ediscovery Market Quadrant 2014

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1 . The Radicati Group, Inc. Palo Alto, CA Phone: (650) THE RADICATI GROUP, INC. ediscovery Market Quadrant An Analysis of the Market for ediscovery, Revealing Top Players, Trail Blazers, Specialists and Mature Players. November 2014 Radicati Market Quadrant SM is copyrighted November 2014 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... 8 MARKET QUADRANT - EDISCOVERY KEY MARKET QUADRANT TRENDS EDISCOVERY - VENDOR ANALYSIS TOP PLAYERS TRAIL BLAZERS SPECIALISTS =============================================================== 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 2014 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 product designs. 3. Top Players These are the current leaders of the market, with products that have built up large customer bases. Vendors do not 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 will be replaced by the next generation of trail blazers. 4. Mature Player 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 as 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. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 3

4 b. In other cases, a vendor may simply become complacent as a top vendor and be 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. High Mature Players Radicati Market Quadrant Company Z Top Players Company L Market Share Company Y Company J Company H Low 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 assigned 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 2014 The Radicati Group, Inc. Reproduction Prohibited 4

5 MARKET SEGMENTATION This edition of Radicati Market Quadrants covers the ediscovery market, which is defined as follows: ediscovery Solutions include data analysis solutions, with advanced electronic data identification, collection, analysis, and presentation tools. Leading ediscovery vendors and service providers in this segment include: AccessData, Catalyst, EMC, Exterro, FTI Technology, Guidance Software, HP, kcura, KPMG, Kroll Ontrack, Recommind, Symantec, UBIC and others. Not all vendors listed above cover all phases of the EDRM, in particular some focus mostly on left-side functions (e.g. identification, collection, preservation) whereas others focus mostly on right-hand functions (e.g. processing, review, analysis, production and presentation). Increasingly, however, vendors are adding support for all stages of the EDRM. Many information archiving vendors, Enterprise Content Management (ECM), and other types of data management vendors also offer ediscovery modules or add-on components to their solutions and claiming that they support ediscovery. These vendors are not included in this report as they typically cover only the very early stages of the EDRM and the functionality they provide is really meant to ease access to their own data repositories for later transfer into full-fledged ediscovery solutions. ediscovery solutions can be acquired from: o Pure-play Vendors These are vendors that focus strictly on satisfying the EDRM. Some pure-play ediscovery vendors target specific phases of the EDRM, while other vendors have solutions that cover the EDRM in its entirety. These vendors typically target mainly legal firms, or the legal departments within corporations. o Enterprise Software Vendors ediscovery solutions may be offered as an add-on component or functionality by vendors that offer information governance product portfolios. The information governance solutions that Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 5

6 most often include ediscovery are: information archiving, Enterprise Content Management (ECM), and records management solutions. The majority of ediscovery solutions offered by enterprise software vendors are targeted at corporate organizations and their internal legal departments. o Hosting Providers an increasing number of hosting providers integrate ediscovery services from multiple vendors to offer a complete end-to-end ediscovery solution. These providers will typically target both legal firms and corporate in-house legal teams. ediscovery solutions are available in different form factors as follows: o On-premises Software or Appliance These are solutions deployed on-site and managed by a corporate organization. This deployment model is usually found among larger sized organizations that have the resources to setup and manage an ediscovery solution in-house. o Cloud-based Solutions SaaS solutions are growing in popularity across organizations of all sizes, as they provide predictable costs, require no upfront investments, minimal management overhead and can be easily replaced by another solution. Increasingly vendors in this market are experimenting with offering different kinds of cloud based solutions, some offer mainly storage, others include access to online software, and yet others include bundled professional services. o Hybrid Offerings many ediscovery vendors today are offering hybrid deployments that allow corporate organizations to complete different stages of the EDRM in-house or in the cloud. For instance, it is quite typical for a customer to conduct the ESI collection and processing stages in-house onpremises, and then move the data to a cloud-based review platform where it can be more easily worked on by outside counsel. Note: This Market Quadrant only covers the sale of ediscovery software and technology. 1. The ediscovery market has a large professional services and legal consulting component which is not included in this Market Quadrant. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 6

