Vendors Respond to New E-Mail Active-Archiving Market Requirements

Market Analysis Vendors Respond to New E-Mail Active-Archiving Market Requirements Abstract: Growing e-mail data stores and enforcement of legislation that includes retention of e- mail records are driving enterprises to purchase e-mail active-archiving products from a small set of new vendors and products. By Carolyn DiCenzo and David Mario Smith Strategic Market Statement Through 2006, the overall electronic archiving market will be dominated by e-mail active-archiving products. Publication Date:26 November 2003

2 Vendors Respond to New E-Mail Active-Archiving Market Requirements E-Mail Active-Archiving Vendors Target Broader Market A new market has emerged, which Gartner has named the e-mail activearchiving market, that could be viewed as a subset of the storage management software archiving market or a hybrid market that spans the storage and content management markets. Products need to include archiving, indexing, hierarchical storage management (HSM) and basic records retention management, as well as special applications for meeting the needs of compliance officers and those tasked with producing records for legal discovery requests. Leading solutions bring together all of these components to address the retention requirements around e-mail while providing the opportunity to more efficiently and cost-effectively manage the impact of growing e-mail data stores. E-mail active-archiving is a new solution space evolving from point solutions that targeted message capture for the compliance requirements of the U.S. financial market or solutions that targeted ways to offload the e-mail data store for better management. As a result, many of the solutions in the market are only strong in meeting one of the market requirements, though Gartner expects this to change in the next 12 months. For more information, please see "What Is E-Mail Active Archiving?" TU-21-5490. Supporting multiple messaging systems can provide a vendor with a broadermarketopportunity,butvendorswitharobustofferingfora single platform will continue to thrive since most large enterprises are moving to a single enterprise e-mail platform. E-Mail Active-Archiving Vendors as of Mid-2003 Gartner has positioned vendors with production customers on their vision and ability to execute. For more information, please see "Magic Quadrant for E-Mail Active-Archiving, 2003," M-20-9637. Some vendors covered in this document (see Table 1) were not rated because their products were too new in the market. Service providers offering e-mail active archiving as a service will be covered in a future report. To help enterprises make informed choices about e-mail active-archiving products, we provide an overview of each offering with vendors grouped by primary product focus: Section 1: Multifunctional Solutions AXS-One, EMC/Legato and KVS Section 2: Compliance Supervision Solutions Entelagent, ilumin and Tumbleweed Section 3: E-Mail Data Store Management Educom TS, Connected, IXOSSoftware,Nexic,SunMicrosystemsandTJGroup Section 4: Document and Records Management Vendor Solutions IBM, IMR and Tower Technology 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

3 Table 1 E-Mail Active-Archiving Vendors Shipping Product in Mid-2003 Vendor Product Exchange Domino Others General AXS-One AXS-One Email and IM X X SMTP 1 2003 Connected MailStore 2 X - - 2002 Educom TS EAS X - - 2000 EMC Legato EmailXtender X X Sendmail 2000 Entelagent SAMS Online - - SMTP 1998 IBM CommonStore X X - 2000 ilumin Assentor X X SMTP 1998 IMR MailStore X - - 2002 IXOS ECONserver X X - 2000 KVS Enterprise Vault X - - 1999 Nexic Enterprise Discovery - - GroupWise 2003 Sun Infinite Mailbox - X - 2003 TJ Group CAI Suite X X - 2000 Tower Technology IDM email Archive Option X X SMTP 2003 Tumbleweed Message Monitor - - SMTP 1998 1 Captures all e-mail at the SMTP Internet mail relay or gateway, e-mail application independent 2 Connected will rename its product ArchiveStore in 2004 with the next version release. Source: Gartner Dataquest (November 2003) Vendors With Multifunctional E-Mail Active-Archiving Products Vendors in this section have delivered a solution that can capture all e- mail received by the enterprise as well as e-mail between users on the corporate e-mail systems. Not only can the archive be used to meet the compliance requirements of the U.S. financial industry, but it also can serve as a record of e-mails to meet legal and discovery requirements of other industries. HSM-like technology is used to remove messages from the e-mail data store and provide the user with a link for access to that record in the archive. The vendors have also delivered application modules to support users involved in compliance supervision and discovery activities. AXS-One Email and IM Management Solution (Domino and Exchange) AXS-One has extended its AXS-Point integrated document archival and retrieval system (IDARS) to support automatic archiving of e-mail and instant messages. As a new entrant into the e-mail active-archiving market, the product was designed with the extended set of requirements that include discovery support and e-mail data storage management. The company entered the market in early 2003 with only a handful of customers that have partnered with AXS-One to help mold the design to meet the needs of the financial community. The product supports IBM Lotus Domino and Microsoft Exchange with early adopters heavily weighted toward Domino. It also supports Bloomberg Mail. AXS-One is a small public company (AMEX: AXO) based in New Jersey with 258 employees, supporting two other major product lines in addition to its IDARS and compliance solution. The company focuses its sales 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

