimited. This pricing strategy originated from physical data rooms, where physical storage and security measures were expensive and often proportionally scaled. In the digital age, however, the per-page VDR pricing model offers limited value for the following reasons:
- Little justification. With advancements in virtual data room software, large document volumes can be stored without a proportional cost increase. Therefore, the need for per-page pricing is hardly justifiable.
- High cost. Documents can accumulate rapidly in collaborative projects, translating into unreasonably high VDR expenses.
- Unpredictable expenses. Since secure document storage needs normally fluctuate, per-page VDR costs can exceed initial expectations in collaborative projects. Common per-page pitfalls, like missing progressive storage discounts, VDR hibernation costs, and archiving fees, further contribute to the unpredictability of per-page VDR pricing.
Per-page pricing would fit one-time, low-volume, and predictable projects where basic virtual data rooms suffice and new customers can estimate data costs upfront. Even then, other popular SaaS pricing models would be much more cost-effective.
Per-page VDR scenario: Vendor due diligence
Vendor due diligence can exemplify a one-time, low-volume, and relatively predictable project. Let’s assume Company A subscribed to a per-page virtual data room provider to conduct IT vendor due diligence with the following project details:
- Price: £0.46 per page
- Storage: 3 GB (Microsoft Office documents and other lightweight files)
- Users: 32 (30 collaborators and two admins)
- Duration: One month
- Services: Unlimited users and secure data storage
Let’s assume that one GB contains around 3,330 MS Word files (each around 300kB — 10 pages) or 33,333 pages. Now let’s calculate the per-page VDR cost:
- The per-GB cost is £15,333 (33,333 pages at £0.46 per page).
- The total cost is £45,999 (3 GB at £15,333 per GB).
Notably, per-page VDRs often count loose files (like images) as individual pages, which can reduce per-page data costs. For instance, one GB contains around 400 image files (each 2.5 MB on average). In this case, the per-GB cost for image files will be £184 (400 “pages” at £0.46 per page).
This inconsistency, however, hinders collaborative flexibility, forcing organisations to consider which file formats are “the least expensive.” It can be easily avoided with other pricing models.
Usage-based pricing model
- Price range: ~ $1,250 (about £967) per GB, monthly
The usage-based VDR pricing model charges customers based on how extensively they use products and services (document storage is the most common metric). This pricing approach is becoming less popular — over 40% of SaaS companies currently use hybrid models instead of pure pay-as-you-go subscriptions. Let’s explore the benefits and downsides of this pricing model.
Image: usage-based VDR pricing
| Benefits | Downsides |
| ✔️It can be cost-effective for businesses with low or fluctuating data needs. | ❌While typically cheaper than per-page pricing, it is still expensive relative to per-user, flat-rate, and tiered pricing models. |
| ✔️It often offers unlimited users and features, giving organisations collaborative flexibility. | ❌Additional storage costs usually grow disproportionately to the value provided, even with a discounted price. |
| ✔️Customers pay for actual data usage instead of unnecessarily convoluted per-page rates. | ❌It still offers little predictability due to fluctuating data storage capacity in collaborative projects. |
Usage-based virtual data room vendors can benefit mid-sized or large teams that manage low-volume projects. These can be board communications, financial audits, and IPOs, where many stakeholders collaborate on mostly lightweight sensitive documents, like financial statements, board resolutions, and service contracts.
Usage-based VDR scenario: PMI review
A post-merger integration (PMI) review can exemplify a project where multiple departments collaborate on lightweight files. So let’s assume Company B subscribed to a usage-based VDR to conduct a PMI review with the following project details:
- Price: £900 per GB, monthly
- Storage: 4.8 GB
- Users: 220
- Duration: Three months
- Services: Unlimited users, workspaces, advanced security features
Company B processed 1.6 GB monthly (financial statements and operational reports), enabling cross-functional collaboration between 200 collaborative and 20 administrative users. Let’s calculate the total usage-based VDR cost:
- The total usage-based VDR cost is £4,320 (4.8 GB at £900 per GB).
Per-user pricing structure
- Price range: ~ $15–$25 (about £11.6–£19.3) per collaborative user; ~ $100–$250 (about £77.4–£193.5) per administrative user, monthly
The user-based pricing model charges fees based on the number of virtual data room users (individuals with access to the data room). Per-user data rooms don’t typically charge data storage pricing or feature-based pricing, so customers use VDR services with minimal restrictions.
