ediscovery Solutions -- Market Quadrant 2010

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1 THE RADICATI GROUP, INC. The Radicati Group, Inc Embarcadero Road, Ste. 206 Palo Alto, CA Phone: (650) Fax: (650) ediscovery Solutions -- Market Quadrant An Analysis of the Market for ediscovery market, Revealing Top Players, Mature Players, Specialists and Trail Blazers. November 2010 Masha Khmartseva Senior Analyst Radicati Market Quadrant SM is copyrighted November 2010 by The Radicati Group, Inc. Reproduction in whole or in part is prohibited without expressed written permission of the Radicati Group. Vendors and products depicted in Radicati Market Quadrants SM should not be considered an endorsement, but rather a measure of The Radicati Group s opinion, based on product reviews, primary research studies, vendor interviews, historical data, and other metrics. The Radicati Group intends its Market Quadrants to be one of many information sources that readers use to form opinions and make decisions. Radicati Market Quadrants SM are time sensitive, designed to depict the landscape of a particular market at a given point in time. The Radicati Group disclaims all warranties as to the accuracy or completeness of such information. The Radicati Group shall have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof.

2 TABLE OF CONTENTS RADICATI MARKET QUADRANTS EXPLAINED... 3 MARKET SEGMENTATION... 5 EVALUATION CRITERIA... 6 MARKET QUADRANT EDISCOVERY... 8 KEY MARKET QUADRANT TRENDS...9 VENDOR ANALYSIS TOP PLAYERS...12 TRAIL BLAZERS...22 SPECIALISTS...25 MATURE PLAYERS...29 =============================================================== Please note that this report comes with a 1-5 user license. If you wish to distribute the report to more than 5 individuals, you will need to purchase an internal site license for an additional fee. Please contact us at if you wish to purchase a site license. Companies are never permitted to post reports on their external web sites or distribute by other means outside of their organization without explicit written prior consent from The Radicati Group, Inc. If you post this report on your external website or release it to anyone outside of your company without permission, you and your company will be liable for damages. Please contact us with any questions about our policies. =============================================================== Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 2

3 RADICATI MARKET QUADRANTS EXPLAINED Radicati Market Quadrants are designed to illustrate how individual vendors fit within specific technology markets at any given point in time. All Radicati Market Quadrants are composed of four sections, as shown in the example quadrant (Figure 1). 1. Specialists This group is made up of two types of companies: a. Emerging players that are still very new to the industry and have not yet built up much of an installed base. These companies are still developing their strategy and technology. b. Established vendors that offer a niche product. 2. Trail Blazers These vendors offer cutting edge technology, but have not yet built up a large customer base. With effective marketing and better awareness, these companies hold the power to dethrone the current market leaders. Trail blazers often shape the future of technology with their innovations and new products designs. 3. Top Players These are the current leaders of the market, with products that have built up large customer bases. Vendors don t become top players overnight. Most of the companies in this quadrant were first specialists or trail blazers (some were both). As companies reach this stage, they must fight complacency and continue product innovation, or else they ll be replaced by the next generation of trail blazers. 4. Mature Players These vendors have large, mature installed bases of customers, but no longer set the pace for the rest of the industry. These vendors are no longer considered movers and shakers like they once were. a. In some cases, this is by design. If a vendor has made a strategic decision to move in a new direction, it may slow development on one product line and start another. b. In other cases, a vendor may simply become complacent as a top vendor and be Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 3