4 Vendors Respond to New E-Mail Active-Archiving Market Requirements efforts on financial services and government security agencies. Product revenue accounted for 10 percent of the company's revenue in 2002, but the AXS-Point product line represented 60 percent of product revenue, up from 16 percent in 2001. The company has been in business since 1978. EMC (Legato) EmailXtender for Exchange, Domino and Unix Sendmail EmailXtender was initially developed by a small New Hampshire company, xvault. It became generally available in 2000 after that company was acquired by OTG. The initial archiving and mailbox management focus was expanded with the addition in December 2001 of EmailXaminer, the compliance monitoring/supervision option. The basic product, EmailXtender Archive Edition, provides e-mail data storage management: archiving, indexing and personal store migration. The Full Edition adds real-time capture of all messages, providing full auditing of all activity. EmailXaminer provides the surveillance tools. The primary focus for 2003 was on strengthening the code and improving the depth of the support services for the product. EMC acquired Legato Systems in October 2003 to support EMC's move into the emerging information life cycle management (ILM) market. Managing e-mail over its life cycle is a key part of that strategy and also supports the sale of EMC's Centera, which has a compliance edition that targets markets that require tamper-proof storage. Legato had begun the work to integrate EmailXtender with its ApplicationXtender content management offering but, with EMC's recent announced intent to acquire Documentum, a leading content management vendor, the integration with that product's records management solution should become a part of the product road map. KVS Enterprise Vault for Microsoft Exchange The KVS product entered the market in 1999 to provide an Exchange e- mail data store management solution. A journaling option allows for the capture of all messages, but it wasn't until 2002 that the company added the tools for supervision and to support discovery. The Compliance Accelerator option handles the selection of messages, management of review lists, auditing and reviewer workflow. Discovery Accelerator adds a specialized Web-based interface for search and a workflow-based process for managing the review, annotation and export of the required court-ready documents. Also new in 2002 is the Open Storage Layer Option, which is a documented set of application programming interfaces (APIs) to allow for third-party integration with the Enterprise Vault product. One of the early integrations is with records management vendor MDY. Vault Store Partitioning expands the physical storage options. The Archive Explorer, which expands user access to the archive via a Web browser, is expected to ship by the end of 2003. KVS leads the market based on new license revenue in 2002. The product was originally developed by Digital Equipment but was purchased by the engineering team and spun off into a U.K.-based company in 1999. The 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

