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Monday, May 23, 2011

Gartner Predicts eDiscovery Market at $1.5 Billion by 2013

Gartner announced their inaugural “magic quadrant” for the E-Discovery (eDiscovery) software market on May 13, 2011 and predicted that this market would reach $1.5 Billion in revenue by 2013.

Having lobbied and pleaded my case with Gartner many times over the course of my career in enterprise software, I am very well aware of the politics and other factors that influence the final results of where a vendor ends up on the “magic quadrant”. And, I believe that Gartner does enable or enforces enough integrity into the process to render the results at least marginally interesting and a factor for enterprise buyers to consider. Having said this, I would have to admit that the inaugural '”magic quadrant” for E-Discovery Software paints a fairly accurate picture of the players in this space (with a few exceptions).

Gartner analysts John Bace and Debra Logan identify five leaders in eDiscovery including; (1) Autonomy; (2) Clearwell Systems; (3) FTI Technology; (4) Guidance Software; and, (5) kCura.

I would assume that Autonomy made the list because of its size of installed based, amount of data managed, revenues, etc. And, although it is not clear if Gartner was aware of the pending acquisition, Autonomy’s purchase of Iron Mountain does provide them with an even wider platform. However, if were a buyer in 2011, I would be cautious about Autonomy. They are very expensive, complex, proprietary, have a reputation for less than stellar service and I have never gotten great reviews from any of their clients. The relationship that they have with their client base reminds me a lot of Oracle from the 1990’s when clients would complain about how bad Oracle was as they were signing the purchase order to buy 50 more enterprise licenses. The point being, Autonomy (just like Oracle) has a corner on the enterprise market for clients that have lots of data and need a big legacy system to manage it all. The trade off is that it will not be leading edge or pretty. But, it will get the job done.

Clearwell is Clearwell and probably deserves to be somewhere in the mix just based on market share. They have undoubtedly done a great job literally creating the Early Case Assessment (ECA) market, the demand within the Early Case Assessment (ECA) market and then stepping up to fulfill that requirement. There are much better ECA tools on the market. But, as Clearwell and many other tools vendors have proven, you don’t have to have the best technology to capture a market. As I have indicated in past posts, Clearwell’s marketing success over the past 3 years will be studied at the Harvard School of Business. Let’s just hope that Symantec can add a little technology to mix and give their platform some legs to go along with their market share.

I don’t really have any comments on FTI Technology beyond the fact that they are a subsidiary of global consulting company with 3,400 employees and a large client base that is using FTI software because it is what the FTI consultants tell them to use. As such, FTI as a software player in its current state will linger within the industry for years to come as their client base struggles to defy the FTI consultants and move to a different more competitive platform. As a side note it has always been interesting to watch FTI balance the use of their internal technology with the wishes of their clients. If they hadn’t paid so much money for what the technology that they have, I would suspect that it would make much more business sense for them to go completely technology agnostic. But then the amortization on the investment that they have made would never get completed.

I also don’t really have any comments on Guidance as they will continue to own a decent share of the computer forensics and associated security software market and therefore will continue to be a member of the magic quadrant in someway shape of form. I will predict that the need for computer forensics software is changing and therefore there is an opportunity for some up and commers to steal market share from Guidance.

The last player on this list is kCura and I have to admit that I like Relativity and I am at least intrigued with their mini app store. However, I have found their channel plan to be highly draconian and their enterprise sales plan to be in conflict with their service provider channel. Further, I would suspect that kCura is a takeover target.

Gartner analysts John Bace and Debra Logan also called out challengers Symantec, EMC, IBM, and Nuix. Given the fact that Clearwell is already a leader, Symantec will move into that quadrant automatically. So, we will be left with EMC, IBM and Nuix. This is a really interesting and diverse group. I am not sure that EMC knows that they want to be when they grow up. IBM, as evidenced by its acquisition of PSS Systems, could obviously buy its way into the lead in the eDiscovery market. However, I believe that they understand that eDiscovery is actually just a subset of the overall Information Management and Information Governance market and therefore have their sights set on something much bigger.
The real interesting player in this list is super speedy Nuix. And although I have a bias as I like the Nuix technology and their management team, I truly believe that we are going to see some big moves from Nuix over the next few months and years.

The other players in the report that I like are CaseCentral and Exterro. CaseCentral is a pioneer in understanding and implementing true multi-tenant technology within the enterprise eDiscovery space and has also been expanding its reach back into the ECA and analytics space with connectors into EnterpriseVault from Symantec. Look for CaseCentral to have a major impact as the market moves to Information Governance and eDiscovery in the cloud. As another side note, it will be interesting to see how Symantec handles legacy relationships such as CaseCentral now that they own Clearwell. Maybe CaseCentral is next.

Exterro is the real wildcard in the bunch. They have absolutely outstanding technology with a suite that can take you from data mapping to legal hold to workflow management Unfortunately, they have a flawed channel strategy and they are somewhat difficult to work with. I predict that they will be acquired in 2011 or early 2012 and become a cornerstone component of a much bigger solution.

The player that Gartner contends they are tracking but was missing from the “magic quadrant” was StoreIQ. As a component player in enterprise eDiscovery and probably more likely in enterprise Information Governance, StoredIQ has some really interesting technology. However, they seem to be having some internal struggles in regards to who they are and how they are going to position and sell their IP. I look for StoredIQ to be acquired in 2011 or early 2012.

The one player that was not even mentioned was Digital Reef. They have a very interesting and fairly comprehensive SaaS-based platform. With new executive management to help with the next phase of their growth, look for Digital Reef to make some noise in the market in 2011 and beyond.







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Thursday, August 27, 2009

Status of Early Case Assessment (ECA)

After about 18 months since the term Early Case Assessment (ECA) emerged, it appears that users are beginning to understand that the key to reducing the overall costs of eDiscovery lies wtih reducing the amount of data that eventually has to be produced and reviewed. Also, it appears that eDiscovery vendors have figured out that the ultimate winners in this space will have a comprehensive seamlessly integrated solution that supports either all or at least a major portion of the EDRM model.

However, it also appears that even though costs have come down significantly, the overall cost of eDiscovery is still way too high.