4 Low Market Share High ediscovery - Market Quadrant 2010 out-developed by hungrier trail blazers and other top players. c. Companies in this stage either find new life and revive their R&D, moving back into the top players segment, or else they slowly fade away as legacy technology. Figure 1, below, shows a sample Radicati Market Quadrant. As a vendor continues to develop its product, it will move horizontally along the x axis. As market share changes, vendors move vertically along the y axis. It is common for vendors to move between quadrants over the life of a product, as their products improve and market requirements evolve. Mature Players Radicati Market Quadrant Top Players Company L Company Z Company Y Company J Company H Company D Company B Company C Company A Specialists Low Functionality Company F Company G Company E Trail Blazers Figure 1: Sample Radicati Market Quadrant High Functionality is rated from 1 to 10, with 10 being the highest, and 1 the lowest. Market Share is also rated from 1 to 10, according to the company s ranking in our latest annual reports, based on its user Installed Base (e.g. the company with the largest installed base market share is number 1, the one with the second largest installed base market share is number 2, etc.). Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 4

5 MARKET SEGMENTATION This edition of Radicati Market Quadrants covers the ediscovery market. ediscovery solutions enable organizations to identify, collect, analyze, process, and present data stored in various corporate repositories. The data may be collected in response to lawsuits, internal investigations, or regulatory compliance requests. Leading ediscovery vendors and service providers include: Anacomp, Autonomy, CaseCentral, Clearwell, EMC, Guidance Software, Recommind, StoredIQ, Stratify, Symantec, and others. ediscovery solutions can be used for: o On-Going Monitoring Deployed by organizations that either operate in highly litigious environments and always have a number of lawsuits to respond to, or organizations that are interested in monitoring user communications as a proactive measure. o Individual Cases Deployed by organizations that need to respond to a single lawsuit at a time. ediscovery solutions are deployed by: o Organizations (legal department) to enable them to: Process data for a lawsuit. The data can be processed by the internal department, or the workload can be shared between the internal department and an outside law firm(s). Supervise user adherence to various internal and government regulations. The data is periodically sampled to reveal potential policy violations. The vast majority of these solutions are focused on messages only. o Law Firms to enable them to process data for a lawsuit. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 5

6 EVALUATION CRITERIA Vendors are positioned in the quadrant, according to two criteria: Market Share, and Functionality. Market Share is based on the projected revenue published in our ediscovery Market, report. The vendor with the largest projected revenue has a market share of 1, the one with the second largest projected revenue has a market share of 2, etc. Vendors with larger market shares are positioned either in Top Player or Mature quadrants. Vendors with smaller market shares, are positioned either in the Trail Blazer, or Specialist quadrants. Functionality we assess each vendor s solution based on a number of key features that they offer out of the box. These capabilities do not necessarily have to be the vendor s own original technology, but they should be pre-integrated and available for deployment when the solution is purchased. In order for an ediscovery vendor to be on the right side of the quadrant (Top Player or Trail Blazer), their solution should have the following capabilities: Data Identification/Collection analysis of data before the collection includes identifying the sources, custodians, estimated volume, and potential budget needed for collection/processing. Data can be collected from multiple sources, including servers and archives, networked applications, personal computers, etc. Data Processing, Review and Analysis review of the collected data with built-in workflow capabilities and a number of other automated options. Additional capabilities/features taken into consideration include: Ease of Use; Ease of Deployment and Management; Ease of Access/Multiple Team Accommodation; Ability to Manage Multiple Cases Simultaneously; Multi-Lingual Support; Ability to Deploy the Solution in Multiple Form Factors; Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 6

7 Other Unique Features and Capabilities. Note: On occasion, we may put a player on the right side of the quadrant by giving them a higher than typical Functionality Score, even if they are missing one or two of the features mentioned above, if we feel that the other aspects of their solution are very unique and innovative. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 7