Over 40% of SaaS companies historically charged per active user (OpenView). Many virtual data room solutions, however, have shifted from per-user pricing to tiered subscriptions due to the limitations associated with user licences.
Image: Per-user VDR pricing
| Benefits | Downsides |
| ✔️It separates VDR costs from document volumes, offering data storage flexibility. | ❌Organisations may reduce stakeholder participation for cost-saving purposes, sometimes hindering project success. |
| ✔️It limits overpayment risks in projects with predictable stakeholder involvement. | ❌It can make it difficult for organisations to collaborate on projects where stakeholder involvement may rapidly change. |
| ✔️It can be cost-effective for lean organisations that handle large data volumes. | ❌It’s not suitable for large-scale projects. |
Per-user pricing can be beneficial for small M&A advisory firms, accounting firms, or due diligence firms collecting, processing, and storing large data volumes.
Per-user VDR scenario: Boutique M&A advisor
A boutique M&A advisory firm exemplifies a lean organisation with limited stakeholders involved in data-intensive workflows. So let’s assume Company C, a boutique M&A advisor, subscribed to per-user virtual data room to facilitate a merger with the following project details:
- Price: £15.48 per collaborative and £116 per administrative user, monthly
- Storage: 450 GB
- Users: 55
- Duration: Nine months
- Services: Unlimited cloud storage, workspaces, features
Company C invited 50 collaborative and five administrative users. This advisory firm worked closely with merging entities, transferring over 50 GB monthly, including heavyweight R&D plans and IT documentation. Let’s calculate the total per-user VDR cost:
- The total per-user VDR cost is £12,186 (50 users at £15.48 each and five users at £116 each for nine months).
Flat rate pricing structure
- Price range: ~ $400–$2,000 (about £304–£1,547) monthly
The flat-rate VDR pricing model charges a fixed monthly price for a single set of features. While popular in the past, the pure flat-rate pricing model is getting replaced with hybrid models, like tiered subscriptions. The main reason is that a single set of features at a single price exposes companies to revenue leakage risks and limits the flexibility to meet variable customer demands.
“The inflexibility of a flat-fee model is that it doesn’t adjust based on market conditions, consumer demand, inflation and more,” said Abhishek Rajagopal, Former Forbes Council Member.
Image: Flat-rate VDR pricing
While typically disadvantageous for service providers, flat-rate pricing offers the following benefits and downsides for potential customers.
| Benefits | Downsides |
| ✔️It ensures straightforward and predictable costs decoupled from VDR usage metrics. | ❌It doesn’t occur in established VDR providers with high-value, industry-leading features. |
| ✔️It typically offers unlimited users and features, giving greater strategic flexibility than other pricing models. | ❌With flat-rate fees adjusted to extensive usage scenarios, it carries underutilisation risks. |
| ✔️It relieves customers from tracking VDR usage, helping them focus on actual workflows. | ❌Being “all or nothing”, this pricing model implies that existing customers pay for rarely used features or services inapplicable to specific project needs. |
The flat-rate pricing model can work well for companies with high stakeholder engagement, high data volumes, and extensive collaboration. These projects are large-scale restructurings, frequent mergers and acquisitions, and extensive data transfers.
Flat-rate VDR scenario: Restructuring
Business restructuring can exemplify a high-engagement, data-intensive project. So let’s assume Company D subscribed to a flat-rate VDR to conduct restructuring with the following project details:
- Flat monthly fee: £1,400 per month
- Storage: 480 GB
- Users: 320
- Duration: 12 months
- Services: 500 GB, unlimited users, Q&A workflows, USB archive delivery, secure file storage
Company D managed over 40 GB monthly among 300 collaborative and 20 administrative users, benefiting from smooth Q&A-fueled collaboration. USB archive delivery, however, proved unnecessary for this restructuring, making Company D pay for the unused feature. Let’s calculate the total flat-rate VDR cost:
- The total VDR cost is £16,800 (12 months at £1,400 per month).