OVERVIEW OF THE MAINSTREAM TOOL MAREKT

Following is an an update on the ECA offerings from "some" more sell known and mainstream vendors in this space:

ClearWell

According to their website, Rated as a "Strong Positive" (highest possible rating given) in Gartner's 2008 E-Discovery MarketScope Report and voted a Top 5 E-Discovery Software Provider by the 2008 Socha-Gelbmann survey, the Clearwell E-Discovery Platform is the first enterprise-class e-discovery solution that manages all legal matters, regulatory inquiries, and corporate investigations in a single application. Leading companies have chosen Clearwell to process, analyze, review, and produce ESI. As a result, they accelerate early case assessments, cull-down data by up to 90%, increase review throughput, reduce movement of data across multiple tools, and improve the defensibility of their electronic discovery process.

However, word on the street is that it still costs between $450 and $550 per GB for ECA and then additional fees to go to production for review. Given the costs of TIFF and other production processing that may be required could push the overall cost of eDiscovery to well over $1,000 per GB. In addition, ClearWell still requires a farily large investment in hardware and software for "someone" in the channel or the ultimate end-user.

CaseCentral
According to the CaseCentral website, CaseCentral the leader in secure, on-demand eDiscovery software for corporate counsel and law firms looking to simplify and take control of eDiscovery, announced in June 2009 the release of the CaseCentral Early Case Assessment (ECA) offering, which is the industry’s first ECA product to seamlessly integrate with active litigation review and production software. CaseCentral’s integrated, multi-purpose eDiscovery review platform enables clients to start with ECA and extend through analysis, review, production and post-production re-use, facilitating collaborative assessments of new case merits and liabilities, application of first pass review, and real-time transfer to active review if required, all at a price point that shatters the current ECA pricing model.

Pricing for CaseCentral early case assessment starts at $10/GB/month or $120k/TB/year, which is two orders of magnitude less than competitive products, enabling clients to cost-effectively consider much larger data sets for ECA during first pass review. CaseCentral ECA pricing also takes away unpredictability making it easier to budget for ECA activities. Contemporary early case assessment tools charge clients a significant premium for perceived value, often starting at $100k/100GB, which equates to $1,000/GB. ECA can be about small data sets (Gigabytes) or about very large data sets (Terabytes) and current pricing discourages or limits the amount of data that can be considered during early case assessment before ultimately culling down the data set to a smaller amount for active review. This approach forces inside and outside counsel to take risks to limit the data set for ECA and active review.

Anacomp
According to an August 25, 2009 press release, Anacomp®, Inc., a leading provider of litigation support and business process services and solutions, today announced the availability of new early case assessment (ECA) services that offer law firms and corporate general counsel (GC) departments the ability to gain early insight into cases, help determine case strategy, and predict, control and minimize the costs, risks and time of electronic discovery. The new services augment Anacomp’s robust portfolio of eDiscovery services, which leverage CaseLogistix®, Anacomp's flagship litigation review platform, and the company’s proven experience in accelerating litigation processes and reducing costs and risks.


Anacomp's ECA services provide the metrics, methods and technologies to empower litigators to make optimal decisions early pertaining to case strategy and budgets. The services include defensible search methodologies to reduce the volume of electronically stored information (ESI) required for review, and the means to slash indexing times and nearly all reprocessing prior to review. The services offer litigators the ability to bring predictable, reasonable costs to electronic data discovery processes, reduce unnecessary capital expenditures, and eliminate spends typically made under tight deadlines or resource constraints.

OVERVIEW TO OTHER TOOLS VENDORS ENTERING THE ECA MARKET

Following is an update on other tools vendors that have entered the ECA space:
Venio Systems
According to their website, Venio Systems is a cutting edge Electronic Discovery software solution created to save legal, government and corporate industries time and money. Venio FPR™ allows forensic units, attorneys and litigation support teams to analyze data, provide an early case assessment, a total case assessment and a first pass review of any size data set. Unlike other E-Discovery management platforms, Venio FPR™ can export to ALL industry standard litigation support applications while providing extensive reporting options.

Based on a cloud computing model, rumor has it that pricing will be consumption based and very agressive thereby putting downward pressure on the rest of the ECA market.

Trial Solutions
It is also rumored that Trial Solutions may be releasing a cloud based (i.e. SaaS) ECA solution that is seamlessly integrated with ImageDepot, its leading Online Review Tool (ORT). It is further rumored that they may also be planning to offer very aggressive consumption based pricing for ECA.

eMag Solutions
According to an August 2009 press release, eMag Solutions, LLC, an international provider of enterprise content management (ECM) and electronic discovery solutions, announced the company will introduce eMag PreVu 3.0, the latest version of eMag's web-based data management portal to sort, search and filter electronically stored information (ESI) as well as manage early stage workflow. eMag PreVu helps customers manage costs and eliminate extraneous processing steps and shorten the time to complete projects.

The introduction of version 3.0 of the eMag PreVu hosted raw data culling application will occur at next week's annual ILTA conference being held at the Gaylord National Resort & Conference Center near Washington, D.C. August 24-27th.

Early case assessment has become a critical way for organizations and their legal teams to reduce uncertainty around both the costs and management of ESI and e-discovery, while helping them gain a stronger understanding of the nature and scope of the data involved in litigation, data migration, or enterprise content management projects. eMag Solutions has a strong track record of delivering cutting edge tools that help clients achieve great success around data management, and PreVu 3.0 is yet another example of this. eMag PreVu 3.0 allows users to create early stage processing requests to facilitate e-discovery, litigation planning, or ECM to make strategic decisions more timely and effectively.

eMag PreVu 3.0 provides the ability to efficiently cull large data sets prior to loading into an active archive, review tool or other repository, resulting in dramatically reduced review costs. Significant enhancements in PreVu 3.0 include advanced searching options, the ability to group and tag files, increased options for filtering, as well as extensive reporting capabilities.

Another key aspect of PreVu 3.0 is its ability to facilitate cross-border, multi-national collections. Clients are able to utilize the hosted application in conjunction with eMag's UK processing facilities and international on-site services to accommodate international data protection and privacy laws.

earlyCASE
According to a recent press release, Atlanta-based earlyCASE, the leader in advanced early case assessment for Electronically Stored Information (ESI) and eDiscovery, today released filtering and culling capabilities in its market-leading eDiscovery early case assessment software available as Software-as-a-Service “SaaS” from www.earlycase.com. earlyCASE is a SaaS web-based eDiscovery application which uses an on-demand deployment model (runs on your local PC), collects, preserves, analyzes and filters the ESI that your computer can access in-place without the data ever leaving your computer or network.


earlyCASE allows you to quickly and safely collect, organize, understand eDiscovery data, and apply filter / culling rules before it is processed for discovery. It supports Unicode, extracts metadata, generates hash values, detects duplicates, removes known system files and creates a local inventory database of documents and emails. earlyCASE allows users to make informed discovery decisions, easily and quickly cut down the size of data sets through filter and culling rules before going into the meet and confer, discovery processing and document review.

