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Tuesday, July 24, 2012

2012 Early Case Assessment Buyer's Guide

This past week DCIG published the 2012 Early Case Assessment Buyer's Guide.  As the lead analyst on this guide, I will be posting my thoughts and comments about the development of the guide and the results over the next couple of weeks.

Please note that you can register for an August 9, 2012 Webinar where I will talk about how we developed the guide and will also demonstrate the online interactive version of the guide.  Click Here to register.

First of all, I wanted to thank Joshua Konkle from DCIG for inviting me to participate in the development of this guide.  Joshua and I spent hundreds of hours talking with Early Case Assessment (ECA) users to gather input to develop the survey questions and ranking criteria.  We then spend on told hours with the product managers from the vendors covered in the guide, processing the results and writing the report.  It was a very educational yet rewarding  exercise that I look forward to repeating it every12 months for years to come.

Beyond the ECA platform rankings, there is a lot of very valuable information in this guide in regards to the state of the eDiscovery market.  However, I can't comment on all of it at one time,.  Therefore, in this initial post, I will talk about some of the thought that went into developing the survey, the ranking criteria and release the list of the ECA tools in order of ranking.

Historically, technology industry reports have taken into consideration vendor size based on revenue and installed based and  other criteria that Joshua and I considered very subjective such as feedback from customers.   DCIG has historically attempted to be very objective in the development of its other buyers guides.  I like to call this the Dragnet approach as they have been steadfast to collect "just the facts".  As such, Joshua and I followed a similar philosophy  with the 2012 ECA Buyer's Guide.  We only wanted to collect verify and report on the facts of what these ECA tools could do and didn't take into consideration what customers thought or how much revenue the vendor generated.

In addition, DCIG has also historically taken a very bold approach of actually ranking the platforms in their guides as opposed to lumping them into conceptual categories that provide little to no value to perspective buyers. Joshua and I followed the same strategy with the 2012 ECA Buyer's Guide.  And, although we did place ECA platforms into categories such as Recommended, Excellent, Good and Basic, we did in fact rank the platforms from 1-29.  As a side not, the fact that we actually ranked the ECA tools provided for some interesting and frank discussions with many of the vendors that participated.  I plan to comment on some of these rankings in later posts.  However, as a teaser, potential buyers need to note that just because a particular ECA tool was ranked very low doesn't mean that it wouldn't be a perfect for your specific ECA requirements.  That's the beauty of the guide and more specifically the value of the Interactive Buyer's Guide (IBG) as it enables users to analyze all 29 ECA tools based on any of the 300 data point and choose those ECA tools that meet their specific criteria.  Please note that I will be talking about the IBG at length in future Blog posts and will also be demonstrating the IBG in multiple webinars over the next month.

Based on our personal experiences with ECA tools and view of where the ECA is going along with discussions with ECA users and a cross section of the ECA tool vendors, Joshua and I placed a heightened focus on ECA tools with the following features delivered as an integrated holistic platform:
  • Data Mapping
  • Analysis of enterprise ESI before collections
  • Real-time collection of enterprise ESI
  • Integration with enterprise archiving systems
  • Ability to process social media ESI
  • Legal Hold
  • Workflow management
  • Project management
  • Next generation search
  • First Pass Review
  • Next generation user interface
  • Information dashboard
  • SaaS delivery option

Based on how the participating ECA vendors answered the survey and taking into consideration these criteria, Joshua and I ranked the ECA tools for the 2012 ECA Buyer's Guide as follows:
  1. Guidance Software EnCase eDiscovery
  2. Exterro Fusion eDiscovery
  3. ZyLAB eDiscovery Bundle
  4. Orcatec Document Decisioning Suite
  5. GGO DigitalWarRoom
  6. Symantec Clearwell
  7. Autonomy Investigator and Early Case Assessment (ECA)
  8. StoredIQ DiscoveryIQ
  9. NextPoint Discovery Cloud
  10. NUIX Nuix Enterprise Discovery
  11. Kroll Ontrack Ontrack Inview
  12. EMC SourceOne
  13. Kroll Ontrack Verve Review
  14. AccessData Group AD eDiscovery
  15. Rational Retention Central Retention Server (CRS)
  16. Kroll Ontrack Ontrack Advanceview
  17. Digital Reef Advanced ECA 4.0
  18. Equivalent Data NeddleFinder
  19. AccessData Group ECA product (AD ECA)
  20. Orange Legal Technologies OneO
  21. Kroll Ontrack Verve EDA
  22. Recommind Axcelerate ECA and Collection
  23. X1 Discovery X1 Rapid Discovery; X1 Social Discovery
  24. InterLegis, Inc. Discovery360
  25. AccessData Group Summation
  26. kCura Relativity
  27. Venio Systems Venio FPR
  28. Orange Legal Technologies Purple Box
  29. Equivio Equivio Zoom

Please note that users can download a full copy of the 2012 ECA Buyers Guide at: http://www.dcig.com/buyersguides.

A couple of things to keep in mind in regards to this ranking:
  • These rankings are based upon our view of  features that are important in the ECA market which may or may not match your view of what's important.
  • In many cases the difference in the overall points that separate our rankings over 5 to 10 spots may be as few as 5 to 10 points.  And, these points could represent connections to data types or support for specific kinds of search technology (e.g. conceptual search vs. keyword) that may not be important to your organization.
  • It is also possible that the ECA tools represented in this guide have released major updates that were not reflected in the final rankings. Joshua and I had to set a cut-off date and unfortunately some of these updates occurred after the cut-off.  As an example, Kroll Ontrack has made some major enhancements to its ECA product line in the just the last 60 days.
  • There are some very  impressive ECA tools such as Equivio Zoom, Venio FPR, X1 Rapid Discovery  and OneO that are ranked lower in the guide (because they are more focused in their approach to ECA) but in fact may be the perfect solution to your specific requirements.  As an example, I just recently ranked Equivio Zoom as one of the Top Five eDiscovery Technologies to watch in the second half of 2012.

Our mission with the inaugural Early Case Assessment Buyers’ Guide was to provide users with a valuable and ongoing source of objective and unbiased knowledge to compare the features and functionality of ECA software.  We included vendors regardless of size or installed base and we went to great lengths to be as objective as possible in the scoring and ranking of the ECA software reviewed in this Guide.  If anyone has any questions and or comments about this guide I would encourage you to contact me or Joshua as we would be more than happy to discuss our approach and the results.

In my next post, I will go into  more detail regarding the thoughts behind our criteria and rankings.

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Tuesday, July 10, 2012

Top Five eDiscovery Technologies to Watch in 2012

Over the past 12 months I have had the unique opportunity to seek out and review over 100 eDiscovery technologies.  As a result, I have had the pleasure of being exposed to some exciting new technologies that will have a disruptive impact on the eDiscovery market in the second half of 2012.

With over 100 technologies to choose from, culling the list down was not an easy task.  Therefore, I had to rely upon some amount objective criteria such as platform technology stack and supported environments along with a heavy dose of my subjective opinion in regards to how disruptive a technology could be within the paradigm shift of the eDiscovery market.

The objective, more technical criteria was easy.  At least in regards to 4 of my 5 choices.  The subjective criteria was a bit more complicated as I took into consideration criteria such as pricing, positioning, deployment flexibility, management team and uniqueness.

