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© 2007 IBM Corporation You need to search through 3 years of e-Mail on the 5-Wheel Bike project Start You have a Lotus Domino or MS Exchange eMail infrastructure in place Uh-oh…the SeptaCycle Foundation is suing you for taking their idea. btw- CommonStore for SAP can improve your SAP system performance e-Mail Archiving & Discovery for Lotus Domino & Exchange Reduce in-house expense of legal IT Experts Monitor employee compliance Use visualization techniques to show relationships among people based on evidence Optimized business Processes mean better Response times to Customer inquiries CommonStore helps you to reduce investment for additional hardware e-Mail Archiving and Records Management can help you meet them Pre & Post Supervision of e-Mail Detect bad behavior w/Supervision Compliance is Golden! CONGRATULATIONS! Archiving is designed to reduce data on high performance disk devices Corporate Governance means you create your own corporate compliance requirements Welcome to Compliance & eDiscovery e-Mail Search makes Legal Discovery a snap! El Searcho, El Findo! Find e-Mail records whenever the need arises. Retain eMail Records as a key corporate asset for years Single-Instance Storage reduces your email DASD footprint Records Manage- ment allows you to store eMail as a corporate record Uh-oh – each one of your people is generating 4 megabytes of eMail every day – your system performance is all over the floor Compliance & eDiscovery Chutes and Ladders
© 2007 IBM Corporation "It's what my company and I didn't know about e-mail archiving and e-discovery that got us into trouble" Tom Reding, CRM, Executive Consultant: Risk, Governance, & Compliance Solutions
© 2007 IBM Corporation 131 million (est.) emails sent daily –Predicted to increase to 276 billion by 2009 Email is –75% of corporate Intellectual Property –Subject to government and industry regulations eg FRCP –Increasingly subpoenaed in litigation 30% of people’s time is spent searching for relevant information. Nearly 60% of companies impose mailbox size limits to curb the growth. E-mail Messaging is Exploding E-mail has become the primary medium for how we communicate. The consequence is that e-mail has become a de facto [record] repository. CIO Magazine, Jan 2005 E-mail has become the primary medium for how we communicate. The consequence is that e-mail has become a de facto [record] repository. CIO Magazine, Jan 2005
© 2007 IBM Corporation Legal Discovery Factoids We live in the most litigious society in history Legal discovery represents 75% of litigation costs in most major cases 80% of all the world's lawyers are in the US 130,000 students are currently attending law schools Plaintiffs filed 30 Million new lawsuits last year or 82,000 per day 22,000 regulations world-wide requiring the retention of information 14,000 regulations in the US requiring the retention of information
© 2007 IBM Corporation e-Mail Management & e-Discovery Statistics Do any of these sound familiar? 50% of IT mangers said, they’d rather have a cavity filled than respond to a e-discovery request. 63% of respondents have been required to produce an e- mail as part of legal action. 53% of respondents admit they are not prepared to meet the new amendments to the FRCP. 1 in 3 organizations isn’t even aware of the “new” FRCP rule changes. 52% of IT managers surveyed do not have an e-Discovery plan in place that has been prepared by legal counsel. June 2007 Osterman Research, Inc. 400 IT Managers & end users
© 2007 IBM Corporation Impact of the New FRCP Amendments on your Business ONLY 7% of corporate counsel attorneys rated their companies as prepared for the new amendments. 20% annual e-mail use growth. 60% of organizations impose an e-mail box size limit today. Instant messaging growth from one-third of e-mail users today to ubiquitous by 2009. Osterman Research Inc. January 2007
© 2007 IBM Corporation Recovered Emails Bedevil Qualcomm in Court By DON CLARK - Wall Street Journal October 9, 2007; Page B1 Chip maker Qualcomm Inc. has long battled rivals in court. Near the end of one trial in January, Viji Raveendran, a senior company engineer, made a surprise disclosure: a search by her lawyers had turned up emails about a key issue that hadn't been shared with defendant Broadcom Corp. "This is every trial lawyer's nightmare," says Francis H. Morrison III, a lawyer for Axinn Veltrop & Harkrider LLP who isn't involved in the case. Others are having bad dreams, too. Failures in finding, saving and sharing emails are bedeviling large and small litigants, undermining their credibility with judges and affecting the outcome of high-stakes trials. New federal rules have reinforced companies' obligations to produce electronic evidence, which has exploded in volume as emails replace phone calls and other business communications.