150-person company has seen fast growth and has expanded its support and professional services staff in the United States in 2003, resulting in improved customer satisfaction. Although 70 percent of sales are through channel partners, the company does have a direct sales force to support larger accounts that wish a direct relationship. Sales is about evenly split between the United States and Europe, with about 6 percent of its business coming from the Asia/Pacific region. The company is almost completely focused on the e-mail active-archiving market (it also has a SharePoint archiving offering). 5 Vendors With Compliance-Focused Solutions Vendors in this category have focused on the capture of e-mail messages for compliance with regulations from the U.S. Securities and Exchange Commission (SEC) and National Association of Securities Dealers (NASD). Leaders have tools for sampling and supervision of messages to ensure that communication with customers meets legal guidelines. Because these products capture messages at the SMTP Internet relay or gateway, they can capture all messages going into or out of the company regardless of the e-mail application. Entelagent SAMS Online Entelagent is a 12-person Southern California-based software company that was founded in 1996 as a document imaging reseller. It brought SAMS Online to market in 1998 and has established a base of U.S. financial customers. The company is seeking a buyer, and the October 2002 bid by Patron Systems, a subsidiary of Combined Professional Services, has yet to materialize. ilumin Software Services Assentor Enterprise ilumin acquired the Assentor product line from SRA in October 2002. Assentor has the largest base of compliance customers in the e-mail activearchiving market. Assentor has become ilumin's primary product focus, but it still offers a set of products that are targeted at enabling companies to securely do business transactions via the Internet. The corporate headquarters for the 75-person company is in Virginia, and 90 percent of itsbusinessisintheunitedstates.theassentorproductisknownforits supervision, surveillance and compliance functionality, which includes pre-review and quarantine capability and its natural language content analysis. Since ilumin has taken control of Assentor, the company has invested in an expanded support organization and has released the first of a series of options designed to move the product more into the multifunctional segment. A discovery option was added in July 2003 as well as support for the use of watch lists to support "know your customer" initiatives (see "The USA PATRIOT Act Will Spell Trouble in 2003," COM- 18-5188). In September, IBM and ilumin announced a partnership that will lead to integration and cross selling of the ilumin product with IBM's DB2 Content Manager and CommonStore solutions. 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

6 Vendors Respond to New E-Mail Active-Archiving Market Requirements Tumbleweed Message Monitor Tumbleweed is focused on securing e-mail and Internet communications. Many companies use their content filtering software to ensure that nothing enters or leaves the company that doesn't meet company policy. To accomplish that goal, the product analyzes the content, determines the identities of senders and receivers, and manages the business processes that direct the proper flow of information across the extended enterprise. In 2000, Tumbleweed acquired the WorldSecure "staging server" product from Worldtalk Communications. The acquisition also included archiving functionality that allowed for the capture and supervision of messages as a natural extension of its monitoring process. The Tumbleweed Message Monitor is an option to the Tumbleweed Messaging Management System and provides a basic solution for companies that want to just meet the capture and supervision requirement around external customer e-mail communication. Legato DiskXtender is used to support use of optical and Centera as archive storage devices. While the company was early to market with a compliance solution, e-mail active-archiving does not appear to be a strong focus for Tumbleweed moving forward, and the company does not have a strong road map for this product. Vendors With E-Mail Data Store Management Solutions Vendors in this section have focused on capturing e-mail messages into an archive, leveraging messaging product tools that allow for the capture of internal and external messages. For many, the focus is on providing a way to reduce the size of the active e-mail data store for more efficient operation and management. While these solutions provide an archive of e- mail messages in total, they also can have the option to only selectively store messages in the archive. Leaders leave a stub when messages are transferred to the archive so that the size of the active data store is automatically reduced as messages are archived. For these solutions, users can access messages through their mail clients just as if they were in the active data store. For solutions not leaving a stub, mailbox quotas are often implemented with the archive serving as a resource to administrators or users wishing to recover deleted messages. Depending on whether all or some of the messages are archived, the resulting archive can be used for compliance and discovery purposes, though these vendors provide little beyond indexing and basic search capabilities to enable that process. Educom TS Exchange Archive Solution Educom offers a strong product, Exchange Archive Solution (EAS), in the Exchange e-mail archive and data store management space that it sells through a worldwide set of value-added resellers (VARs). The version 3.0 released in early 2003 added improved storage management capabilities for larger and distributed archive architectures and a new storage API. Through the API, the product can be linked to a partner's solution to extend the capabilities of the offering. An example of such a partnership is an integrated offering with the emanage records management solution. Educom claims the largest customer base with 550 customers as of June 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