Following are my choices for the Top Five eDiscovery Technologies to Watch in 2012:


BeyondRecognition, BeyondRecognition

Optical Character Recognition (OCR), a foundational technology for litigation services and eDiscovery hasn't changed much in 30 years.  And, vendors really haven't worked on making it more accurate or added any significant new bells and whistles.  Therefore, after I had the opportunity to spend some time with John Martin from BeyondRecognition and review his new glyph based image processing technology designed to replace OCR and more, it was an easy decision to rank Beyond Recognition as the technology that will have the most disruptive impact on the eDiscovery market in the second half of 2012.

With c
haracter and word identification and conversion accuracy at 99.5%+, single instance character and word correction, Logical Document Determination (LDD), document type classification, duplication document detection, database field indexing and a cloud based scalable architecture that can process terabytes of data per day, BeyondRecognition will most definitely have a disruptive impact on the eDiscovery market and any other markets that require large volumes of text based materials to be processed and coded.  For more information about BeyondRecognition, please visit: http://www.beyondrecognition.net/BeyondRecognition,_LLC/Overview.html.


X1 Social Discovery, X1 Discovery

With the rapid proliferation of social media, I predict there are going to be very few eDiscovery and Information Governance projects going forward that don't include potential evidence from social media sources such as Facebook, LinkedIn and Twitter.  Therefore, I included
X1 Social Discovery™ from X1 Discovery as one of my top five eDiscovery technologies to watch in 2012.

X1 Social Discovery™ is the industry's first investigative solution specifically designed to enable eDiscovery and computer forensics professionals to effectively address social media content and web content, in one single interface. X1 Social Discovery™  provides for a powerful platform to collect, authenticate, search, review and produce electronically stored information (ESI) from Facebook, Twitter, LinkedIn and other web sources.  For more information about X1 Social Discovery™ , please visit: http://x1discovery.com/social_discovery.html.



X1 Rapid Discovery, X1 Discovery

With the accelerating volume of Electronically Stored Information (ESI) in the cloud, I predict there are going to be more and more eDiscovery and Information Governance projects going forward that require potential evidence to be extracted from the cloud and possibly even processed in the cloud.  Therefore, I included 
X1 Rapid Discovery™ from X1 Discovery as one of my top five eDiscovery technologies to watch in 2012.

With X1 Rapid Discovery™, organizations can quickly access, search, triage and collect their data in their existing cloud environments, without having to first export that data; thereby transforming how organizations address the challenges of search, collection and analysis of cloud-based data. While other eDiscovery products require migrating or even shipping data to the vendor tools, X1 Rapid Discovery™  is a hardware-independent software solution that uniquely installs and operates on demand where your data currently resides. For more information about X1 Rapid Discovery™ , please visit:  http://x1discovery.com/rapid_discovery.html.


TunnelVision, Mindseye Solutions

The Early Case Assessment (ECA) tool landscape has changed dramatically over the past 12 months.  New tools that cover a larger percentage of the
EDRM model and are built upon newer more flexible technologies have emerged with aggressive new pricing models. Therefore, I included TunnelVision from Mindseye Solutions, a representative of those new ECA platforms, as one of my top five eDiscovery technologies to watch in 2012. 

TunnelVision was purpose-built by long time eDiscovery industry experts to address the challenges that organizations are facing when supporting eDiscovery and Information Governance. The technology is a simple yet flexible platform, designed to scale, and delivers full transparency. TunnelVision carries a predictable cost model and helps in managing risk, identifying exposure, and eliminating wasted time throughout the process. For more information about TunnelVision from Mindseye, please visit:
http://www.mindseyesolutions.com/.


Equivio Zoom, Equivio

Predictive coding or Technology Assisted Review (TAR) has captured the imagination of the industry in the first half of 2012.  As such, I wanted to include predictive coding technology in my list of 
top five eDiscovery technologies to watch in 2012 and therefore I chose Equivio Zoom from Equivio.

Equivio develops text analysis software for eDiscovery. Users include the DoJ, the FTC, KPMG, Deloitte, plus hundreds of law firms and corporations. Equivio offers Zoom, an integrated web platform for analytics and predictive coding. Zoom organizes collections of documents in meaningful ways. So you can zoom right in and find out what’s interesting, notable and unique. For more information about Equivio Zoom from Equivio, please visit: http://www.equivio.com/.



Summary and Comments

With over 100 technologies to choose from, culling the list down was not an easy task.  Therefore, I had to rely upon some amount objective criteria such as platform technology stack and supported environments along with a heavy dose of my subjective opinion in regards to how disruptive a technology could be within the paradigm shift of the eDiscovery market. BeyondRecognition, X1 Social Discovery, X1 Rapid Discovery,  TunnelVision and Equivio Zoom definitely met these criteria.

It will be interesting to review my list of Top Five eDiscovery Technologies to Watch in 2012 this time next year when I choose another list.  Some on the 2012 list will have had a big impact and some will not.  However, one thing is for sure, each of these technologies represents a major step forward for litigation and eDiscovery technology.


Additional Product Reviews

Over the coming weeks, I will be posting additional product reviews for each of the technologies listed in the eDSG To
p Five eDiscovery Technologies to Watch in 2012.



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Thursday, June 7, 2012

2012 Study of Global 250 General Counsel on eDiscovery

In its ongoing mission to evaluate and report on the current status and thoughts of the stakeholders from the eDiscovery, Information Governance and Cloud Computing market, eDiscovery Solutions Group (eDSG), conducted a blind survey of the General Counsel from the Global 250 on various aspects of eDiscovery.

We sent out the survey on February 6, 2012 and closed submission on May 31, 2012.  During that time, we received 127 responses for a 51% participation rate.  Please note that we believe that many of the surveys were filled out and submitted by Associate General Counsel and possibly other staff members.

For a more detailed view of the results, please go to: http://www.ediscoverysolutionsgroup.com/2012GeneralCounselSurveyoneDiscovery.html

Following is an overview of the results of this survey:

Lawsuits per Year
In order to gauge the potential requirement to engage in eDiscovery, eDSG asked how many lawsuits the enterprise was a party to in the last 12 months that required eDiscovery processing such as collections, ECA and Document Review.

Less than 10 = 28%
11 to 25 = 59%
More than 25 = 13%

eDiscovery Collections
eDSG asked if eDiscovery collections were done internally, by a third party forensics group or by outside counsel.

Outside Counsel = 51%
Third Party Forensics Group = 35%
Internal = 13%

I wasn't surprised that 86% of the respondents indicated that they outsourced collections to either a third party forensics group or outside counsel.  However, over the next 24 months as eDiscovery moves away from service providers and outside counsel to the enterprise, I predict that internal collection will increase significantly.

Early Case Assessment (ECA)
eDSG asked if Early Case Assessment (ECA) was done internally, by a third party Legal Process Outsourcing (LPO) group or by outside counsel.

Outside Counsel = 51%
LPO = 29%
Internal =  20%

I was surprised that 51% of the respondents indicated the Early Case Assessment (ECA) was done by outside counsel. It is possible that there was some confusion with the term LPO, even though I provided an explanation that LPO included litigation service providers.  Over the next 24 months as eDiscovery moves away from LPOs and outside counsel to the enterprise, I predict that internal ECA will increase significantly.

Document Review
eDSG asked if Document Review was done internally, by a third party Legal Process Outsourcing (LPO) group or by outside counsel.
Outside Counsel = 43%
LPO = 43%
Internal = 13%

Top Concerns Over the Next 12 Months
eDSG asked the respondents to indicate the top concerns were over the next 12 months.  Please note that respondents were able to check more than one top concern.