7 2. Also, this Market Quadrant does not include ediscovery add-on solutions offered in conjunction with information archiving, or other repositories and where the ediscovery component is aimed primarily at dealing with the data stored in those specific vendor repositories. Figure 1, shows the worldwide ediscovery revenue forecast from 2014 to The ediscovery market is expected to grow from over $1.6 billion in 2014 to over $3.8 billion in 2018, representing an average annual growth rate of over 24% over the next four years. ediscovery - Revenue Forecast, $4,500 $4,000 $3,813 $3,500 $3,000 $2,500 $2,000 $1,617 $1,908 $2,328 $2,933 $1,500 $1,000 $500 $ Figure 2: Worldwide ediscovery Revenue Forecast, Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 7

8 EVALUATION CRITERIA ediscovery vendors are positioned in the quadrant, according to two criteria: Market Share and Functionality. Market Share is based on the 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 a smaller market share, 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: Standard ESI Support Standard ESI support includes archived s, IM messages, and documents from desktops, laptops, network shares, Enterprise Content Management (ECM) and other data repositories. Advanced ESI Support More vendors are now offering advanced ESI support for social media content, audio, cloud based platforms such as Microsoft SharePoint, Google Docs, Microsoft Office 365, and more. Search Criteria Flexible specification of keywords, phrases, dates, users, and other search criteria that can be easily customized by the customer. Legal Hold Relevant or specific data can be placed on legal hold and preserved for litigation. Integration with Active Directory or other user databases for custodian mapping. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 8

9 Early Case Assessment (ECA) Technology Assisted Review (TAR) Potential Cost Estimates Deduplication Data Categorization Data Presentation Data Management Data Export Added Notes/Explanations Ability to analyze collected and preserved data prior to processing and review. Legal teams can access data sets and determine the potential time and costs that would be required in order to move forward with a particular matter. Predictive coding technology which speeds up document review based on a set of acceptance criteria. Based on the information provided, TAR software is able to review the remaining data set, increasing the speed of the review process and reducing costs. Relevant data can be analyzed to gain an understanding of who the custodians are, how large the volume of data to be collected is, how long it would take to collect and process it, and what would be the potential expense of such collection. Deduplication is a data culling technique used to minimize data and provide only relevant content. Duplicate or similar documents are automatically removed and/or combined into similar documents. Deduplication dramatically reduces the volume of data that needs to be reviewed. Potentially non-compliant documents are automatically assigned to individual reviewers based on keywords, concepts and other customizable criteria. The search results are usually highlighted for easier review. If many data types are archived together, the interface (preferably) should be able to present the data of each document in its native format, without converting it to a common file. Individual documents or clusters of documents can be open/closed, assigned to groups of documents and moved around on the computer screen with a drag and drop feature. Relevant data can be exported in its native format and converted to PDF or TIFF images A reviewer can add notes to any document. Solution Form Factor The solution is available as: on-premises software, cloud-based SaaS, or hybrid. Some vendors offer the ability to have parts of their ediscovery solution on-premises while other parts are cloud-based to facilitate attorney access and review. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 9

10 Professional Services Many vendors offer professional services and their own teams of legal experts. This is a value add for smaller companies involved in litigation but can also be important for larger customers dealing with complex cases. Vendors often bundle professional/legal services with their solution pricing. 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 2014 The Radicati Group, Inc. Reproduction Prohibited 10

11 Low Market Share High ediscovery - Market Quadrant 2014 MARKET QUADRANT - EDISCOVERY ediscovery Market Quadrant, 2014 Mature Players Top Players Symantec FTI Technology HP Kroll Ontrack kcura Guidance Software Recommind AccessData EMC Catalyst UBIC KPMG Exterro Specialists Trail Blazers Low Functionality High Figure 3: ediscovery Market Quadrant, 2014 Radicati Market Quadrant SM is copyrighted November 2014 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. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 11