In the past, preserving, collecting, analyzing and filtering electronically stored information had to be handled in separate steps. earlyCASE can safely collect ESI, preserve all metadata, seamlessly analyze and filter the ESI to deliver rapid early case assessment and reduction in the amount of data being processed and reviewed. With the release today of the latest version of earlyCASE, you can create filter rules and see in real time the reduction in size and counts these rules have, then use earlyCASE to quickly separate the filtered documents, files and emails from the collection all without any additional software or costs.

earlyCASE is offered in three versions, a Basic (FREE) version, a Professional version for a small flat rate charge, regardless of the amount of data you analyze, and an enterprise edition. The Basic version offers 40+ high-quality eDiscovery reports, details the expanded sizes and counts of the data, estimates your processing and review budget and provides a long list of detailed as well as summary reports. With the Professional version, duplicate files and emails are identified, Lotus Notes files are processed, Known System Files are identified, EnCase images are processed. earlyCASE Professional also provides the ability to set filtering rules can be applied to reduce the amount of data, a 26(f) report for meet and confer is available to help clients reduce legal risk exposure by offering a necessary view of the legal case information—custodians, context, third parties, and more. earlyCASE provides you the tools and results to best understand, define and memorialize the ESI going into the meet and confer. Duplicate document detection and removal, removal of known system files, elimination of files outside the dates of interest, container processing (zip, rar, arc), Lotus Notes NSF’s, EnCase images and numerous Filtering options are the primary reasons most people use the Professional version of earlyCASE.

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Monday, June 22, 2009

Early Case Assessment Technology Getting Integrated into the eDiscovery Lifecycle

As I have been reporting over the last 18 months, Early Case Assessment (ECA) is the key  technology to reducing the cost of eDiscovery.  And, there have been no shortage of of ECA solutions to hit the market.  However, with ClearWell leading the market, all of the new ECA platforms have been standalone applications that required users to import and export data depending upon what other eDiscovery technologies that they were utilizing.  Obviously, as I have also been contending for over 18 months, a single integrated and affordable eDiscovery platform will revolutionize eDiscovery processing. 

Well, it appears that CaseCentral has answered the call by integrating ECA into their offering and enabling users to now start with ECA and extend through analysis, review, production and post-production re-use, facilitating collaborative assessments of new case merits and liabilities, application of first pass review, and real-time transfer to active review if required, all at a price point that shatters the current ECA pricing model.

Given the size of the eDiscovery market, I am sure that many vendors will follow.  And, given the history “first movers” in the technology industry, there is going to be plenty of room for additional players and several next generations of integrated ECA before the market leaders emerge.  However, CaseCentral may always be able to boast, that they were possibly the first.

The full text of the CaseCenteral press release is as follows:

SAN FRANCISCO, CA -- (Marketwire) -- 06/22/09 -- CaseCentral, the leader in secure, on-demand eDiscovery software for corporate counsel and law firms looking to simplify and take control of eDiscovery, today announced the release of the CaseCentral Early Case Assessment (ECA) offering, which is the industry's first ECA product to seamlessly integrate with active litigation review and production software. CaseCentral's integrated, multi-purpose eDiscovery review platform enables clients to start with ECA and extend through analysis, review, production and post-production re-use, facilitating collaborative assessments of new case merits and liabilities, application of first pass review, and real-time transfer to active review if required, all at a price point that shatters the current ECA pricing model.
"Many of the current Early Case Assessment tools are designed only for the matter at hand. They also frequently require a data export to another tool for active review," said George Socha Jr., Esq., founder of Socha Consulting. "An approach that treats ECA as an integrated part of the overall review and analysis process has the potential to improve both transparency and consistency, decreasing risk and benefiting both inside and outside counsel."

Integrated, Multi-purpose Review Platform

The CaseCentral review platform delivers ECA with close proximity to active review, meaning that no export of data to other tools is required. Clients may rapidly create a new case for active review directly from within the ECA application, increasing consistency and decreasing cost and time. CaseCentral delivers these benefits with centralized data management and enterprise-class security, reducing the risks typically borne by corporations when they transmit proprietary and confidential data outside the firewall to multiple law firms and service providers. The CaseCentral ECA offering is useful to provide first pass review at the time of preservation, post-collection in preparation for 26(f) meet and confer or for performing scenario testing and risk forecasting on large data sets, benefiting both inside and outside counsel.

Designed for Collaboration

The CaseCentral review platform uniquely supports the virtual teams that are typical in eDiscovery review -- corporate legal potentially located in multiple states and time zones, law firms doing review work outside the corporate firewall and often outside review houses or LPOs performing critical review from locations across the country and even from other countries. This collaborative environment provides critical transparency of the review process to both inside and outside counsel and speeds the time to resolution.

Enables Use of Context from Previous Matters

Existing early case assessment products are usually designed only for the matter at hand, not to take advantage of previous matters. The CaseCentral review platform allows clients to manage multiple matters and enables re-use of work product or context from prior matters, including searches, production history and coding history, to aid in either Early Case Assessment or active eDiscovery review activities, increasing consistency and decreasing risk, cost and time.

Radical New ECA Pricing Model

Pricing for CaseCentral early case assessment starts at $10/GB/month or $120k/TB/year, which is two orders of magnitude less than competitive products, enabling clients to cost-effectively consider much larger data sets for ECA during first pass review. CaseCentral ECA pricing also takes away unpredictability making it easier to budget for ECA activities. Contemporary early case assessment tools charge clients a significant premium for perceived value, often starting at $100k/100GB, which equates to $1,000/GB. ECA can be about small data sets (Gigabytes) or about very large data sets (Terabytes) and current pricing discourages or limits the amount of data that can be considered during early case assessment before ultimately culling down the data set to a smaller amount for active review. This approach forces inside and outside counsel to take risks to limit the data set for ECA and active review.