Overwhelmed with ESI = 51%
Managing the Cost of eDiscovery = 100%
Understanding the Impact of Social Media = 75%
Understanding and Leveraging New Technology = 59%
Education and Training of Staff  = 79%
Outside Counsel Not Providing Adequate Support for eDiscovery Requirements = 63%
Collaboration between internal stakeholders = 91%

This question revealed the most significant results.  100% of the respondents indicated that they were concerned about managing the cost of eDiscovery.  91% indicated that they were concerned about collaboration between internal stakeholders.  79% were concerned about education and training of staff and 75% were concerned about understanding the impact of social media.  51% were overwhelmed with ESI.

Top Frustrations Over the Past 12 Months
eDSG asked the respondents to indicate the top frustrations over the past 12 months.  Please note that respondents were able to check more than one frustration.

Cost of eDiscovery not declining as rapidly as expected = 95%
Outside Counsel Not Providing Adequate Support for eDiscovery Requirements = 75%
Dealing with eDiscovery Software Vendors = 80%
Rapidly Changing Technology = 81%
Increase in the Amount of ESI = 90%
Legacy LPOs Not Providing Adequate Support for eDiscovery Requirements = 75%
Lack of Understanding of Internal eDiscovery Requirements = 65%

Top Pet Peeves Over the Past 12 Months
eDSG asked the respondents to indicate the top pet peeves over the past 12 months.  Please note that respondents were able to check more than one pet peeve.

Annoying eDiscovery Vendor sales people = 65%
Outside Counsel's refusal to take responsibility on eDiscovery = 50%
Lack of Support from Information Technology (IT) group = 50%
Anyone that states that litigation in now all about technology = 75%
Outside Counsel and LPOs Knowingly Low Balling Cost Estimates = 85%
LPOs dropping the ball on eDiscovery Projects = 75%
eDiscovery Cost Overruns = 75%
Small Suits that Cost More to Process than Settle = 50%

Top pet peeves is my favorite category as it provides some very interesting insight into what is really going on within these organizations.  And, it provides great feedback for LPOs and outside counsel.

85% of the respondents indicated that a top pet peeve was outside counsel and LPOs knowingly "low balling" cost estimates.  75% indicated LPOs dropping the ball on eDiscovery projects, eDiscovery cost overruns and anyone that states litigation is now all about technology.  65% indicated annoying eDiscovery vendor sales people.

Next week I will post the results of Global 250 General Counsel plans for eDiscovery over the next 12 months.

For a more detailed view of the results, please go to: http://www.ediscoverysolutionsgroup.com/2012GeneralCounselSurveyoneDiscovery.html


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Monday, April 23, 2012

Virtual eDiscovery Arrives

On Monday April 17, 2012, X1 Discovery out of Pasadena, California announced a major release of X1 Rapid Discovery, it’s Early Case Assessment (ECA) and Search platform.  This latest version of X1 Rapid Discovery (X1RD) is actually a major rewrite of the architecture and user interface resulting in the first virtual Early Case Assessment (ECA) platform that users can remotely deploy to wherever Electronically Stored Information (ESI) is located.

I had to the chance to talk with Skip Lindsey, EVP Sales and Business Development at X1 Discovery about the genesis of  X1RD.  He indicated that they wanted to build on the success that they had seen providing advanced search and ECA to traditional enterprise clients with ESI behind a firewall by expanding support to the cloud.  However, they didn’t want to be just another “me too” ECA cloud platform.  Therefore, they decided to expand X1RD capabilities to run as a virtual application designed specifically to run in a private or public cloud environment in addition to its legacy support for traditional enterprise environments.  He also indicated that they wanted X1RD to be highly scalable, easy for users to install and manage remotely, easy for users to move the virtual components to the data and conducive to a very disruptive pricing model.  I think that they accomplished those goals and most certainly have earned a first mover status in the ECA platform market.

In today’s complex enterprise environment, X1RD should be a very attractive multi-purpose ECA alternative for users that currently have ESI scattered around behind their corporate firewall, in private clouds and maybe even held captive with one of the Cloud Service Providers (CSPs).  The major paradigm shift is that X1RD enables users to move the ECA process to the ESI whereas current ECA technology requires that ESI be collected and moved to the ECA platform either manually or over slow Internet pipes. 

Current ECA Best Practices
Currently, an enterprise faced with responding to a legal matter has to identify where all potentially responsive ESI may be located, figuring out what they need to harvest and then collect and aggregate the ESI to a centralized physical location before they can even start the process of analysis and first pass review.  This process can take weeks and months and cost thousands if not millions of dollars.  Adding ESI stored with a Cloud Service Provider (CSP) has only exacerbate the situation by adding another layer of complexity, more time and more cost.  For a more detailed overview of virtualization, please see “Virtualization is the Key to Future eDiscovery Software”.

X1RD Changes the ECA Paradigm
X1RD completely changes the ECA paradigm.  X1RD users have the ability to remotely load the X1RD virtual application into the computing environment of their choice as long as they have the appropriate credentials to do so.  Once loaded, uses can then remotely configure, though a drag and drop user interface, as many X1RD virtual ECA processing engines as may be required to collect, index and process a given set of ESI. Please note that users will have the flexibility to configure X1RD on a single physical machine with multiple virtual machines or on multiple physical machines, each with multiple virtual machines.  Because X1RD has done such a good job of masking the complexities of configuring and managing this virtual environment from users, its value may be lost on many users.  However, this flexibility has tremendous operational and financial benefits.

As an example, because X1RD enables users to break up a large processing task into multiple smaller processing units that can  run on very inexpensive machines, it doesn’t require users to purchase and/or provision high-end and expensive servers.    X1RD enables users to either leverage the computing resources that they currently own foregoing the requirement to invest in large expensive servers that will sit idle for most of the time waiting for the next big ECA job.

X1RD installs in a matter of minutes and the user interface is attractive, easy to understand and provides everything that a litigation knowledge worker requires to search, analyze, review, tag and generate a load file in today’s eDiscovery environment.   Further, for those clients that don’t want to run their own X1RD environment, X1RD lends itself to a managed services model that enables Managed Service Providers (MSPs) to run X1RD for clients from a remote location. 

X1RD and the Amazon Cloud
As recently reported on the New York Times Bits Blog, in a post titled, “Amazon Creates a Software Rental Store”, Amazon.com’s Amazon Web Services (AWS) business, facing looming competition for its business of renting online data storage and computing, is introducing a store where customers will be able to rent business software from a number of third-party providers, including I.B.M., Microsoft and SAP.  And now, X1RD is the first virtual ECA platform listed in the Amazon Web Service (AWS) ISV catalog.

Although there are other ECA and Document Review platforms running in the Amazon Web Services (AWS) cloud such as NextPoint, there is a very distinct difference as AWS clients will be able to remotely load X1RD into their AWS computing environment and configure it to collect, search, analyze, complete first pass review and generate a load file without having to move any ESI. Its the paradigm shift that I eluded to earlier that enables users to move X1RD to the ESI as opposed to the legacy approach of moving ESI to the ECA platform.

Currently, X1RD will be able to provision and configure computing power, memory and storage from AWS as required for any ECA processing task large or small, provision X1RD from X1 Discovery and be processing ESI in a matter of hours. Once completed with the responsive ESI exported, users will be able to shut down this ECA environment and only pay for what they utilized.  It’s a much different model and the industry has ever seen.