© 2007 IBM Corporation E-mail Systems Have Simply Become Overloaded Overloaded e-mail systems cause: –System down time –Bloated inboxes –IT imposed mailbox size limits –Private archives (.pst/.nsf files) –Lost data due to.pst/.nsf corruption –Increased storage costs –Increased backup and restore times –Time consuming server upgrades and consolidation –Overwhelming challenge managing e-mail backup tapes E-mail systems were not designed to store vast amounts of email and attachments for long durations. Companies are challenged to manage and store increasing amounts of e-mail. Implementing mailbox size limits is not the answer – employees keep local copies that may be discoverable, creating a compliance and legal nightmare. Backup/restore times take longer. Compliance requires e-mail to be retained more stringently for long periods of time – adding to the e-mail storage problem. Attachments Mail body
© 2007 IBM Corporation Companies are Struggling with Regulations and Lawsuits Mounting Regulatory Pressure –Complexities of assimilating and managing regulations –High penalties and brand damage associated with not meeting regulatory compliance Increasing Risk and Cost of Litigation –Inability to rapidly and cost effectively retrieve subpoenaed emails (~72 hours) –Most electronic messages are either deleted or are stored on tape that is not indexed and not easily accessible Companies must ensure email authenticity Morgan Stanley paid a $15 million fine to settle a Securities and Exchange Commission (SEC) probe into its failure to preserve e-mail. On average, large companies have 86 non-frivolous lawsuits ongoing. Nearly 3 out of every 4 enterprises were required to search backup tapes for old e-mail in the past three years. Five U.S. Banks were fined $1.25 million for being unable to retrieve subpoenaed e-mail – which were stored on backup tapes. A single legal discovery for e-mail can cost between $150,000 and $250,000. One lawsuit could ruin a small business. Dear [name of opposing counsel] By this letter, you and your client are hereby given notice not to destroy, conceal or alter any paper or electronic files, or other data generated by and/or on your client’s computer systems and storage media. This includes, but is not limited to: e-mail and other electronic communications…. Sources: Gartner; Osterman Research; various news articles.
© 2007 IBM Corporation Cost Drivers - eDiscovery and Compliance Process Management $1500/Gig $2600/Gig $1200/Gig $1000/Gig $2250/Day $500/Tape $1000/Server $20 / CD, DVD $40 / mailbox $200/Gig … $400/hr The average cost of defending a lawsuit exceeds $1.5 million per case Average # of new disputes / year: 50 Gartner 2007 Service provider charges, Socha-Gelbmann 2007 Most of the process is handled by service providers, outside law firms due to non existent inhouse solutions Funneling data to service providers in huge volumes including irrelevant, redundant, expired information due to lack of corporate record retention, hence excessive fees paid, especially for legal processing and review No early case insight, no early case strategy
© 2007 IBM Corporation Why Don’t We Hear More About “Success Stories”? Corporate reluctance to draw attention to themselves –They are “cautious” to “be public” Evolutionary process still in progress –They “have not yet arrived” A first or early phase deployment –Desire to wait until their deployment is more mature
© 2007 IBM Corporation Even in a “downturn economy” Reasons why Corporations are Still Spending Money on GRC
© 2007 IBM Corporation Comply or Die: GRC Software Ain’t Sexy, But It Sure Sells Businesses in Germany, Japan and US collectively will spend $32.1 billion on GRC Technology Services, up 7.4% over 2007 –65% of Organizations were increasing their spending –26% of Organizations were expecting to spend about the same How are Organizations Addressing GCR: –38% Globally –36% Domestically –25% LoB AMR Research Survey March 2008 Informationweek.com 4/7/2008
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