"CaseCentral has taken the visionary step of treating Early Case Assessment (ECA) like just another phase of the review process," said Steve d'Alencon, chief marketing officer, CaseCentral. "This approach, coupled with CaseCentral's radical new ECA pricing model, moves the value equation for clients away from tactical, independent tools and towards an integrated, multi-purpose eDiscovery review platform."

CaseCentral ECA functionality allows attorneys to:

-- Consider strategies, perform analysis, evaluate liability and eliminate irrelevant data.
--  Analyze any given data set to cull down to only relevant and
    responsive data before moving into active review.
--  Collaborate securely with inside and outside counsel without
    compromising any active litigation reviews.
--  Ability to collect preservation metadata related to the legal hold
    (i.e. case name, sources, file paths, time and date of collection,
    applicable retention policy, etc.)
--  Employ file extension filtering and NSRL database filtering (de-NIST)
--  Utilize keyword or conceptual term search filters and conceptual
    classification across terabytes of data with 100% fully indexed metadata,
    full email thread support, duplicate management and near-duplicate
    identification.
--  Based on active attorney designations, re-evaluate and modify/remove
    keywords, custodians and concepts to cull irrelevant documents during
    review.  (i.e.: keywords with low responsive rates may be dropped from
    collections.)
--  Create content profiles to quickly locate potentially privileged and
    confidential content, as well as segregating non-relevant documents.
    (i.e.: create a 'smart folder' for spam content.)
--  Report metrics regarding data volumes, data types, custodians and
    collection metadata.
--  Classify documents by potential treatment (aka: potentially
    privileged) and move them directly into active review.

About CaseCentral

Founded in 1994, CaseCentral is the leader in secure, on-demand eDiscovery software for corporations and law firms to simplify and take control of eDiscovery. CaseCentral enables repeatable, defensible and measurable business processes that significantly reduce eDiscovery risk, cost and time. The CaseCentral eDiscovery review platform integrates early case assessment, processing, analysis, review and production capabilities, enabling customers to succeed with a single matter and seamlessly migrate to multi-matter, multi-party, multi-repository support within the same software platform. CaseCentral pioneered the use of process analytics, providing real-time measurement of review rates, quality rates and costs per document -- by matter, firm or user. CaseCentral has served more than 31 of the Fortune 100 and more than 82 of the AmLaw 100. For more information, call 1.800.714.2727 or visit http://www.casecentral.com/. Read 'Case in Point' cartoons, the lighter side of eDiscovery, at: http://www.casecentral.com/case-in-point/.


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Wednesday, June 10, 2009

eDiscovery Solutions Group Announces Comprehensive Support Services for Equivio Near-Duplicates and Email Threads Technology

I am pleased to announce that our international consortium of eDiscovery Providers has formed a partnership with Equivio. I met the management team from Equivio several years ago and have been very impressed with their technology and success in the US markets.

With our commitment to support a variety of review platforms such as Concordance, Summation, Ringtail, iConect, Relativity, CaseCentral and CaseLogistix coupled with our experience and expertise in de-duping, near de-duping and email thread management, we expect Equivio and its technology to be a great addition to our consortium.

The Full Text of the Press Release is as follows:

Eagle, Idaho (PRWEB) June 9, 2009 – eDiscovery Solutions Group announced today that it has entered in to a partnership with Equivio to provide comprehensive consulting, training and systems integration support for Equivio’s near-duplicates and email threads technology.

Equivio’s grouping, analysis and management of near-duplicates and email threads enable litigation knowledge workers to easily identify and skip redundant data and focus exclusively on the unique information in each document. Equivio reduces the risk of missing key information, ensures a consistent approach across the entire data set, enhances review productivity and reduces the amount of time required for litigation knowledge workers to meet tight deadlines.

Under the terms of the partnership, eDiscovery Solutions Group professionals and certified consortium members will be available to assist Equivio clients with comprehensive eDiscovery consulting, document review best practices and end-user training for leading industry document management platforms such as Concordance, Summation, Ringtail, iConect, Relativity, CaseCentral and CaseLogistix. In addition, eDiscovery Solutions Group technologists and certified consortium members will be available to assist software vendors with integrating Equivio into commercial product lines and end users with integrating Equivio into internal legacy systems.

eDiscovery Solutions Group will also begin selling Equivio as a component of its eDiscovery services, consulting and technology offering designed to support the entire eDiscovery lifecycle for the legal departments of corporations, the IT departments of corporations that need to support eDiscovery requirements, and litigation-centric law firms.
“In today's complex corporate reality of managing ever increasing volumes of Electronically Stored Information (ESI) and changing eDiscovery demands, the cost of document review is the single most expensive component of the eDiscovery lifecycle,” states Charles Skamser, Founder, President and CEO of eDiscovery Solutions Group. “We believe that Equivio near–duplicates and email threads technology can have a profound effect on increasing the productivity of litigation knowledge workers, reducing the amount of ESI that has to be reviewed downstream and thereby reducing the overall cost of the entire eDiscovery lifecycle,” continues Mr. Skamser.

eDiscovery Solutions Group offers a broad array of eDiscovery consulting, services and technology along with project management to support the entire eDiscovery lifecycle. Following the eDiscovery processing parameters of the Electronic Discovery Reference Model (EDRM), eDiscovery Solutions Group has developed an eDiscovery best practices framework that includes consulting, collection, analysis, processing, production, review and presentation.

Within this framework, the eDiscovery Solutions Group can deliver data retention policy, development, data archiving, eSecurity, eCompliance, eDiscovery readiness, strategic planning, implementation support, paper and ESI collection, investigations, expert testimony, data recovery, computer forensics, early case assessment, data analysis, data redundancy management, conceptual search, de-dupe, near de-dupe, scanning, copying, coding, language translation, EDD, TIFF conversion, hosting, on-site, on-shore and off-shore review, legal process outsourcing (LPO), courtroom graphics and presentations, tool training, systems integration and custom solutions.
“As our installed base continues to grow, we are very pleased to have eDiscovery Solutions Group as a partner to assist with providing review consulting, training end-users and providing systems integration for our clients,“ stated Amir Milo, CEO of Equivio. “eDiscovery Solutions Group staff of experienced eDiscovery professionals, along with their network of consortium members, will be a welcome addition to the Equivio community.”

About Equivio
Equivio enables the management of data redundancy in content-centric business processes. Equivio's technology zooms in on unique data, allowing you to read less, think more, win big™. With products for grouping near-duplicates, capturing email threads and comparing documents, Equivio powers a broad range of business applications, including e-discovery, records management, email archiving, data retention and intelligence. To learn more about winning with Equivio, email info@equivio.com or visit http://www.equivio.com/.