With the announcement of the AWS partnerships with IBM, Microsoft and SAP, it will be interesting to see what AW does with the X1RD opportunity from a marketing perspective.  As indicated in “Amazon is Overlooking the Financial Value of eDiscovery”, there is a latent demand for eDiscovery and Information Governance in the Cloud.  And, in fact not providing such services may in fact be a barrier to entry for some enterprise clients.  I am very encouraged by the announcement that AWS has added X1RD to its ISV catalog and optimistic that AWS may in fact understand that providing Information Governance, Search and eDiscovery may be one of the keys for Amazon to increase the $1.19 Billion in revenue that AWS posted for 2011 to a much higher level than could have ever been imagined with just IaaS or even standard PaaS services.

Disruptive Pricing
X1 is also pushing the pricing envelope by pricing X1RD at $1,000 per day or $5,000 per week for “all you can eat” or process.  As an alternative, they also offer the option of a $25,000 perpetual license with 20% annual maintenance.  This pricing model is very aggressive and is going to put downward pressure on the legacy model of pricing ECA processing on a per gigabyte basis.

Final Observations and Comments
As indicated in “eDiscovery will follow the Cloud Computing Boom”, with the expanding volume of ESI in the cloud, the demand for Information Governance and eDiscovery is sure to follow.  However, just moving your ECA or Document Review platform to the Cloud is not necessarily the answer as it still requires users to move large amounts of ESI to that platform.  The most efficient model is to move the ECA application to the ESI.  And, it appears that with the release of most recent version of X1RD that X1 Discovery has become a first mover in the race to capture this market.

In addition, in today’s complex enterprise environment, X1RD should also be a very attractive multi-purpose ECA alternative for users that currently have ESI scattered around behind their corporate firewall, in private clouds and maybe even held captive with one of the Cloud Service Providers (CSPs).

As has been reported on several other blogs about this subject, with X1RD forging the way, other ECA vendors are sure to follow. However, that may be easier said then done,   With years of experience designing, developing and maintaining complex enterprise class applications, I would suggest that many current legacy ECA vendors have code bases that would be literally impossible to move to the cloud as self-provisioning and remotely configurable virtual apps that can run on almost any class server.   The only option would be a complete re-write which in many cases is a very dangerous path for a software vendor with a large installed based as it opens up that base to explore alternatives such as X1RD.  As such, I am not convinced that  many legacy ECA vendors will follow this trend.

One thing is for sure, the demand to process ESI that is in the cloud is going to continue to increase. And, it appears that users are going to have several options to address this demand; moving the ESI to the ECA platform or moving the ECA platform to the ESI.

Either way, the next few years are certainly going to be exciting times in the eDiscovery in the Cloud market.

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Thursday, April 19, 2012

The Top 5 Most Requested Features for Early Case Assessment Platforms

The week of April 9, 2012, eDiscovery Solutions Group (eDSG) ran a poll that asked voters to rank the top 5 most important features for an Early Case Assessment (ECA) platform.  Having spent the last 6 months analyzing ECA technology from the top ECA vendors in the world and talking to hundreds of end users in preparation for the release of the 2012 DCIG/eDSG Buyers Guide, the results of this survey were not overly surprising.  However, the results are very telling in regards to the paradigm shift that has occurred in how users view Early Case Assessment.  Therefore, I wanted to publish the details of the results of this poll.

Summary of Results
54% of the voters ranked Advanced Analytics as one of the top 5 most important features for an Early Case Assessment (ECA) platform. Support for Collection of Social Media and Collaboration came in second with 31%. Cost Calculations, Predictive Coding, Delivered as SaaS and Semantic Search came in third with 23%.

Following is an analysis and commentary for each of the categories:

Advanced Analytics
I was not surprised that 54% of the voters ranked Advanced Analytics as one of the top 5 most important features for an Early Case Assessment (ECA) platform. After all, ECA is all about "analyzing" your potential pool of ESI to determine where it is located, what you have and how it will affect your case strategy.  However, I thik that there is a subtle hint hidden within this top ranking that may signal a change in way users view the process of eDiscovery . As a followup, it would be interesting to ask users to define "Advanced Analytics" and then identify where within the
EDRM, they believe these analytics should be utilized.

Historically, the standard eDiscovery workflow followed the EDRM and therefore ESI that was potentially responsive or relevant was identified via standard file type, custodian and data parameters, collected or ingested, culled. analyzed and reviewed.  This analysis stage is what many within the industry now refer to as Early Case Assessment (ECA).  However, in 2012, there are technologies that allow for identification and analysis of ESI before it is even ingested.  Further, there is also now growing demand for the identification and analysis of live ESI residing in Content Management Systems (CMS), archiving systems, a wide variety of private and public email systems, public cloud storage and even public social media stores.  As a result of these changing requirements, I contend that the fundamental definition of Early Case Assessment (ECA) is evolving and therefore it may be time to adjust best practices, workflows and our expectations of ECA platforms should support.

Support for Collection of Social Media
I was also not surprised that 31% of the voters ranked Support for Collection of Social Media as one of the top 5 most important features of an Early Case Assessment platform. Corporate legal departments, corporate IT departments and outside counsel are beginning to realize the requirement to harvest potential evidence from social media sources such as Facebook, LinkedIn, Twitter, MySpace and Google+ is real and therefore they want their ECA platform to be able to handle these file types.


Collaboration

31% of the voters ranked Collaboration as one of the top 5 most important features of an Early Case Assessment platform.  As the use of social media and SaaS based communication and collaboration applications has become more mainstream and therefore accessible to the enterprise knowledge worker, their expectations have risen accordingly. Therefore, it is not surprising that users expect their ECA platforms to follow the collaboration trend and support communications and collaboration for multiple different types of users from multiple different geographically regions.  Security is obviously an issue that the ECA vendors will have to address as the information that ECA platforms is more sensitive and can lead to sanctions and financial penalties.

Cost Calculations

23% of the voters ranked Cost Calculations as one of the top 5 most important features of an Early Case Assessment platform.  It has been well established that 70% of the cost of eDiscovery is in the cost of review and therefore there is a renewed emphasis on reducing the amount of ESI that eventually has to be reviewed.  With this requirement in mind, users have  been relying upon gathering the appropriate information such as amount of ESI by file type and custodian, etc. and plugging it into an Excel spreadsheet to forecast the eventual full cost of eDiscovery.  As such, I completely understand that users now want this capability added to the ECA platform.

Predictive Coding

I was very surprised that 23% of the voters ranked Predictive Coding as one fo the top 5 most important features of an Early Case Assessment platform.  Predictive Coding currently normally resides as an alternative option to manual tagging and review within the Review section of the EDRM. So, I am not sure if these voters are confused or are truly contending (with their vote) that Predictive Coding technology needs to be pushed further to the left and utilized during the early stages of ESI identification, collection and analysis.

I predict that Predictive Coding or some form of Machine Driven Analysis will be incorporated into the early stages of ESI identification, collection and analysis drvien by the demands to increase operational efficiencies and reduce costs.  Pleaes note that eDSG in partnerhsip with DCIG will be releasing a Predictive Coding Buyers Guide this summer.  And, without giving away any vendor secrets I can state that the market is going to intriqued with the extent to which Predictive Coding or Machine Driven Analysis is going to be available to support the entire eDiscovery lifecycle.