8 Market Share ediscovery - Market Quadrant 2010 MARKET QUADRANT EDISCOVERY High Mature Players Radicati Market Quadrant Symantec EMC Anacomp Guidance Stratify Clearwell CaseCentral Top Players Autonomy Recommind StoredIQ Low Specialists Trail Blazers Low Functionality Figure 2: ediscovery Market Quadrant, 2010 High Radicati Market Quadrant is copyrighted November 2010 by The Radicati Group, Inc. Reproduction in whole or in part is prohibited without expressed written permission of the Radicati Group. Vendors and products depicted in Radicati Market Quadrants should not be considered an endorsement, but rather a measure of The Radicati Group s opinion, based on product reviews, primary research studies, vendor interviews, historical data, and other metrics. The Radicati Group intends its Market Quadrants to be one of many information sources that readers use to form opinions and make decisions. Radicati Market Quadrants are time sensitive, designed to depict the landscape of a particular market at a given point in time. The Radicati Group disclaims all warranties as to the accuracy or completeness of such information. The Radicati Group shall have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 8

9 KEY MARKET QUADRANT TRENDS The Top Players in the ediscovery market today are Autonomy, Clearwell, and CaseCentral. o Autonomy offers one of the most comprehensive suites of ediscovery solutions, designed for organizations and law firms. Its solutions cover the whole spectrum of the EDRM model, from initial data identification and collection to data production. The solutions range from products and services to monitor daily activities of users to ensure compliance with internal regulations, to solutions designed for processing individual cases. Autonomy s ediscovery solutions can analyze content from over 1,000 sources (including voice and video files), in over 120 languages. o Clearwell provides a wide range of ediscovery capabilities for enterprises, government agencies and law firms, ranging from the initial data identification and collection, through processing, analysis and review, to data production. Clearwell ediscovery platform can be used either for on-going monitoring of potential risks, or for processing individual cases. o CaseCentral offers an integrated, cloud-based software platform and applications for early case assessment, processing, review, analysis and production for corporations and law firms. CaseCentral provides a flexible service, enabling organizations and law firms to use it on an on-going basis, or to deploy it only for a single case. Since the solution is offered as a service, it is easy to deploy, with predictable expenses. The Trail Blazers quadrant includes Recommind. o Recommind offers ediscovery, management and enterprise search software solutions for organizations and law firms. The ediscovery solutions offer a wide range of capabilities, from data identification and collection to data review and analysis. Recommind is favored by both organizations and law firms. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 9

10 To make the deployment process easier for its customers, the ediscovery solutions are offered as software, or hosted services. The Specialists quadrant includes StoredIQ and Stratify (Iron Mountain). Each of these companies offers interesting features and capabilities, however, they do not offer sufficiently innovative features to be considered a Trail Blazer, or have a large enough installed base to place in the Top Player quadrant. o StoredIQ offers a comprehensive early case assessment solution, enabling organizations to manage, identify, collect, process, and review data on an ongoing basis. While StoredIQ provides a strong solution, it specializes in data identification and collection only. o Stratify (Iron Mountain) is mostly focused on early case assessment capabilities, including data identification and collection. Stratify solutions can be deployed as appliances or hosted services. Stratify solutions are available for deployment by law firms and legal departments of large organizations. Symantec, EMC, Guidance Software, and Anacomp are Mature Players in this market. o Symantec offers a diverse portfolio of solutions to satisfy the legal requirements of companies in all industries. The ediscovery solutions offered are extremely user-friendly they are easy to deploy, manage, and work with for users with little or no IT background. While a great tool for Symantec s customers with a long set of features, when compared to other top pure-play ediscovery vendors, Symantec s solutions do not offer much in terms of unique or special features, besides the seamless integration with Symantec s Enterprise Vault. o EMC is a newcomer to the high-end ediscovery market. It has been an active participant only since 2009, when it acquired pure-play ediscovery vendor Kazeon. Kazeon s biggest strength is its advanced data identification and collection capabilities. The data can be identified and analyzed in the wild before the actual collection is initiated. Once the data is properly identified, the Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 10

11 solution can collect it with minimal disruption to end users, without the need to deploy agents on end points. o Guidance Software has been in business for over 10 years, and is a known name in the ediscovery market. Rather than cover the whole range of the EDRM model, it specializes in early case assessment and data collection, leaving the processing and post analysis to other vendors. o Anacomp offers a spectrum of services from early case assessment to production. While it offers a variety of features to choose from, it is a custom-built solution, which means that it takes time to get it up and running, and it is not inexpensive. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 11