About eDiscovery Solutions Group
eDiscovery Solutions Group is an international consortium of leading independent eDiscovery consultants, eDiscovery consulting firms, regional litigation service providers and best-in-class eDiscovery technology companies that have come together to provide all of the services, consulting and technology necessary to support the entire eDiscovery lifecycle for the legal departments of corporations, the IT departments of corporations that need to support eDiscovery requirements and litigation centric law firms. For more information about eDiscovery Solutions Group, please visit: http://www.ediscoverysolutionsgroup.com/.

eDiscovery Solutions Group Business Networking Links
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Contact:
Director of Marketing
eDiscovery Solutions Group
PO Box 2299
Eagle, Idaho 83616
Main: 208-387-7883
email: sales@ediscoverysolutionsgroup.com
Web: http://www.ediscoverysolutionsgroup.com/

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Tuesday, September 2, 2008

Pay-Per-Use Litigation Software Pricing Model in 2008 is Not a Game Changer, it is a Requirement

I have been following with some amount of amazement, the litigation industry buzz around Guidance Software's August 20, 2008 announcement that they are going to begin to offer a pay-per-use pricing option for their EnCase® eDiscovery platform. Don't get me wrong, I think that it is a great idea. However, given the fact that pay-per-use pricing is now a standard pricing options in the rest of software world outside of litigation technology and has already begun to become mainstream in the litigation market as well, I am hard pressed to call it a "game changing" move.

For the past several years, litigation technology vendors with Software-as-as-Service (SaaS) or Citrix based onDemand platforms have been offering a standard pay-for-use pricing model. Examples include Online Review Tool (ORT) technology providers such as Lexbe, ImageDepot™, CaseCentral, CaseLogistix, and many other vendors In addition, many of the new SaaS based email archiving technologies such as Google, Autonomy, MessageOne, LiveOffice and Fortiva base a major portin of their value proposition on the fact that they offer pay-for-use pricing.

SaaS is the future of software delivery across the board and most of the forward looking technology vendors in the litigation services market realized that years ago. Therefore, vendors with legacy technology claiming to be changing the game with a pay-per-user pricing model are actually behind the curve and not leading the pack. The real leaders are the technology vendors that have already embraced the pay-per-use pricing model and are designing and developing true multi-tenant SaaS applications that will dramatically reduce the overall cost of eDiscovery.

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Thursday, August 28, 2008

Oracle vs. SQLServer Argument Hits eDiscovery Market

Having spent the last 20 years in the enterprise class software market I am very familiar with the age old argument about whether Oracle's DBMS or Microsoft's SQLServer is better. The Oracle bigots will tell you that SQLServer is slow, doesn't scale and just wasn't architected for true enterprise class use. SQLServer Biggots will tell you that Oracle is way too expensive. I will get in to some of the specifics later in this post. However, first I wanted to point out that the Oracle vs. SQLServer argument has now hit the eDiscovery market with CaseCentral's announcement that they have Migrated their On-Demand eDiscovery Platform to Oracle® Real Application Clusters.

Given the fact that Tom Thimot, CaseCentral President and CEO served as the vice president of central U.S. sales at Oracle, where his team grew license revenues from $50 million to more than $250 million in a two-year period and was also a key leader in the worldwide Oracle applications vertical organization that grew revenues by more than $100 million, it is no big surprise that he is an Oracle Biggot.

The Full Text of the Press Release is as follows:
REDWOOD SHORES, Calif., Aug. 20 /PRNewswire-FirstCall/ --

-- CaseCentral, the leading secure SaaS platform for corporations looking to take control of eDiscovery, has migrated its Software-as-a-Service (SaaS) platform to Oracle Database and Oracle Real Application Clusters to deliver better performance, scalability and availability, Oracle announced today.
-- CaseCentral's platform allows corporations to apply disciplined business process to litigation and regulatory matters, reducing risk and business disruption, boosting productivity, and controlling costs. CaseCentral has delivered its proven, SaaS platform to over 1,100 customers and more than 7,250 registered users.
-- CaseCentral actively manages several hundred terabytes of evidence -- 95 percent of which is unstructured data such as emails, office documents, and images -- and has hosted over 25,000 individual litigation matters.
-- San Francisco-based CaseCentral initially deployed its clustered database environment in 2007. Its purpose-built Java-based platform is deployed on a multi-node cluster of HP BladeSystem servers running Linux.
-- CaseCentral utilizes Oracle Enterprise Manager to help provide the monitoring and management necessary to meet the mission-critical needs of their clients. CaseCentral will migrate customers currently supported by Microsoft SQL Server to the clustered Oracle Database environment.

Supporting Quote
"CaseCentral offers a highly scalable, on demand software platform that allows companies to own the eDiscovery process and their law firms to own the execution," said Ted Sergott, Chief Technology Officer, CaseCentral. "At a moment's notice, a new or existing client can send us millions of documents and terabytes of data to support an eDiscovery matter and thanks to our architecture, we are fully prepared to accommodate that volume of mission-critical data. Running on Oracle Database and Oracle Real Application Clusters, CaseCentral offers customers a scaleable, secure and available platform to meet their eDiscovery needs."

Supporting Resources
About Oracle Database: http://www.oracle.com/database
About Oracle Real Application Clusters: http://www.oracle.com/clusters
About Oracle Enterprise Manager: http://www.oracle.com/enterprise_manager/index.html
To download free, evaluation versions of Oracle software, go to: http://www.oracle.com/technology/software/index.html

About CaseCentral
CaseCentral is the leader in on-demand eDiscovery software for corporations looking to take control of eDiscovery. CaseCentral enables companies to efficiently and defensibly respond to today's legal and compliance challenges, consistently, accurately and faster, while delivering overall savings of 30-60 percent and increasing earnings per share (EPS) by up to 1.1 percent. The company's on-demand eDiscovery software platform, with its secure, multi-party architecture and configurable litigation workflow engine, includes best-practice solution templates that enable companies to be operational within hours. CaseCentral is the first to provide eDiscovery business intelligence dashboards giving customers real-time insight into review rates, quality rates and costs per document by case, firm or user. CaseCentral is used by more than 25 of the Fortune 100 and 81 of the AmLaw 100. Founded in 1994, CaseCentral is consistently chosen to handle many of the most complex and highly visible litigation projects in the nation. For more information, call 1.800.714.2727 or visit http://www.casecentral.com/.