Delivered as SaaS
23% of the voters ranked SaaS Delivery as one fo the top 5 most important features of an Early Case Assessment platform.  As I have said many times, I believe that the "train has left the station" on SaaS based eDiscovery platforms.  The value proposition of operational efficiencies and costs savings are just too high for this train to turn around and therefore I was a bit surprised that Delivery as SaaS wasn't ranked higher.  I suspect that maybe users are now expecting this feature to a standard option of any ECA platform and therefore failed to vote for it.  Please note that I did not inlcude an option to vote for eDiscovery in the Cloud as that has become a very confusing and soon to be highly debated topic of disucssion.


Semantic Search
23% of the voters ranked Semantic Search as one of the top most important features of an Early Case Assessment platform. Semantic Search is the perfect companion of  Advanced Analytics and is therefore another feature that many users believe needs to be pushed further to the left in the EDRM.  The requirement of indexing makes it somewhat difficult to utilize during the identification and pre-collection phase.  However, I have seen several real-time architectures that are in fact adressing this with real-time ongoing indexing as part of a larger and more comprehensive Information Governance platform.  Therefore, as this infrastructure is more fully tested and the costs reduced, I would suspect that we will see Semantic Search utilized further to the left in the coming months and years.
First Pass Review
I was very surprised that only 15% of the voters ranked First Pass Review as one of the top 5 most important features of an Early Case Assessment platform.  As stated previously, it has been well established that 70% of the cost of eDiscovery is in the cost of review and therefore there is a renewed emphasis on reducing the amount of ESI that eventually has to be reviewed.  Therefore the concept of a First Pass Review (FPR) or a mini review done during ECA has become a well accepted practice before a final review set is defined and exported to a full blown review platform.

I predict that with the advancement of Predictive Coding techniques and other associated technologies that First Pass Review is going to expand and cannibalize a major percentage of the current Document Review platform market.  And, at some point in time, what we now define as Document Review will vanish as ESI will go directly from storage or real-time location to analysis and review and then directly into some digital form ready for the courtroom.  As evidence of this trend, it is interesting to note that we are now seeing many of the legacy ECA vendors expanding their FPR capabilities into full Document Review and many of the legacy Document Review vendors expanding their capabilities into ECA.

Workflow Management

I wasn't overly surprised that only 15% of the voters ranked Workflow Management as one fo the top 5 most important features of an Early Case Assessment platform.  I believe that workflow management is an extremely important feature of any operational application. However, I think that the definition of the workflow within the eDiscovery lifecycle is in such a state of flux that it may be premature to try and define a workflow management system that vendors can be confident will be pertinent for more than just a few release cycles.  That being said, I believe that an ECA platform should provide solid workflow for First Pass Review and Predictive Coding and at least a user dashboard outlining the status of a "project" or "matter" as it makes its way from identification to collection to analysis to review to production.  In my opinion, the real answer is a flexible workflow management system that enables users to define their eDiscovery lifecycle. Whether this is accomplished through an integrated OEM solution or as a proprietary solution will be up to the individual vendors to decide.

Legal Hold

Only 8% of the voters ranked Legal Hold as one of the top 5 most important features of an Early Case Assessment platform because many beleive that it is outside the current definition of ECA and  they still don't know if they want to utilize a best-in-class or a holistic approach to support the entire eDiscovery workflow.

I predict that adding in real-time data mapping and coupling it with real-time legal hold that actually preserves ESI in a forensically sound manner is the direction that the market is going to take.  Whether this is accomplished through an integrated OEM solution or as a proprietary solution will be up to the individual vendors to decide.

Real-time Collections
8% of the voters ranked Real-time Collection as one of the top 5 most important features of an Early Case Assessment platform.  Given where eDiscovery has come from in the past 5 years, Real-time anything is a very aggressive position to take.  However, as the enterprise IT organizations become more involved in the eDiscovery process and eDiscovery becomes a subset of the Information Governance process, Real-time identification, analysis and collection will become an industry accepted best practice.

Summary

This poll was very telling in regards to how users are changing their views and associated requirements for what an Early Case Assessment (ECA) platform should support.  ECA is definitely moving further to the left in the eDiscovery lifecycle and it appears that users want the eDiscovery platform vendors to support this paradigm shift.

Click Here to review the results of all of the polls that eDSG has been running  on a weekly basis since June of 2011 on the current status of Information Governance and eDiscovery.  Click Here to vote in the most recent eDSG Weekly Poll.

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Wednesday, April 11, 2012

Virtualization is the Key to Future eDiscovery Software

Historically, eDiscovery software has run on a physical computer. However, this architecture has a significant number of operational and financial flaws that make it an unattractive option as the world of information management and therefore the eDiscovery industry moves forward and into the arena of Cloud Computing.

First of all, even though the cost of computing power (i.e. processors, memory, etc.) has dropped dramatically over the past several years and will continue to drop, with the option to run software in a virtual computing environment, it no longer makes any sense to "bind" software to single physical computer. The model is not flexible and doesn't leverage operational investments in data center infrastructure, rack space, power, cooling, cabling, maintenance and support.

Further, software running on a single physical computer is very inefficient as it rarely utilizes the power of that computer.  And, when a physical computer is maximized, a new physical computer has to be provisioned (i.e. setup, configured, software loaded, tested, etc.) which takes time and therefore costs money.

Virtual computing environments, on the other hand, enable multiple virtual machines to run on the same physical machines thereby maximizing the utilization of the available computing power. Theoretically, users should be able to provision new virtual machines (within a physical machine) to meet specific computing demands without having to necessarily provision a new physical machine.  Taking this virtual machine concept to a data center or in come cases a multi-data center concept, Cloud Service Providers (CSPs) such as Amazon (AWS) and Rackspace utilize the latest technology to enable the seamless provisioning of additional virtual computing environments within a single physical machine and  across as many physical machines as is necessary to complete a task.  Further, most CSPs now enable users to also provision the appropriate amount of memory and storage as may be required for a specific task and for a specific amount of time. As an example, if Early Case Assessment  (ECA) software ran in a virtual environment, users could provision a large number of both virtual and physical machines (with the appropriate memory and storage) to tackle the high processing requirements during ingestion, indexing and initial processing and then reduce the number of machines (virtual and physical) once the data was normalized and moved to a less computer intensive task such as document review.

The added benefit to the virtual eDiscovery software approach is that the vendor have the flexibility to only charge users for the computing power, memory and storage that they use as opposed to the current model that basically charges users to subsidize idle computing resources.

I would imagine that this all sounds very attractive to end users.   And, I am sure that once these users completely understand the operational and financial value of virtual eDiscovery software, they won't be interested in an eDiscovery platform that doesn't run in a virtual environment.  Adding more incentive for users to be interested in exploring virtual eDiscovery software solutions, eDiscovery software that is not virtual will not be very adept at running in the new cloud computing environment where virtual machines are the norm if not the requirement.

Unfortunately, there are only a few eDiscovery software platforms that have been designed to run in a virtual environment.  And, although there are both hardware and software solutions available that will enable a legacy software solution (not designed for a virtual environment) to run in a virtual environment, they are somewhat clumsy and add additional expense and unnecessary layers of processing.

So, in the next several weeks, as a lead in to the release of the eDSG/DCIG 2012 Early Case Assessment Interactive Buyer's Guide, I will be publishing several articles on which eDiscovery software vendors have eDiscovery software that was designed to run in a virtual environment.