12 VENDOR ANALYSIS TOP PLAYERS Autonomy 1 Market Plaza Spear Tower, Suite 1900 San Francisco, CA Autonomy s infrastructure software powers a broad range of enterprise applications, including information access technology, BI, CRM, KM, Call Center solutions, rich media management, information risk management solutions and security applications. Autonomy s core archiving technology came from the 2007 acquisition of ZANTAZ. Founded in 1996, ZANTAZ was one of the pioneers of the archiving market. It was one of the first companies to go beyond simple archiving, building a comprehensive suite of solutions for compliance with government regulations, internal policies, and legal discovery investigations. With the ZANTAZ acquisition, Autonomy gained one of the top spots in the archiving and ediscovery markets. Today, Autonomy offers a full spectrum of ediscovery solutions, from the initial data identification and collection, to data production. The ediscovery solutions are available as software, services, hybrid offerings, or appliances. They can be used on an on-going, as well as case-by-case basis by organizations and law firms. Autonomy's Intelligent Data Operating Layer (IDOL) is the foundation for all its solutions, including archiving and ediscovery products and services. IDOL helps to analyze and process unstructured, semi-structured and structured information from multiple repositories of text, voice and video from a single platform. After the data is indexed, it is categorized, linked, analyzed and presented in the form that users request. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 12

13 ediscovery solutions include: Autonomy Legal Hold enables the automated notification, preservation and collection of enterprise data related to legal cases with a built-in comprehensive workflow process. Investigator and Early Case Assessment enables authorized users to search enterprise-wide for information relevant to a given litigation event using conceptual analytics, clustering and social mapping against high volumes of content. Introspect Review and Production is a discovery review solution for complex litigation and compliance projects. Introspect can collect, review, and analyze electronic files, scanned paper documents, transcripts, audio, video, and others either for one or thousands of cases. It can be deployed as either an on-premises product, or as a hosted service. Introspect EDD enables organizations to manage a variety of documents (electronic files, audio/video, scanned documents, and transcripts) in their native formats, as well as pre-filtering and culling based on terms, concepts or patterns in the information. Autonomy Supervisor enables authorized users to monitor corporate electronic communications by using sampling (random and lexicon-based), examining communications of individual users or groups of users. Autonomy Supervisor automatically scans all inbound, outbound, and internal messages, and flags those that should be reviewed. In 2010, Autonomy introduced a new self-learning module, Autonomy Meaningful Based Coding for ediscovery. At the beginning of the review process, the module detects document processing and coding patterns of each legal team. Once the pattern is established, the module then can either automatically code, or make suggestions on how to prioritize, process, and code the remainder of the documents. With the help of this new module, organizations can cut the document review time, ensure more consistency in the way the documents are reviewed and coded, and reduce their overall costs. The module can work with over 120 languages and 1,000 file types. Autonomy s ediscovery solutions are available as either software, hosted services, or appliances. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 13

14 FUNCTIONALITY: 8 MARKET SHARE: 1 KEY STRENGTHS: Autonomy offers a complete range of ediscovery solutions from data identification and collection to data production. The solutions are offered for organizations and law firms to be used on an on-going, as well as case-by-case basis. The ediscovery solutions can work with over 1,000 data types in over 120 languages. The brand new Autonomy Meaningful Based Coding for ediscovery enables to further automate the initial document review and coding process. Autonomy s ediscovery solutions are available as either software, hosted services, or appliances. WEAKNESSES: The solutions are often too complex to be deployed and managed easily. The purchase, deployment, and subsequent management of the solution tends to be fairly expensive. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 14