About Oracle
Oracle (ORCL) is the world's largest enterprise software company. For more information about Oracle, please visit our Web site at http://www.oracle.com/.

Oracle vs. SQLServer
According to a recent whitepaper available on the Microsoft site title "Leaping Forward: SQL Server 2008 Compared to Oracle Database 11g", Microsoft SQL Server has steadily gained ground on other database systems and now surpasses the competition in terms of performance, scalability, security, developer productivity, business intelligence (BI), and compatibility with the 2007 Microsoft Office System. It achieves this at a considerably lower cost than does Oracle Database 11g.

So, Microsoft contends that Microsoft® SQL Server® 2008 outperforms Oracle in the areas that matter to your business. The following summarizes some of the mission-critical areas in which SQL Server 2008 excels:

Performance and Scalability: SQL Server scales to some of the world’s largest workloads, evidenced by strong industry standard benchmark results. Customers such as Unilever, Citi, Barclays Capital, and Mediterranean Shipping Company support their most mission-critical applications on SQL Server. Customers running SQL Server 2008, including large ISVs such as Siemens and RedPrairie, report excellent experiences with the latest scalability enhancements. SQL Server is recognized as Best Seller and Top Growth Best Seller by CRN Magazine.

Security: The National Vulnerability Database (NIST) reports over 330 critical security vulnerabilities in Oracle database products over the last four years. During that same period, SQL Server 2005 experienced ZERO vulnerabilities. This result comes from secure engineering processes as part of the Trustworthy Computing Initiative, comprehensive security features, and a robust Microsoft Update infrastructure. This winning combination reduces both security risks and patching downtime for customers. According to one expert, Oracle is five years behind Microsoft in patch management. Computerworld reports that two-thirds of Oracle DBAs do not apply security patches.

Developer Productivity: SQL Server works with Microsoft Visual Studio® to help provide an integrated development experience, allowing developers to work in one environment across the client, mid-tier, and data-tier. SQL Server 2008 takes a step further with new development features. In contrast, Oracle’s array of tools and SDKs, assembled via acquisition, require developers to learn and work across numerous interfaces. In fact, IDC reports that Microsoft is the number one application technology platform of choice.

Business Intelligence: SQL Server is part of the Microsoft integrated Business Intelligence platform, which spans data warehousing, analytics and reporting, score carding, planning, and budgeting. SQL Server is in the Leader’s quadrant in both Gartner’s Magic Quadrant for BI Platforms and Magic Quadrant for Data Warehousing. SQL Server 2008 introduces more innovation with new data warehousing and business intelligence features. According to Oracle’s latest price list, the company currently charges up to an additional 800% or more on top of their base database fees for similar functionalities.

Microsoft Office System Integration: SQL Server helps customers gain better business insight and make faster decisions through the product's tight integration with the familiar Microsoft Office System user interface. For example, add-ins such as Data Mining for Excel uses both SQL Server and Microsoft Office to provide insight into customer data. IDC recognizes Microsoft as the fastest growing BI tool vendor. Oracle has Microsoft Office Plug In, which includes subset of the functionalities that SQL Server provides, but charges an additional $30,000 per processor.

Total Cost of Ownership: SQL Server has a simple tiered SKU licensing model. Oracle, on the other hand, has a complex array of options and add-ins that are required to develop, deploy, and manage most large-scale applications. The SQL Server integrated development environment and easy-to-use development tools lead to improved Time to Solution and Time to Value for applications and business insight. SQL Server is highly successful in the areas of self-tuning and automated administration, resulting in a much simpler deployment and management profile than Oracle Database 11g. SQL Server is designed to work seamlessly with the rest of the Microsoft software stack, which can help provide smoother development and deployment experience and higher performance than Oracle.

Summary
As I started this post, I grew up in the enterprise software market and therefore learned to tow the Oracle line and bash SQLServer as a nice little departmental database that would never have what it takes to play in the big leagues. However, I believe that Microsoft has come a long way and now that I am "playing" in the legal market, I would recommend that any technologies sitting on the SQLServer platform will have to be considered just as strong as the technologies sitting on Oracle.

And, I hope that someone out there in the litigation market challenges this position so that we can rekindle some of the debate that was so much fun for so many years in the general enterprise markets. And, it is arguments / debates such as these that will help to usher the litigation market into the world of leading edge technology.

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Wednesday, July 2, 2008

eDiscovery Single Source Solutions

Over the past twelve (12) months months I have spent what seems like eighteen (18) months meetings with litigators from law firms, General Counsels from the Fortune 5000, owners and operators of litigation services providers, visionaries from the litigation technology vendors and investors that are either in the litigation technology services space or interested in taking a position in the space.

And although the opinions vary widely regarding the most important issues that the industry faces and the direction that the industry will take, the one common theme that has bubbled to the top in every discussion is the debate over "single source" solutions as opposed to "best of breed" solutions.

Having spent twenty five (25) years in the enterprise class software market selling multi-million dollar solutions to the Fortune 5000, this is a very familiar debate and therefore I recognize and understand the issues on both sides of the argument.

The Users Perspective and General Observations
From the users perspective in any market, they want solutions that addresses their requirements for a fair price. At this very high level of requirement, the ultimate solution could be either a "best of breed" solution or a "single source" solution. However, when users start to investigate the details, the differences begin to become very real.

Working with "best of breed" solutions requires users to spend lots of resources building customer solutions that ties them into old technology. In addition, as time goes on and market requirements change, these solutions require expensive maintenance and in some cases don't enable users to keep pace with demand.

Working with any of the newer solutions requires patience and reliance upon either poorly integrated older technologies or unproven leading edge technolgy. So, in both cases their are pros and cons, sacrefices and trade offs that will have to be made.

In the end, users in the eDiscovery market will pay for repeatable and stable results. In some cases this will come from "best of breed" solutions and in some cases this will come from "single source" solutions. It just depends upon what the user is willing to sacrifice for the required outcome.

The Vendors Perspective and General Observations
Vendors in this debate usually fall into one of two categories. Those vendors that can provide single source solution and those that cannot.