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Tuesday, March 20, 2012

eDiscovery Will Follow the Cloud Computing Boom

The National Inflation Association (NIA) reported this week that  after years of rumors about cloud computing going mainstream around the world, the cloud computing boom is now finally here. They predict that by the year 2013, cloud computing could become a bigger boom on Wall Street than the dot-com boom was in the year 2000. Cloud computing is currently a $74 billion industry that accounts for 3% of global IT spending, but in 2013 cloud computing is expected to become a $150 billion market.

The NAI further stated that 2012 will be remembered as the year in which cloud computing started to become widely adopted worldwide. Cloud computing is expected to create 14 million new jobs globally by year 2015. In the consumer space, Gartner is predicting that cloud services will be on 90% of personal consumer devices by year 2015 so that consumers can store, connect, stream, and synchronize content across multiple platforms at different locations.

Industry analyst are heralding the explosion in the Cloud computing market as great news for the Cloud Service Providers (CSP).  According to a forecast from independent technology analyst firm Ovum, the global public cloud services market will more than triple in size over the next five years to reach revenue of $66 billion in 2016 and the market will see a compound annual growth rate (CAGR) of 29.4 percent from the $18 billion it reached at the end of 2011.  Ovum goes on to report that in terms of the cloud computing service lines, Software-as-a-Service (SaaS) will shrink from 87 percent of the market in 2011 to 62 percent in 2016 due to the rise of infrastructure as a service (IaaS) and platform as a service (PaaS), which will grow from 9 percent and 5 percent, respectively, to 23 percent and 16 percent by the end of the forecast period.

And, there are numerous other studies by most of the major international industry analysts that predict a dramatic increase in the size of just about everything having to do with Cloud computing.

However, it is my impression that the inevitable and potentially dramatic increase in the demand for eDiscovery and Information Governance due to this explosion of the Cloud computing market, is flying under the radar of most analysts.  eDiscovery and Information Governance professionals know full well that there is a linear and possibly an expontial relationship between the volume of Electronically Stored Information (ESI) and the demands and cost of identification, collection, analysis, processing and production of that ESI.

In 2011, Gartner predicted that the eDiscovery market would reach $1.5 Billion in revenue by 2013.  And, depending upon which analyst you follow (and believe), the size of the Information Governance market is anywhere from 2X to 10X the size of the eDiscovery market.  I believe that all of these forecasts are extremely low.

Further, a recent study by eDSG on "How Cloud Service Providers Support eDiscovery and Information Governance" as reported on this blog on March 7, 2012, indicated that 95% of  the Cloud Service Providers and 98% of the general counsel from the global 2000 (based on participation in the survey) did not have a plan for responding to eDiscovery and Information Governance requests for ESI residing in CSP facilities.

In summary, my prediction is that the explosion in the size of the Cloud computing market as reported by the National Inflation Association is really good news for any of the technology and service providers, along with their investors, that are planning to support eDiscovery and Information Governance in the Cloud.  As the name of this blog implies, the eDiscovery paradigm shift is underway and the demand of Cloud computing is only going to make that shift and the associated size of the market even bigger.

The full text of the press release by the National Inflation Association: http://www.marketwatch.com/story/cloud-computing-is-new-wall-street-boom-says-nia-2012-03-20

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Wednesday, January 25, 2012

The Perfect Storm: eDiscovery and Cloud Service Providers

The market for Cloud Service Providers (CSPs) is very sunny.  Forrester Research predicted in a research report published earlier this year titled, “Sizing the Cloud” that the global cloud computing market would reach $241 billion in 2020 compared to $40.7 in 2010.  And, Gartner Predicts that the eDiscovery market will reach $1.5 Billion by 2013.  However, based upon the research that I have completed over the past sixty (60) days, Cloud Service Providers (CSPs) and their clients are ignoring eDiscovery as an important component of a standard cloud service offering.

I have some theories in regards to why this is the case:

CSPs DON'T UNDERSTAND eDISCOVERY

Over the pat five (5) years Cloud Service Providers (CSPs) have been busy focusing on their core offerings of Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), honing their value propositions and trying to figure out how to differentiate themselves from the pack.  Overwhelmed with the rudimentary issues of what to offer and how to make a profit , eDiscovery has not been a requirement that has reached the road map of any CSPs that I have interviewed.

Most of the reasons behind this is the fact that eDiscovery is actually a "
latent pain" that the CSP's clients and prospects are not asking for (I will cover this in more detail in the next section).  However, part of the reason may be just plain semantics.  I have found that when you ask a CSP business development executive if their clients are asking about eDiscovery, the answer will be no.  However, if you change the question and ask if their clients are asking about information governance, compliance, business analytics or something even simpler like universal or federated search, the answer may be yes.  This subtle difference is confusing to most in the eDiscovery market and therefore it is no wonder that it is very confusing to the CSP market.As In indicated in my Blog post on September 15, 2011,titled, "Evolving from Information Governance to eDiscovery", I believe that eDiscovery is actually part of a larger market called information governance (IG).  And, as Sunil Soares, the Director of Information Governance within the IBM Software Group indicated in a blog post on April 11, 2011 titled, Why Information Governance is a Market, Not Just a Process, “information governance is like the blind man and the elephant. Depending on which part of the elephant you touch, people define information governance to include master data management, data stewardship, data quality management, metadata management, business glossaries, information lifecycle management and security and privacy.” 

I would actually include several other components as integral parts of IG in pursuit of my premise that if Gartner predicts that the eDiscovery market is going to reach $1.5 Billion by 2013, the information governance market is going to be many times this size.  Or, in other words, more than likely the largest  software and services market on the planet in the next five (5) years (Note that HP paid $11 Billion for Autonomy to play in the IG Market).

So, maybe CSPs need to think of eDiscovery as Information Governance and concentrate on the fact that information governance is potentially the single biggest market on the planet in the coming years?


CSP CLIENTS DON'T UNDERSTAND eDISCOVERY
Another interesting fact emerged from my recent study on eDiscovery in the CSP market.  It appears that most CSP enterprise clients don't understand eDiscovery.  Come to find out, a very high percentage of the standard CSP client base are actually "renegade" business units with global 2000 enterprises that were unhappy being held hostage by their IT organizations and decided to outsource their information management to a CSP.  Unless the business unit in question is the legal department (which is highly unlikely), the stakeholders within these units have no idea what eDiscovery or information governance is or would they know to even ask their CSP if it can be supported if the need were to present itself.

After further investigation into this market dynamic, the story actually gets even more interesting.  If one of these global 2000 enterprises is sued and is presented with a request to produce information (ESI) or some governance regulatory entity asks for proof of compliance, the request is normally handled by the General Counsel (GC) and legal department.  More than likely the first place the GC will go is to the IT department asking for its help in producing the requested data (Please note that most global 2000 enterprises are now relatively adept at the process of internal eDiscovery).  However, the GC may not even know to ask about the data (ESI) from the renegade business unit and if they do, the renegade business unit is not going to know how to comply with the request and their IT department is probably not going to help since they are no at all happy that they went to a CSP for IT services in the first place.  Given all of this, the business unit executives or the GC may call the CSP and ask for help.  However, since the CSP doesn't really understand eDiscovery, they aren't going to be much help.  Basically, at this point the entire eDiscvoery process can get pretty ugly.  The GC is under a legal obligation to respond (i.e. Federal Rules of Civil Procedure) under a fairly limited time frame with financial and other sanctions are real possibilities for non-compliance with the request.