Tiered subscription structure
- Price range: ~ $450–$2,500 (about £348–£1,547) monthly
Tiered subscriptions offer fixed pricing levels that correspond to progressively enhanced services and features. This pricing model usually has usage-based and feature-pricing elements. Let’s see how an illustrative tiered VDR pricing works.
| Tier | Service | Monthly fee |
| Basic tier | 20 users 15 GB Basic document management features Basic security features Tech support during business hours | £350 |
| Intermediate tier | Unlimited users 250 GB Advanced secure document-sharing features 24/7 tech support | £750 |
| Premium tier | Unlimited users 1000 GB Full project management capabilities Premium document security features 24/7 premium tech support Dedicated success manager Data room setup assistance | £1,500 |
Image: Progressive VDR pricing tiers
Tiered subscriptions have become the leading pricing model in established security virtual data rooms. This pricing structure helps virtual data room providers cater to broader audiences and variable customer needs in any target market, translating into 3% lower customer churn rates compared to flat-fee VDRs.
| Benefits | Downsides |
| ✔️Pricing tiers cater to variable customer needs and requirements. | ❌Organisations may feel pressure to pay upfront when virtual data room providers offer annual billing discounts. |
| ✔️It is highly predictable since organisations can budget VDR expenses without worrying about fluctuating data volumes or users. | ❌Organisations may be constrained by features offered in particular pricing tiers and under pressure to upgrade their subscription plans. |
| ✔️Premium pricing tiers typically offer increased support levels, service discounts, and significant scaling opportunities without additional costs. |
The tiered pricing model works well for organisations seeking predictability, flexibility, and scalability across various use cases, including M&A, IPO, bankruptcy, investment banking, the due diligence process, and advisory services.
Tiered VDR scenario: Frequent M&A
A frequent M&A acquirer exemplifies an organisation seeking predictability, flexibility, and scalability in VDR solutions while managing multiple deals simultaneously. Let’s assume Company E, a frequent tech acquirer, subscribed to a tiered VDR to conduct three medium-sized acquisitions with the following project details:
- Tier: Premium tier
- Price: £1,500 monthly
- Storage: 600 GB
- Users: 500
- Duration: 12 months
- Services: unlimited storage, unlimited users, projects, features
Company E set up multiple data rooms, invited over 450 collaborators and 50 administrators, and managed 600 GB using advanced features. Now let’s calculate the total premium-tier VDR cost:
- The premium-tier VDR cost is £18,000 (12 months at £1,500 per month).
What is the best VDR pricing model for customers?
A–E VDR scenarios illustrate the most suitable circumstances under respective pricing models. However, to discover the best VDR pricing model across all scenarios, we should compare virtual data room costs under scenarios A–E against all pricing models.
Let’s explore the vendor due diligence scenario where its project details are calculated across all pricing structures with VDR prices taken from respective scenarios:
- Storage: 3 GB
- Users: 32
- Duration: One month
- The per-page virtual data room cost is £45,999 (3 GB at £15,333 per GB).
- The usage-based virtual data room cost is £2,700 (3 GB at £900 per GB).
- The per-user virtual data room cost is £700 (30 users at £15.48 each and two users at £116 each for one month)
- The flat-rate virtual data room cost is £1,400 (one month at £1,400 per month).
- The premium-tier virtual data room cost is £1,500 (one month at £1,500 per month).
Now let’s compare VDR costs across all scenarios (detailed calculations were left out).
| Scenario | Per-page | Usage-based | Per-user | Flat | Premium tier |
| Vendor DD | £45,999 | £2,700 | £700 | £1,400 | £1,500 |
| PMI review | £73,598 | £4,320 | £16,248 | £4,200 | £4,500 |
| M&A advisory | £6.89 million | £405,000 | £12,186 | £12,600 | £13,500 |
| Restructuring | £7.35 million | £432,000 | £83,568 | £16,800 | £18,000 |
| Frequent M&A | £9.13 million | £540,000 | £153,192 | £16,800 | £18,000 |
Flat-rate and tiered VDR pricing models provide the best value for money across all scenarios. However, since the flat-rate pricing model is less adaptable to customer needs and rarely offered in established data rooms, the tiered subscription model is ultimately the best pricing structure for variable customer demands.
Bottom line
- Per-page virtual data room pricing is outdated and offers limited benefits to an average customer. It’s unpredictable and expensive even when substantial discounts are considered.
- Usage-based virtual data room pricing is less expensive than per-page VDR pricing. It works well with low-volume VDR projects.
- The per-user pricing model offers good value for money in lean organisations but becomes very expensive in mid-sized and large-scale business projects.
- The flat rate pricing model offers good value for most usage scenarios. However, established virtual data room providers rarely use flat-rate pricing because it’s less adaptable to customer demands and market conditions.
- Tiered subscriptions work well across all virtual data room usage scenarios. Leading virtual data room providers offer pricing tiers to meet variable customer demands.