12 KEY MARKET QUADRANT TRENDS Top Players in the ediscovery market are Symantec, FTI Technology, HP, Kroll Ontrack, kcura, Guidance Software and Recommind. o Symantec Symantec offers a complete ediscovery solution that covers the full spectrum of the EDRM as well as integrates with its own onpremises and cloud based information archiving solutions. o FTI Technology is well known for its Ringtail platform which features strong predictive coding, and a wide range of visualization tools that are essential for quick and efficient ediscovery. o HP has a strong ediscovery solution targeted at complex corporate scenarios which need to address all the key stages of the EDRM model. o Kroll Ontrack offers a new, cloud-based platform aimed at customers that require multi-case support and wish to benefit from the economies of scale of leveraging the same platform and processes repeatedly. o kcura was best known as a best-of-breed review platform among law firms. The vendor, however, has now added all other components of the EDRM and is actively targeting the corporate market. o Guidance Software covers all phases of the EDRM and focuses on corporate customers that want to bring end-to-end ediscovery in-house. o Recommind is a well-known innovator in ediscovery, and provides robust solutions that address of all key stages of the EDRM. The Trail Blazers quadrant includes AccessData, Catalyst, UBIC and Exterro. o AccessData is one of the earliest, well established vendors in the ediscovery space. The company recently announced that it will split into two separate companies, AccessData and Resolution1 Security, which will offer customers the ability to pick the level of EDRM coverage that best Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 12

13 fits their needs. o Catalyst offers a cloud-based approach that has resonated well with both corporate customers and legal firms. It offers one of the early technology assisted review (TAR) platforms to handle Asian languages. o UBIC offers a solid set of well-integrated solutions to cover the main phases of the EDRM. It has a focus on the Asian market and offers strong support for Asian languages. o Exterro is an established player in the ediscovery market, and offers an integrated platform specifically designed to address the needs of corporate enterprises that want to bring ediscovery in-house. The Specialists quadrant includes EMC and KPMG. o EMC offers a well-respected ediscovery solution focused on legal hold, ECA, and collection. o KPMG is a well-respected player in the ediscovery space and offers a robust and flexible platform which is further augmented with its Forensic practice. There are no Mature Players in this market at this time. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 13

14 EDISCOVERY - VENDOR ANALYSIS TOP PLAYERS SYMANTEC 350 Ellis Street Mountain View, CA Symantec provides a broad range of security, storage, and systems management solutions and services for consumers and businesses. Symantec s product portfolio covers ediscovery, archiving, security, and more. Symantec recently announced that the company is splitting in two, independent publicly traded companies: one will be focused on security, and the other will focus on information management. Symantec s ediscovery solution is the Symantec ediscovery Platform powered by Clearwell, which provides full coverage of the EDRM. The key features include: Legal Hold the Symantec ediscovery Platform has robust features for the legal hold process, including automated hold notices that can be scheduled to assure response from custodians, detailed reports on the status of notices, custodian surveys, and the ability to save these settings as templates for reuse, or future legal holds. Identification and Collection Symantec s solution allows investigators to identify data sources through an interactive data map and custodian manager. The Symantec ediscovery Platform supports collection from a wide set of sources, including hosted collaboration services (e.g. Microsoft SharePoint), as well as laptops, desktops, and other network shares or cloud-based applications. ESI can be filtered by keywords and metadata, is stored in a central location, and can be collected onto external hard drives or USB devices when a network connection is unavailable. The latest update includes audio search capabilities to meet new federal regulations. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 14