15 Clearwell Systems 441 Logue Ave. Mountain View, CA Founded in 2004, Clearwell Systems has quickly grown to become a well-known name in the ediscovery market. The Clearwell E-Discovery Platform provides a wide range of ediscovery capabilities for enterprises, government agencies and law firms, ranging from the initial data identification and collection, through processing, analysis and review, to data production. The Clearwell E-Discovery Platform is available as a physical or virtual appliance, either directly or as a hosted service (offered through partners). The Clearwell E-Discovery Platform is an appliance that enables identification, collection, processing, analysis, review, and production of electronic data. It comes with three modules: Identification and Collection Processing and Analysis Review and Production The product also provides streamlined case management and reporting capabilities that span all ediscovery phases. The appliance can work with over 500 document types, displaying documents in their native format. The Clearwell E-Discovery Platform allows management of multiple cases via a single administrative interface, with multiple reviewers and administrators for each case. The appliance can work with over 500 document types, displaying documents in their native format. Each solution allows management of multiple cases via a single administrative interface, with multiple reviewers and administrators for each case. The raw data to be analyzed can be collected from multiple sources, including client machines, archives, file servers, and hosted applications. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 15

16 At the initial stage, all duplicate files are eliminated, often reducing the workload up to 40%. To identify file duplicates, the solution uses the content of the documents, rather than titles only, enabling to eliminate copies of documents with the same content, but different titles. Before reviewers begin working with documents, Clearwell s early case assessment (ECA) capabilities provide users an estimate of the work-hours involved and other expenses that would be required to go through and analyze the data for each particular case. Depending on the case, this enables organizations to make a decision whether or not it is worth their effort to analyze the content, or simply settle the case. For reviewers, the GUI is user-friendly and intuitive, enabling authorized users with no IT background to work with the system. The full Unicode compliance enables reviewers to search through, retrieve, and work with documents in multiple languages. The solution comes with a number of auto-filters, and supports multiple search methodologies, including multi-keyword, Boolean, wildcard, fuzzy, and proximity search. It also offers search reports that provide summary and detailed statistics for each search query. In addition, natural language algorithms enable reviewers to uncover project code names and words that users may employ that a typical keyword search would not pick up. The product provides a Discussion Threading feature, which groups relevant messages together based on the established parameters to recreate the entire discussion. The reviewers are able to tag documents, redact them if necessary, and add notes and reason codes to the documents reviewed. Another offering, Find Similar, provides an intuitive way for users to easily identify and group e- mails, attachments, and loose files with similar content to the document being reviewed. This helps increase the effectiveness of ECA and further enhance reviewer productivity. After the analysis and review is complete, the results can be produced and exported in many popular formats, such as native, TIFF, and PDF. In comparison with manual analysis and document review, Clearwell Systems can reduce the overall cost up to 80%. For a typical deployment, the solution can be up and running in under 30 minutes. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 16

17 In addition to the appliance, Clearwell Systems also offers a hosted version of its solution in partnership with service providers. Some of the latest improvements, available with version 6.0, include the following: Identification and Collection module offers a network collector for a variety of sources, including Microsoft Exchange, SharePoint, Lotus Domino, file shares, personal computers, and hosted applications. Authorized users can set up a schedule for data collection, specifying, if needed, to collect only new or modified content. Clearwell Review Module automatically groups and presents similar documents together for review, offers an auto-resume option for reviewers, auto-batching for easier document organization, better management of review folders, and other features. FUNCTIONALITY: 7 MARKET SHARE: 6 KEY STRENGTHS: Clearwell offers a full spectrum of ediscovery features, from data identification/collection to production. Clearwell ediscovery platform is targeted at both law firms and enterprises, and can be used either for on-going, or single cases. By using algorithms, the system can uncover project codenames that can t be picked up via typical key work searches. The work of each individual reviewer and the overall progress can be analyzed at any time. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 17

18 WEAKNESSES: Clearwell s pricing scheme, based on the amount of data processed in addition to the price of the solution, makes it difficult to estimate costs, particularly if an organization is trying to budget its expenditures months in advance. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 18