2003 compared with the 428 reported by KVS, the vendor with the second largest customer base. Educom TS is a private, Canada-based company that is focused on the Exchange e-mail active-archiving space. The company's exclusively reseller approach to the market has allowed the 45-person company to capture a large worldwide customer base with modest company resources. This approach has met with resistance from larger customers but has brought Educom more customers than it has lost. The reseller model also forces Educom to provide a solution that is quick to deploy and easy to maintain. Connected Corporation MailStore for Exchange Connected bought Archive-IT, a small U.K. company, and its MailStore product in November 2003. The product uses journaling for version 5.5 of Exchange and the event sync feature for 2000/2003 to capture and store all e-mail in an archive. Archive-IT marketed the product through resellers such as Bridgehead Software and IntelliReach, which sold the product under the name MessageArchive. Connected Corporation is a Massachusetts-based company that is known for its PC management products and services. Connected plans to continue to sell the existing MailStore product but plans to invest in a major upgrade that will expand the product's capabilities in 2004. IXOS Software econserver for Exchange and Lotus Notes IXOS-eCONserver for Microsoft Exchange and Lotus have their roots in extensions to an IXOS core archiving product known as IXOS-Archive. The company enhanced existing functionality and launched the e-mail archiving as separate product versions in 2000. The offering provides automated e-mail capture and can delete the message in the e-mail system, leaving a link for easy access through the mail client. IXOS partners with Verity or Convera, providing full text search integration and user access to the archive. Expanded capabilities to cover compliance supervision, discovery management and instant messaging have been available through professional services engagements, but the company announced its intention to deliver packaged solutions to support these activities. IXOS announced agreements in November 2003 with Hitachi Data Systems' Global Solutions Services and StorageTek's Global Service Division to market and support the IXOS e-mail archiving and document management software. IXOS Software is a public company headquartered in Germany. The company is best-known for its SAP archiving capabilities, but it has products in multiple spaces, including document management and portals. It added workflow and Web content management to its set of offerings with the January 2003 acquisitions of PowerWork and Obtree. Open Text, a public content management company based in Canada, announced its intent to acquire IXOS in October 2003. The transaction is expected to close in January 2004. 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003 7

8 Vendors Respond to New E-Mail Active-Archiving Market Requirements Nexic Enterprise Discovery There are few good options for GroupWise customers, and Novell was late in providing the kind of API links available for Exchange and Domino. With GroupWise 6.5 service pack 1, the links are now available to developers to hook into the product for better management and archiving. Nexic is working with early customers to understand requirements and is providing a basic entry into the enterprise data store management and archiving market. The Enterprise Discovery product combines a search of the user mailboxes plus the deleted trash folder to capture all messages that meet a given criterion. The 12-person Utah company claims 525 customers for its other GroupWise tools and has a strong interest in helping customers looking for enterprise archiving solutions. Although too early to rate, Nexic was one of the few companies Gartner identified that was aggressively working on a GroupWise solution. Sun Infinite Mailbox for Lotus Sun's professional services organization in Germany has produced an e- mail archiving solution that the company is now turning into a product for wider deployment in the Sun base. The product uses the company's SAM- FS HSM product and a Domino server for the archive. The product can be used to capture all messages but is really designed to offload a portion of a user's mailbox to secondary storage when the mailbox size reaches a defined threshold using the stub technology typical with HSM technology. A Solaris-based archive server is required. The product was released in mid-2003, and Sun is working with a few early adopters. TJ Group CAI for Domino Mail and Microsoft Exchange TJ Group provides a very basic e-mail capture and data store management solution, with 50 percent of its installations in support of European FileNet customers. As with Sun, the product originated from a professional services project. The product relies on the extended capabilities of the FileNet document management system to provide functionality beyond the basic capture and storage. TJ Group is a Finnish company listed on the Helsinki Stock Exchange. The company offers customer relationship management and Web publishing solutions in addition to its archiving product. Document and Records Management Vendor Solutions Most document and records management vendors have identified the need to allow e-mail messages to be included in the corporate records repository, and some have added modules that allow for the mailbox user to categorize and migrate selected messages. Increasingly, the requirement to capture all e-mail for retention for a defined period has surfaced, and some vendors have responded by offering new or expanded options to meet that need. Since these options typically store the messages in the document or records management system repository, new customers will 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