15 Processing, Search and Analysis pre-processing features provide summation and analytics of data collected before the analysis process; the processing supports a wide range of formats and languages. Search and analysis features include search preview, keyword search reports, concept search, advanced analytics and more. Review and Production the review process allows for linear review and Technology Assisted Review (TAR), as well as near-native document viewing, hit highlighting, decision tree tagging, near-duplicate identification, redaction capabilities and more. The Symantec ediscovery Platform produces documents in native formats, as well as PDF or TIFF formats. Packaging the Symantec ediscovery Platform is modularly packaged, allowing each of the components described in above to be purchased as an independent product to better meet an organization s needs. The Symantec ediscovery Platform also integrates with Symantec s information archiving solutions, Symantec Enterprise Vault and Symantec Enterprise Vault.cloud, for efficient collection, processing and analysis of archived content. Symantec Enterprise Vault.cloud, which is Symantec s cloud-based archiving solution, includes Symantec Enterprise Vault Discovery.cloud, which grants legal teams rolesbased, self-service access to archived information and a collaborative workflow. This functionality includes assigning reviewers with distinct privileges such as managing and editing matters, exporting ESI, adding notes and more. Symantec AdvisorMail is a cloud-based archiving solution designed to meet the compliance supervision needs of SEC and FINRA-registered organizations. Though not primarily an ediscovery product, it offers partial EDRM coverage and can help compliance personnel manage and review archived s and instant messages. FUNCTIONALITY: 9 MARKET SHARE: 1 Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 15

16 KEY STRENGTHS: Though the Symantec ediscovery Platform covers the entire EDRM, the platform strongest in the processing and analysis stages, including features such as preprocessing summary and analytics, predictive coding (TAR), and advanced concept search capabilities. For Enterprise Vault and Enterprie Vault.cloud customers, integration with the Symantec ediscovery Platform easily extends the coverage of these solutions by expanding the collection stage to include already existing and secured archives. The modular packaging of the Symantec ediscovery Platform makes it a highly versatile and flexible solution for customers with different needs. Symantec ediscovery Platform offers support for audio search, in compliance with newer federal regulations, a feature that few other vendors provide. WEAKNESSES: Though the Symantec ediscovery Platform can integrate with other archiving solutions, Symantec has focused on marketing and integration primarily with its own with Symantec Enterprise Vault information archiving solution. Symantec s ediscovery solution is considered somewhat more expensive than other competing solutions. FTI TECHNOLOGY 1101 K Street NW Suite B100 Washington, DC FTI Consulting provides a broad range of enterprise services, including: corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications, and ediscovery software and services. FTI Technology is the Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 16

17 ediscovery software and services arm of FTI Consulting. Ringtail, FTI Technology s ediscovery software provides case management, processing, document review and production functionality. Ringtail can be deployed on-premises, as a hosted or SaaS solution, or as and on-demand solution which includes hosting and professional services. The key features of Ringtail include: Integrated Processing Ringtail offers integrated workflow that can be customized to meet different project requirements. It offers easy to use dashboards, rich configuration options and support for more than 400 file types. Visual Document Review Ringtail s search and review capabilities include keyword search, concept clustering, and visual review. Documents that relate to a particular subject, topic, or theme can be quickly identified for review and coding based on their conceptual similarities, timelines, or communication patterns using Document Mapper. Visual Analytics leverages data and concept analysis to enable teams to navigate and make sense of large document collections. It delivers informationrich progress reports, trend analysis, and statistical samples of document sets to power case strategies. Production production and redaction tools provide a robust set of features that enable legal teams to produce relevant documents in an accurate and efficient manner. Documents can be produced in their native format, TIFF, PDF, or in a combination of these formats. Configurable permissions allow for secure productions down to the document level. FTI Technology added several new features with its latest release of Ringtail in August Key additions include: macro-to-micro analytics for drilling into conceptually similar documents, a simplified interface for advanced searches, and additional user experience enhancements. FTI Technology also offers a variety of additional professional services including: Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 17