THE PERFECT STORMSo, unfortunately, what I have determined to be the current status in the Cloud Service Provider (CSP) market is the perfect storm of neither the CSP or the CSP's client base understanding the need for eDiscovery.  However, there are solutions and there is hope.

THE ROADMAP FOR SUCCESS FOR CSPs
The roadmap to success for the CSPs is actually not that complicated.  CSPs need to get serious about providing eDiscovery and/or information governance as a component or their standard offering.

In a January 8, 2012 blog post titled, "Cloud Computing Architecture and eDiscovey", I stated that "It is within the Platform-as-a-Service (PaaS) layer where eDiscovery services belong.  In fact, this may be a good time to coin the term eDiscovery-as-a-Service (eDaaS)... And, since providing eDaaS as a standard option for any PaaS offering makes so much sense and could provide a first mover and key competitive advance for Cloud Service Providers (CSPs), I predict that we will see several eDaaS offerings before the end of 2012.  And, I also predict that once the eDaaS offerings hit the market, the legacy eDiscovery platform providers will be forced to re-evaluate the value propositions of their non eDaaS offerings in the cloud."

CSPs can contact me at cskamser@ediscoverysolutionsgroup.com for additional insight on which technology vendors currently have or are about to announce eDaaS offerings.

THE ROADMAP FOR SUCCESS FOR CSP CLIENTS
The roadmap to success for the CSP clients is also actually not that complicated.  First of all, enterprise business unit stakeholders need to add eDiscovery and Information Governance to  their list of requirements for the CSPs.  And, they need to seek out and collaborate with their legal and IT departments in regards to a plan to follow when an eDiscovery and/or compliance event occurs.  It just make sense and its not complicated.

Enterprise stakeholders that are contemplating or already working with a CSP can contact me at cskamser@ediscoverysolutionsgroup.com for additional insight on what to expect from their CSP and what best practices to follow when an eDiscovery and/or compliance event occurs.

CONCLUSION
Both the cloud and the eDiscovery / Information Governance trains have left the station and therefore it is no longer an option for either Cloud Service Providers or their clients to ignore the legal requirements and business benefits.  The current practices to address the issues of eDiscovery or Information Governance are ugly at best.  However, the roadmap for success is not that complicated.  And, the rewards for both the CSP and their clients is well worth the investment.

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Saturday, January 7, 2012

Enterprise App Store in the Cloud

If you are using the iPhone, iPad or one of the Android portable devices,  you are already familiar with the concept of an "App Store".

The Apple App Store opened on July 10, 2008 via an update to iTunes. On July 11, the iPhone 3G was launched and came pre-loaded with iOS 2.0.1 with App Store support; new iOS 2.0.1 firmware for iPhone and iPod Touch was also made available via iTunes. As of June 6, 2011, there are at least 425,000 third-party apps officially available on the App Store. As of January 18, 2011, the App Store had over 9.9 billion downloads and at 10:26 AM GMT on Saturday, January 22, 2011, the 10 billionth app was downloaded from Apple App Store. As of late 2011, 200 million iOS users have downloaded over 18 billion apps from its App Store.

And although the Android platform is a relative new commer to the App market, it now boasts 400,000 Apps with over 10 billion downloads.

So, the paradigm shift has occurred.  Mobile devices users (which before too many more years will make up the majority of computer users) now expect to be able to search for an App in the cloud and then download it to their device, pay for it with a credit card and start using it immediately. It is just the way "things" are suppose to work. So, why aren't we doing this in the enterprise software market?

Software-as-a-Service (SaaS)
Software-as-a-Service (SaaS) is the closest thing to the App Store model in the enterprise market. SaaS, sometimes referred to as "on-demand software," is a software delivery model in which software and its associated data are hosted centrally, typically with a Cloud Service Provider (CSP) or directly from the software vendor, and are typically accessed by users using a thin client, normally using a web browser over the Internet.

SaaS has become a common delivery model for most business applications, including accounting, collaboration, customer relationship management (CRM), enterprise resource planning (ERP), invoicing, human resource management (HRM), content management (CM) and service desk management. SaaS has been incorporated into the strategy of all leading enterprise software companies.  Please note that the term software as a service (SaaS) is considered to be part of the nomenclature of cloud computing, along with Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) which is the topic of my next Blog post.
According to a Gartner Group estimate, SaaS sales in 2010 reached $10B, and were projected to increase to $12.1b in 2011, up 20.7% from 2010. Gartner Group estimates that SaaS revenue will be more than double its 2010 numbers by 2015 and reach a projected $21.3b. Customer relationship management (CRM) continues to be the largest market for SaaS. SaaS revenue within the CRM market was forecast to reach $3.8b in 2011, up from $3.2b in 2010.So, where is the Enterprise App Store that houses and enables users to download Enterprise Class SaaS Apps?

The Enterprise App Store
The Enterprise App Store doesn't really exist, to any great degree, because the infrastructure and business model is much more complicated in the enterprise market than it is in the consumer market.  And, due to the quarter over quarter financial pressues, the legacy software vendors are "dragging their feet" on moving to this model as it will completely change their revenue models and the transition could prove to  be a short term disaster for profits and stock prices.  In the long run, an Enterprise App Store delivery model should generate more revenues with dramatically higher margins.

Nevertheless, Amazon and several of the other Cloud Service Providers (CSPs) are beginning to offer application catalogues that resemble the Apple and Android App Stores.  And, there are rumors that several of the Auzre cloud platform providers are also developing the infrastructure and backoffice administration to support an Enterprise Class App Store in the Cloud.

Where it Runs
One of the major differences between downloading a single application to an iPhone and downloading an enterprise class application for use throughout an organization is where and how it runs.  Obviously, the iPhone app runs on a single iPhone.  However, the enterprise app will more than likely have to run in a virtual environment on a server and will have to provide access to multiple users.    This is a much different configuration and will require a much more robust infrastructure.

Pricing
Another major difference is pricing.  Many iPhone and Android apps are free and very few cost more than a few dollars.  In addition, users can download them and pay for them, as an example, with the credit card they have on file with iTunes. Enterprise apps on the other hand may cost hundreds of thousands of dollars and won't be paid for via a credit card.  Once again, the infrastructure and backoffice administrative systems to support this new model are much different.

Further, thanks to $.48 per hour per server pricing from CSPs like Amazon, use pricing is also another variable that enterprise App users will begin to demand.  Instead of paying $250.000 per year for an SMB enterprise ERP system, users may want to pay $100 per hour per instance or per user for the time that they are actually using the App.  And, once again, the infrastructure and backoffice administrative systems to support these requirements are much different than anything that has been done in the past.

The New Enterprise App Paradigm in the Cloud
The new Enterprise App paradigm in the cloud will enable enterprise users to access the cloud (where all of their data now resides) from any computing device (more likely a mobile devices as time marches on) and choose which Apps they want to use.  The system (more than likely supported by a major CSP) will pull an instance of the requested App out of an App library, configure it to support the needs of the user and then charge the user's enterprise for the time that the App is actually used.  This may sound crazy.  But, this paradigm is not that far away.  And, once one of the major CSPs begins to offer this as a first mover, the market will explode and the rest of the CSPs will have to follow or perish (i.e. how viable would a smart phone be that didn't enable you to download applicaions?).