19 CaseCentral 50 California Street, Suite 200 San Francisco, California Founded in 1994, CaseCentral offers an integrated, cloud-based software platform and applications for early case assessment, processing, review, analysis and production for corporations and law firms. CaseCentral ediscovery Platform enables advanced review, analysis, and processing of documents on a case by case basis by multiple legal teams. The platform accommodates a large variety of documents from various sources, including scanned hardcopies. The search capabilities offered include Boolean, concept, fuzzy, proximity and phonetic searches. The documents can be reviewed in their native format, or converted to a single standard. The system enables organizations to eliminate duplicates, as well as combine documents with similar content, reducing the overall workload of reviewers. The ediscovery dashboard provides real-time insight into ediscovery costs, trends and efficiencies to measure cost (per document, per matter, per law firm), efficiency (review time, by firm, by reviewer) and effectiveness (review quality, by firm, by reviewer) for one or multiple matters, enabling quantitative ediscovery measurement for budget forecasting, resource governance, risk and cost oversight, as well as managing matter timelines and production deadlines. The ediscovery platform is hosted in a private cloud, offering advanced security features to safeguard the clients data. The latest version 4.1 added a number of new features: Additional self-service capabilities - automatic creation of complex folders for large data sets; on-demand conversion of large numbers of native files to images with no conversion costs; ability to modify templates and apply changes to cases in real time. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 19

20 Additional user-friendly features. Additional security features. CaseCentral also announced the availability of its ediscovery Connector for Symantec Enterprise Vault Discovery Accelerator. The integration between Symantec Enterprise Vault Discovery Accelerator and the CaseCentral ediscovery Platform creates a single solution for Identification, Collection, Processing, Analysis, Review and Production. Early Case Assessment enables organizations to quickly determine the scope of the collected data before beginning the review process. It enables to determine the types, volumes, and sources of data collected, and to determine the time and monetary expenses needed to process it. FUNCTIONALITY: 6 MARKET SHARE: 7 KEY STRENGTHS: The service is available for on-going, or single case situations. Advanced search capabilities, including sophisticated concept search. The solution can evaluate and measure the performance of the reviewers. Documents can be viewed in their native format, without the need to convert them to a common file. New pricing subscription model offers a flat rate with no per GB processing fees. Hosting in a private cloud increases data security. WEAKNESSES: No on-premises solution. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 20

21 The data collection/identification is offered through partners. No true Unicode capability is currently available. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 21

22 TRAIL BLAZERS Recommind 170 Columbus Ave., Suite 310 San Francisco, CA Founded in 2000, Recommind offers ediscovery, management and enterprise search software solutions for organizations and law firms. The ediscovery solutions offer a wide range of capabilities, from data identification and collection to data review and analysis. Axcelerate ECA & Collection offers early case assessment capabilities, enabling review, sampling, and reduction of data before the collection phase, to enable identification of relevant documents and files. The collection phase offers data collection from multiple enterprise locations, including servers, files servers, desktops and laptops, document management systems (such as Microsoft SharePoint, and others). The data needed is copied to a single repository, rather than moved from its original location. The data can be collected on an on-going basis, or whenever needed for a specific case, as well as managed across multiple cases without duplication. Axcelerate Review & Analysis automatically processes, organizes and categorizes all documents by responsiveness, privilege, issue relation, and priority before the document review process even begins. The Predictive Analytics engine uses a combination of keywords, Boolean and concept searches to automatically categorize and prioritize collected documents. Predictive Coding is a computer-assisted workflow used to automatically code all documents related to a user, document, concept, or other variables. Axcelerate Review & Analysis is able to process content in multiple languages, including double-byte characters. Axcelerate On Demand provides the automated capabilities of Axcelerate Review & Analysis in a hosted solution. Copyright November 2010, The Radicati Group, Inc. Reproduction Prohibited 22

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