9 typically need to embrace the larger solution to make the purchase costeffective. IBM DB2 CommonStore for Lotus Domino and Exchange Server IBM initially developed its DB2 CommonStore for Lotus as a consulting project in Germany, then turned it into a product in 2000 and created an Exchange version in 2001. The product was designed to allow users to manually move e-mail messages or attachments to an archive. The archive could be based on IBM's DB2 Content Manager and DB2 Content Manager OnDemand, or it could simply write to storage using the Tivoli Storage Manager data movers. As with selective migration products from other document management vendors, this product requires a client-side agent. An automatic migration capability was added in October 2003, and additional features are planned for early 2004 to improve the search capabilities. The company is looking to a relationship with ilumin to provide a compliance solution, which IBM will link into its own repository technology and the records management technology purchased from Terian in November 2002. IMR MailStore for Exchange Information Management Research (IMR) added automatic capture of e- mail with version 3 of MailStore for Exchange in August 2003, having acquired code and some of the installed base from U.K.-based CC Data, which markets similar technology under the name e-marc. The product complements and integrates with IMR's Alchemy document management solution. MailStore can now use the journaling function in Exchange to capture all messages and store them in an archive on disk or optical storage. The product also has the option to selectively move messages. Once in the archive, users can then manage the life cycle with the administrator module. Most customers will leverage Alchemy's indexing and search capabilities to retrieve messages. IMR is a private, Colorado-based company that targets the midmarket with its Alchemy document management product and claims a worldwide base of over 10,000 customers. Alchemy supports links to records management solutions from Hummingbird and PRC Altaris, a product targeted at the law enforcement market. The requirements of the midmarket are more basic than those of the large enterprise, but the company does have a road map for their e-mail archiving solution that will take it beyond basic capture to add e-mail data store management features. Tower Technology IDM email Archive Option Tower Technology added an automated e-mail data capture option to its IDM content management product in March 2003. The IDM email Archive Option leverages Clearswift MIMEsweeper Enterprise or similar technology for SMTP-level capture of messages and to quarantine messages that meet defined criteria. Messages are then stored in the IDM repository. Agents for Exchange and Domino are used to transfer internal e-mail to the archive. Once in the archive, e-mail can be handled as any 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 26 November 2003

10 Vendors Respond to New E-Mail Active-Archiving Market Requirements other document, leveraging all of the categorization, retention and search capabilities within the IDM product. While this solution will be of interest to companies implementing the full IDM solution, Tower is now offering a solution based on Seraph its Department of Defense (DoD) 5015.2 compliant records management product that was announced in March 2003 as an entry solution for new customers wanting to address just the e-mail archiving and records management problem. Tower Technology is a Boston-based company with roots in Australia. The company targets enterprises with large document management requirements and claims a base of over 400 customers for IDM and Seraph. The company's approach to e-mail active archiving is in support of its records and document management customers, not as a separate business focus. Gartner Dataquest Recommendations Enterprises must begin building an e-mail archive that can be immediately useful for legal discovery and migration of older messages to lower-cost, but searchable, media. The e-mail active-archiving market is fragmented, but enterprises may need to purchase a product now as tactical solutions while a larger electronic records and document management approach is defined. Vendor selection will depend on the installed document or records management software, the need to address e-mail management, and the length of time before the enterprise implements a comprehensive document management solution that will incorporate e-mail records. Key Issues What changes in technologies and vendor dynamics will shape the storage industry? What emerging storage technologies and products will enable new business opportunities, and how will they affect already-established storage markets? This document has been published to the following Marketplace codes: HARD-WW-DP-0591 For More Information... In North America and Latin America: +1-203-316-1111 In Europe, the Middle East and Africa: +44-1784-268819 In Asia/Pacific: +61-7-3405-2582 In Japan: +81-3-3481-3670 Worldwide via gartner.com: www.gartner.com Entire contents 2003 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. 118578