18 Acuity managed review FTI s managed review offering encompasses legal review attorneys, software and workflow. Acuity seamlessly integrates with other FTI ediscovery services to provide comprehensive coverage of clients ediscovery needs and a single point of accountability. FTI Technology offers gigabyte or per document reviewed pricing model for Acuity. FTI Investigate FTI conducts forensically sound collections from the cloud, mobile devices, social media, structured data sources as well as foreign locations. FUNCTIONALITY: 7 MARKET SHARE: 2 KEY STRENGTHS: FTI Technology s ediscovery products are available as on-premises, or as a hosted SaaS solution, or on-demand which includes hosting and professional services. Ringtail s predictive coding is a differentiator due to its visualized training feature, which allows users to maximize the efficiency and accuracy of the Technology Assisted Review. The visual analytic tools and Ringtail s ability to visualize trends provide efficient identification of relevant documents. Legal professionals can gain quick insight into the accuracy of document sets through Ringtail s visual review tools. FTI Technology s volume-based or perpetual license pricing and its flexible deployment options make it more accessible to customers. FTI Technology s consulting services offer broad support for the ediscovery process that other vendors often lack. WEAKNESSES: It may not be clear to customers that FTI Technology s product portfolio provides complete EDRM coverage, as professional services must also be purchased for the collection and preservation phase. Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 18

19 Ringtail s advanced technology may seem too complex for some users needs. HP 3000 Hanover Street Palo Alto, CA HP provides software and hardware solutions for consumers and enterprises. Its product portfolio includes desktops, laptops, printers, networking and storage, mobile devices, and more. In 2011, HP acquired the unstructured information and analytics vendor, Autonomy, which is now part of HP Software s Big Data Solutions Business Unit. HP s Intelligent Data Operating Layer (IDOL) powers HP s Big Data solutions with its advanced pattern-matching and analytics technology. HP IDOL collects and stores data from a diverse set of data connectors where it is then indexed, optimized, and made available for analysis, retrieval, and management. HP IDOL supports hundreds of languages, relevant file types, and data source repositories. HP s ediscovery solution is a key component of their Information Governance portfolio, which comprises Enterprise Content Management (ECM), Information Archiving, and ediscovery. Solutions in the portfolio can be combined in a modular fashion to allow organizations to proactively prepare for litigation and achieve time and cost savings. HP s ediscovery solution is comprised of two key products: HP Legal Hold and HP ediscovery. HP Legal Hold - enables customers to identify, preserve and collect potentially relevant information. It provides an automated means for managing legal hold notifications and custodian interviews in a repeatable, defensible manner. It also provides a comprehensive solution for managing the release and disposition of data at the end of a matter. Key aspects of the product include: o Notification and interview management - allows customers to automate notification workflows and interviews ensuring defensibility by tracking Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 19

20 and documenting notifications, acknowledgements, and reminders. o Litigation lifecycle management - automatically tracks data throughout the litigation lifecycle: it provides an online collaboration and tracking environment that facilitates initiation of hold actions, tracking of results, review of activity, and reporting. o Matter management integration allows legal staff to relate collections and notices to a set of matters, interoperate with existing matter management systems, and allows content collected or preserved to be shared among all matters. o Preservation and collection is supported through forensically sound collection (copying native content and metadata) or, for certain repositories, in-place preservation (locking the content and metadata within its current repository). In place preservation is available for: On-premise HP repositories, such as HP Consolidated Archive or HP WorkSite; Third-party data repositories, such as Windows file shares or SharePoint; and Laptops and desktops (through the Desktop Legal Hold agent). HP Legal hold is an on-premise offering; however SaaS-based legal hold capabilities are available with certain HP archiving solutions. HP ediscovery - combines processing, Early Case Assessment, analysis, review (including Technology-Assisted Review), and production into a single solution. Some of its most prominent capabilities include: o Early Case Assessment - enables customers to gain insight into large volumes of data using advanced analytics such as automated concept clustering, communications mapping and multi-faceted filtering. The tools help customers identify common themes, spheres of influence, unknown custodians and unusual behaviour in a simple, streamlined process. ECA also helps customers determine collection parameters and Copyright November 2014 The Radicati Group, Inc. Reproduction Prohibited 20

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