Targets of Opportunity
The target markets for an Enterprise App Store are wide spread with both operational and financial benefits for both large and small enterprises.  However, there are a few vertical application domains with applications that are not used on a daily basis that appear to pose great initial targets of opportunity.  An example of this type of App would be within the eDiscovery market wtih Early Case Assessment (ECA) platforms.  Enterprises that may be reluctant to spend $250,000 per year for a ECA tool under the current legacy distribution model where the amount of usage is highly variable,  might be keen to enter into an agreement to have access to a virtual ECA solution with a pricing schedule that only charges them when they use the system.   I am not sure that the legacy ECA tool vendors are going to be pleased with this new paradigm (See above).  But, its the direction that the market is headed and therefore they had better start to make adjustments in their delivery models and also had better prepare their stockholders for the changes in the revenue stream.

SummaryIt only took comsumers a fews years to embrace the iPhone and Android App Store model and download almost 30 billion applications from the cloud.  As I always say, the train has left the station on how users want their apps served up.  So, now its just a matter of how long it takes the enterprise software vendors and the Cloud Service Providers to get their collective acts together and offer the same delivery paradigm for enterprise Apps.




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Monday, December 26, 2011

Information Governance and eDiscovery Trends for 2012

2011 has been a transitionary year for information governance and eDiscovery.  Enterprises and governments worldwide have had to come to grips with the sudden acceleration of the use of social media, cloud computing, mobile devices and the resulting explosion in the volume of Electronically Stored Information (ESI).

Some are predicting the end of email in favor ot texting, Twitter and other social media electronic communications.  There are over 100 million users on Twitter each day with 35% utilizing a mobile device.  Facebook now has over 800 million users with 74% outside the United States and 350 million on mobile devices.  There are also over 100 million LinkedIn users worldwide as business social media and the assocication collaboration and communications is now required as a fundamental marketing tool for any serious business player.  Click Here for a more detailed graphic overview of the the growth of social media from the Search Engine Journal.

In addition to social meida, the fundamental infrastructure matured in 2011 to support more serious cloud computing.  Enterprises worldwide began to realize the dramatic cost benefits and potential business benefits of cloud computing.  As a result they gave serious consideration to private cloud implementations and are becoming more comfortable with moving some ESI to public Cloud Service Providers (CSPs) such as Amazon and Rackspace.  Microsoft launched Office360 to enable users to access the Microsoft Office Suite of products as Software-as-a-Service (SaaS) removing the expensive and time consuming software update dance that we all dread.  And, late in 2010, Apple released the iCloud platform for consumer cloud storage and set the stage for literally millions of iPhone, iTouch and Mac users to begin storing their pictures and other personal data in the cloud.

For anyone involved in the world of Information Technology (IT) whether as a user or a technologist, 2011 was definitely an exciting year.  For those of us in the information governance and eDiscovery business, 2011 marked a turning point, both literally and conceptually, for the monitoring, indentification, collection, processing, review and production of electronic evidence.

Is it no longer just an interesting discussion at the local pub to talk about the eventuality of social media as a source of evidence.  There were already close to 1,000 cases in 2011 where the judge issued a written opinion that mentioned social media. Likewise, information governance and eDiscovery in the cloud is longer just an interesting breakout session at tradehows to fill up your 'dance card".  Harvesting ESI from the cloud for the purpose of eDiscovery was a real issue in 2011 and therefore anyone that is serious about eDiscovery from a process, legal and technology standpoint, had better start to pay attention.

Given all of this (and more that I have not even mentioned), 2012 is going to be a banner year for changes in information governance and eDiscovery.  Following are my predictions:

Information Governance and eDiscovery Will Move to the Cloud
As more and more ESI moves to the cloud, the requirement to harvest this ESI "from the cloud" will also continue to grow.  However, there will be a tremendous amount of confusion in regards to exactly what information governance and eDiscovery in the cloud means.  Most, if not all, of the seroius technology vendors will announce that they are cloud ready or work in the cloud.  However, in most cases, this will mean that they are using the same old legacy technology and harvesting data "from the cloud" and processing it the same old way they have been processing ESI and paper for years.  Some of these vendors will have their own data centers and offer up information governance and eDiscovery as as Service.   However, this is nothing new.  The real change that we will witness in 2012 will be virtual technology (not hardware based) that enables users to move information governance and eDiscovery solutions/platforms to the cloud ESI and collects it and processes it in the cloud where it resides.  Physical location will no longer be an issue.  Collection and moving massive amounts of data will no longer be an issue.  The salability of hardward solutions will no longer be an issue.  Staging information governance and eDiscovery respositories in third party service provider data centers will no longer be required.

Enterprises will be able to move virtual information governance and eDiscovery solutions around their networks and private clouds as required to collect and process ESI where it resides. Cloud Service Providers (CSPs) will provide information governance and eDiscovery solutions as part of their standard IaaS and PaaS technology stacks.   Early Case Assessment (ECA) is going to take on a whole new meaning.  This approach is a major paradigm shift in the entire concept of how information governance and eDiscovery should work.  2012 is going to be an exciting year for information governance and eDiscovery in the cloud.

Semantic Search will Go Mainstream
The mystical world of semantic search and natural language processing technology will finally go mainstream in 2012.  New Information governance and eDiscovery technology vendors will emerge that are utilizing this technology as the foundation of their offerings or have seamlessly integrated this technology into their platforms.  Litigators will begin to understand the value of semantic search, courts will begin to accept the results and users will begin to demand its use.  Before the end of 2012, the industry may even recognize the term "Lucene".

Predictive Coding will Go Mainstream
Just like the mystical world of semantic search and natural language processing technology, Predictive Coding will also go mainstream in 2012.  New Information governance and eDiscovery technology vendors will emerge that have seamless integrated this technology into their platforms.  Litigators will begin to understand the value of Predictive Coding, courts will begin to accept the results and users will begin to demand its use.  Offshore coding will become less attractive as Predictive Coding will enable all but the very detailed review and tagging to be done automatically.

Informationn Governance and eDiscovery for Social Media Will be Required
Pushed by the ethical requirements for litigators to understand and utilize eDiscovery for social media and the practical requirements to ensure that all pertinent ESI is being collected and submitted, there will be a  major move by the courts and litigators in 2012 to ensure that social media evidence is being collected and submitted with an appropriate chain of custody and with access to metadata to ensure the validity of the evidence.  And, as a results, legacy ECA vendors will social media file types to their bag of tricks and numerous new Discovery tools for social media will be released in 2012.

End-to-End Information Governance and eDiscovery Solutions
As Early Case Assessemnt (ECA) vendors expand their product lines "right" into document review and case management and as document review platform expand their product lines "left" into ECA, the market is going to have a choice of more end-to-end information governance and eDiscovery solutions.  In addition, we will see the integration of data mapping, legal hold, semantic search, predictive coding, project management, workflow management and case management into these end-to-end solutions.

Litigator Will Become More Technology Savy
Out of both practical necessity and statute ordered requirements, litigators will become more technology savvy in 2012.  The days of the hands-off, don't bother me with the technical details for eDiscovery litigator are quickly coming to a close. 

Information Governance and eDiscovery Pricing will Drop
The move to the cloud along with easily scalable virtual solutions offered up as Software-as-a-Service (SaaS) will enable a dramatic price decrease for information governance and eDiscovery in 2012.

eDiscovery will become a subset of Information Governance
As I have predicted in previous years, as eDiscovery moves to the enterprise, eDiscovery will become a subset of Information Governance in 2012.


In conclusion, 2012 is going to be a very exciting year in information governance and eDiscovery.  Enjoy the rest of 2011 and strap yourself in for a wild ride in 2012.



 




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