The vendors that can provide or are attempting to provide a "single source" solution will be tauting the financial and operating benefits of only having to deal with one vendor from both a procurement and service standpoint. Historically, the first vendors to offer the "single source" solution in any market, started with a strong technical foundation in that market with a leading product and then acquire and integrate the peripheral technologies or solutions required to complete a "single source" solution.

The benefits of this initial entrants into the "single source" fray is that they do have a solution (no matter how clumsy), they will normally have the financial resources to make it work (i.e. lots of engineers and field service personnel) and they usually have referenceable clients.

The shortcomings with these initial "single source" solutions are that they are usually built on older technology (i.e. client/server or worse), the integrations are not particularly well done, the are usually not easy to use and they are expensive to maintain (i.e. and therefore expensive for the users). Common traits will be the requirement to store data in multiple disparate databases, the requirement for lots of manual operations and user interfaces that are trying to appear to be something that they are not (i.e. Citrix based emulations vs. true SaaS based HTML GUIs).

Examples of this group in eDiscovery would be vendors such as FTI and Autonomy that are currently trying to assemble a "single source" solution through MA activities.


Shortly after the emergence of this first vendor group, true "single source" solutions will begin to appear that were designed and built specifically to provide a truly seamless single source solutions. These vendors are normally start ups relying on very leading edge technology (e.g. SaaS), possibly venture backed (i.e. not as many in today's economy), have immature sales organizations and very few if any real referenceable clients. They are the prototypical study in Geoffrey Moore's Crossing the Chasm.

The benefits of this second group is that they usually have very elegant solutions, they are normally much less expensive then the first vendor group, they are willing to provide lots of perks for using their technology and users will usually be dealing with the founders and developers of the technology.

The shortcomings of this second group is that they are offering new and unproven technology, they may not have the capital to sustain themselves (i.e. unless they have venture funding), they may in fact not have the best solution in every category and the technology may go through some growing pains as it matures under the rigors of the real world.

An example of this type of vendor in the eDiscovery market would be CaseCentral.

The vendors that cannot provide a single source solution are easy to spot as they will use terms such as "pure play" and "best of breed" and discuss the ramifications of not having the very best solution in any of the required sub components. These vendors are normally very large and established and are usually very good at one specific component of the entire requirement. This vendor group will normally also have a very large, active and expensive custom integration consulting team that will be able to integrate their technology with just about anything that you are willing to pay for.

The benefits of working with these vendors is that users will in fact get the best, most widely tested solution for whatever component that vendor provides. And, for the larger Fortune 100 clients, they may in fact be able to assist in assembling a true "best of breed" custom system.

Other Opinions
As evidence that this issue is becoming "ripe", we are starting to see a variety of opinions appear. A good example is a recent post by Barry Murphy on his "Blogging at the intersection of archiving and eDiscovery" Blog titled, "Best-of-Breed or All-in-One Solution for eDiscovery? ". Barry isn't completely sold on the concept of "single source" solutions. However, he seems to be warming up to the idea.

Summary
In summary, I have purposely not come to any conclusion regarding this debate in eDiscovery because I want to continue to study the market. However, in case it wasn't obvious, based upon my experiences in the enterprise class software markets, I am a big proponent of "single source" solutions. I understand the inherent limitations and risks for users but also understand the tremendous rewards.

So, send me you comments and opinions and stay tuned for my next update on this topic.

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Wednesday, March 26, 2008

Update on SaaS in the Litigation Market

Software-as-a-Service (SaaS) adoption rates are finally beginning to accelerate in the overall information technology market. Therefore, I thought that is was time for quick update on how SaaS is doing in the litigation market. Is the "jury" still out or are law firms and corporate legal departments following the rest of the pack on adopting SaaS?

Gartner Estimates
Technology research firm Gartner Inc., based in Stamford, Conn., estimated companies spent $5.1 billion on SaaS programs in 2007 worldwide, up 22 percent from 2006. That's expected to double by 2011. Ben Pring, a Gartner outsourcing and information technology analyst, expects about 15 percent of all business software sold to be accessed via the Internet five years from now.

Venture Capital Going SaaS Exclusive?
VC invested currently in software startups is almost exclusively going into SaaS companies. "If you go to a VC and say you've got this great application, this wonderful code, and you're going to put it on CDs and mail it out to all your customers, you'll be laughed out of the meeting," Pring said. But he said the shift to SaaS is in its infancy, and many small-to-medium-sized businesses still aren't comfortable handing their critical software functions and data to an outside vendor.

Salesforce.com Success Factor
In a recent article by Greg Avery of the Denver Business Journal titled "InfoNow, Webroot are on SaaS wave: Software as a service catches on", indicates that the SaaS model -- sometimes referred to as "on-demand software" or computing "in the cloud" -- took hold in the past couple years, fueled partly by the success of San Francisco-based Salesforce.com, which has 36,000 business customers. That company, which promised "the end of software" when it launched in 2001, showed businesses could use important programs remotely and securely keep sensitive company information in someone else's data center.

Mr. Avery went on to say that that trend also has begun transforming Boulder-based Webroot Software Inc., one of the area's most successful traditional software businesses. Webroot sells one copy of its anti-spyware blockbuster program, Spy Sweeper, every 10 seconds. The product resides on the computer hard drives of more than 7 million consumers, and its distinctive green box is outsold only by bottled water in the nation's Best Buy stores. And yet, following its November acquisition of Britain-based Email Systems, Webroot is using SaaS email to break into the small- and medium-business market. SaaS email works like hotmail.com or Google email, only it's designed more for business use. The 300-employee company has 2.5 million business email customers worldwide and expects a lot of growth this year, CEO Peter Watkins said. By summer, the company plans to start selling businesses a hosted website-filtering service that's designed to keep corrupted or inappropriate sites from being accessed from client's computers. Webroot's SaaS offerings to businesses are expected to become the fastest-growing part of the company, Watkins said. Designing the key functions of the software once and hosting it in a Webroot data center eliminates the integration and custom code-writing headaches that business software development normally entails. That makes buying a SaaS product more efficient for customers and a better business model for Webroot, Watkins said. "From my side, it's dramatically more cost-effective," he said. "And that means I can put more money back into the product."

SaaS in the Litigation Market
Spending the better part of almost every business day working with law firms and corporate legal departments to address their legal and compliance ESI needs, my perspective is that SaaS is catching on in the litigation market also. With no hardware of software to install and maintain for the end users and pay-as-you-go subscription based pricing, the general SaaS model is a great fit for the fee based litigation market. And, with many of the data security myths having been addresses with the SaaS vendors moving to Tier-1 data centers such as Level 3, many of the road blocks previously setup by internal IT personnel, are no longer really valid (i.e. the SaaS vendors can provide a more secure and reliable data center than the end users can provide). I would say that one of the last legitimate roadblocks to the full scale adoption of SaaS is the current restrictions that bandwidth place on moving massive amounts of data over the Internet. And, based upon the explosion of ESI, this is one of the requirements in the ligation market. However, with bandwidth increasing along with the proliferation of compression technology, this is also becoming less of a legitimate issue.

Current Crop of SaaS Products and Vendors
Although this is not a comprehensive list of all of the SaaS vendors in the litigation market, it is a list of the SaaS (or SaaS like) technologies and vendors that I have reviewed and believe either have a significant enough client base or sufficiently advanced technology (i.e. true mutli-tennancy with self provisioning, etc.) to be considered a player:

Lexbe
Lexbe.com is a web-based case analysis and evidence management application. Case analysis features include fact and issue analysis, case calendaring, tracking of case participants, deposition analysis, case research, fact tracking and dynamic chronology and timeline generation. Document management features include full-text search, automatic optical character recognition (OCR) of PDF files, document sorting, retrieval and repository, native file review, metadata analysis, document coding, document encryption and off-line access. Lexbe.com is offered on a ASP software-as-a-service (SaaS) basis, so users can access the Lexbe Online application from any web-based computer without the need to install or maintain software. Lexbe.com is available starting at $79/month, with no set-up, cancellation fees or individual user license fees. A thirty-day free trial and online web demos are available at http://www.lexbe.com/.

ImageDepot
ImageDepot, based in Houston, Texas, is an emerging true Software-as-a-Service (SaaS) based Online Review Tool (ORT) that provides all of the rich features and advanced functionality expected from today's ORT's without all the infrastructure or associated costs of maintaining your own system. ImageDepot is available on a pay-for-what-you-use monthly subscription plan with no software or hardware to purchase and no user fees. Click here to access an online Video overview of ImageDepot. More information is available on their website at http://www.imagedepot.com/.

Ringtail
Ringtail Legal from FTI is an easy-to-use litigation document management platform. Offering the industry's best document review tool, Ringtail Legal offers flexible data management and electronic evidence discovery via an intuitive web interface, which provides geographically dispersed legal teams with instant access to every relevant case file. Built on Microsoft SQL Server for scalability, the software solution can handle hundreds of users at once and sort through thousands of cases and millions of documents quickly and accurately. The secure technology allows collaboration using a regular web browser rather than a cumbersome installed program or Citrix access. Easy to customize, the application conforms to the unique requirements of each case. Users also have the ability to add fields to the SQL data model and change the workflow without the need for dedicated – and costly – SQL talent. Ringtail Legal may be installed directly or hosted on the FTI Tier 4 ASP. Either way, users retain complete ownership of attorney work product. Ringtail Legal provides a comprehensive suite of features, including the ability to review native documents using the application that created them, saving the expense of creating thousands of TIFFs. And the product integrates with a wide variety of leading litigation support technologies, including Attenex, SER, dtSearch and CaseMap. More information is available on thier website at http://www.ftiringtail.com/web/.

iConnet Development, LLC
iCONECT Development, LLC is a world leader in litigation support and collaboration software, with products used by law firms, corporate legal departments, Fortune 500 corporations, government agencies, and medical firms. Powered by Oracle technology, iCONECT’s LAN, Web, and Offline solutions enable more than 50,000 end users to review and manage electronic and document discovery from anywhere in the world for effective collaboration with outside counsel, branch offices, and consultants. Past awards include #1 Online Document Repository (AmLaw Tech Survey), #1 Litigation Support Software (Law Technology News Awards), and #1 Web-Based Litigation Software (AmLaw Tech Survey). More information is available on thier website at: http://www.iconect.com/.

CaseCentral
CaseCentral delivers on-demand discovery lifecycle management platforms to corporations and law firms. CaseCentral’s software is backed by responsive, litigation-savvy strategic consulting, process, and support services. CaseCentral empowers customers to support a repeatable business process for litigation and regulatory response—reducing risk and business disruption, boosting productivity, and controlling costs. Founded in 1994, CaseCentral is headquartered in San Francisco, California and maintains sales and support offices in New York City and Washington DC. CaseCentral’s client list numbers over 1,100 law firms and corporations and includes 81 of the top 100 U.S. law firms. CaseCentral is consistently chosen to handle many of the most complex and highly visible litigation projects in the nation. For more information, call 1.800.714.2727 or visit http://www.casecentral.com/.

MessageOne
Headquartered in Austin, Texas, MessageOne is the leading provider of managed services for email management, archiving and business continuity. For enterprise email and wireless messaging systems, the company’s Email Management Services (EMS™) provides comprehensive email archiving, storage management and e-Discovery with the total continuity, recovery, and security protection only available from a managed service. In addition, MessageOne’s AlertFind™ provides guaranteed emergency notification and escalation to help companies protect their employees during any crisis or disaster. Millions of users around the world depend on MessageOne for its award-winning managed services. More information is available on their website at http://www.messageone.com/.

Advologix.Com® LLC
Advologix.Com® LLC, based in Houston, Texas develops and sells AdvologixPM™, the world’s first comprehensive web-based Law Practice Management Software-as-a-Service (SaaS) suite for law firms of all sizes. For more information or to sign up for a free trial evaluation of AdvologixPM please visit http://www.advologixpm.com/.

RocketMatter
Rocket Matter, LLC is a Florida-based technology company providing premier, web-based software for the legal services industry. Rocket Matter, in Beta since November 2007, exemplifies our simple, imaginative, Software as a Service (SaaS) approach to developing a superior software experience. RocketMatter provides increased security, business continuity, decreased technology infrastructure and maintenance, and improved ROI for IT expenses for solo and small firms. Our philosophy is predicated on pairing intuitive, tailored, well-designed software with exceptional customer service. Ubiquity is important in our software design: Our offerings work on Linux, Mac, Windows, as well as most on mobile devices. Client interaction is essential to our process; we involve our customers early and often in the design process. More information is available on their website at: http://www.rocketmatter.com/.

Note to SaaS Vendors
If your SaaS legal solution is not listed and you would like me to review it and list in my next posting, please contact me at mailto:ediscoveryconsultant@gmail.com

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