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    Content Assessment: In The House? The Fall 2022 eDiscovery Total Cost of Ownership Survey

    Information - 95%
    Insight - 94%
    Relevance - 95%
    Objectivity - 93%
    Authority - 94%

    94%

    Excellent

    A short percentage-based assessment of the qualitative benefit of the post highlighting the eDiscovery total cost of ownership as shared by cybersecurity, information governance, and legal discovery professionals in the fall of 2022.

    Editor’s Note: ComplexDiscovery regularly conducts non-scientific surveys to gain insight into the business of eDiscovery. These surveys include the quarterly eDiscovery Business Confidence Survey, focused on gaining insight into the current confidence of eDiscovery-ecosystem professionals regarding economic factors impacting the creation, delivery, and consumption of eDiscovery products and services. Recently ComplexDiscovery expanded its survey portfolio by introducing a new business survey focused on understanding the total cost of ownership (TCO) of in-house managed eDiscovery. The new survey consisted of twenty-two multiple-choice questions focused on factors relating to the procurement, management, and maintenance of in-house eDiscovery. Additionally, the survey contained three optional questions focused on procurement and upgrade timelines. The results of this new survey may benefit cybersecurity, information governance, and legal discovery professionals seeking to better understand the TCO of in-house eDiscovery. 


    Industry Survey

    The Fall 2022 eDiscovery Total Cost of Ownership Survey Results

    Final Results

    Designed to provide valuable insight into the costs associated with the in-house management of an eDiscovery business, the eDiscovery Total Cost of Ownership (TCO) Survey is a new survey that was administered for the first time by ComplexDiscovery during the fall of 2022. Today ComplexDiscovery shares the results of this survey.
     
    The survey results may be important to those operating in the eDiscovery ecosystem for two primary reasons. The first reason is that eDiscovery consumers generally pay a premium for eDiscovery services due to the high cost of owning, managing, and maintaining eDiscovery environments, and by having a better understanding of ownership costs, eDiscovery consumers may be more informed in assessing the actual cost of eDiscovery. The second reason is that eDiscovery business owners face challenges in explaining and justifying pricing to consumers based on the complexity of eDiscovery pricing and the lack of publicly available information on the total cost of eDiscovery ownership. With market information to share in this arena, eDiscovery business owners may be better positioned to educate and inform consumers on the total cost of eDiscovery ownership.
     
    The eDiscovery TCO survey response period was initiated on October 18, 2022, and continued until November 4, 2022. The survey was highlighted and promoted primarily by direct email from ComplexDiscovery and the EDRM to industry professionals operating in the eDiscovery landscape.
     
     
    This initial eDiscovery TCO survey experienced a strong* response rate, with 50 industry professionals sharing detailed insight into the management of an in-house eDiscovery business. While individual answers to the survey are confidential, the aggregate and unfiltered results are published to highlight data points related to the procurement, management, and maintenance of in-house eDiscovery. These results may be useful for legal, information technology, and business professionals seeking to better understand the total cost of eDiscovery ownership.

    Total Cost of Ownership Questions

    n=50 Respondents

    eDiscovery TCO Survey – Background Questions
     
    Background: What area best describes the geography of your organization’s eDiscovery business?
     
    • North America (US) – 88.0%
    • Europe (Non-UK) – 4.0%
    • Asia/Asia Pacific – 4.0%
    • North America (Canada) – 2.0%
    • Europe (IK) – 2.0%
    • Middle East/Africa – 0.0%
    • Central/South America – 0.0%

    Background: What area best describes your primary function in the conduct of your organization’s eDiscovery-related business?
     
    • Legal/Litigation Support – 82.0%
    • Business/Business Support – 16.0%
    • IT/Product Development – 2.0%

    Background: What area best describes your level of support in the conduct of your organization’s eDiscovery-related business?

     
    • Executive Leadership – 36.0%
    • Operational Management – 42.0%
    • Tactical Execution – 22.0%

    eDiscovery TCO Survey – Core Questions

    General Questions

    1. Which business segment best describes your business in eDiscovery?

    • Law Firm – 36.0%
    • Software and/or Service Provider – 26.0%
    • Consultancy – 24.0%
    • Corporation – 8.0%
    • Governmental Entity – 4.0%
    • Media/Research – 2.0%
    1 - TCO Survey Respondents by Organizational Segment - Fall 2022

    2. What percentage of your business is managed in-house?

    • 0% – 25% – 14.0%
    • 26% – 50% – 6.0%
    • 51% – 75% – 8.0%
    • 76% – 100% – 62.0%
    • Do Not Know – 10.0%
    2 - TCO - Percentage of eDiscovery Business Managed In-House - Fall 2022

    3. How much Active Data does your organization maintain related to eDiscovery Hosting Services on a MONTHLY basis?

    • Less Than 1TB – 22.0%
    • 1TB – 10TB – 18.0%
    • 11TB – 25TB – 10.0%
    • 26TB – 50TB – 10.0%
    • 51TB – 100TB – 10.0%
    • Greater Than 100TB – 16.0%
    • Do Not Know – 14.0%
    3 - Monthly Active Data Maintained Related to eDiscovery Hosting Services

    4. How much new eDiscovery data does your organization process on a MONTHLY basis?

    • Less Than 1TB – 34.0%
    • 1TB – 10TB – 34.0%
    • 11TB – 25TB – 8.0%
    • 26TB – 50TB – 8.0%
    • 51TB – 100TB – 0.0%
    • Greater Than 100TB – 6.0%
    • Do Not Know – 10.0%
    4 - TCO New eDiscovery Data Processed Monthly - Fall 2022

    Software-Centric Questions

    5. How many users does your organization license MONTHLY for eDiscovery-related support?

    • Less Than 250 Users – 56.0%
    • Between 250 and 500 Users – 18.0%
    • Between 501 and 1000 Users – 12.0%
    • Greater Than 1000 – 6.0%
    • Do Not Know – 8.0%
    5 - TCO Monthly Users Licensed for eDiscovery-Related Support - Fall 2022

    6. What is your average MONTHLY spend on all user licensing fees for your primary eDiscovery platform?

    • Less Than $25K – 52.0%
    • Between $25K and $50K – 14.0%
    • Between $51K and $100K – 6.0%
    • Greater Than $100K – 8.0%
    • Do Not Know – 20.0%
    6 - TCO Average Monthly Spend on All User Licensing Fees for Primary eDiscovery Platform - Fall 2022

    7. How much does your organization spend ANNUALLY on eDiscovery processing software?

    • Less Than $50K – 38.0%
    • Between $50K and $250K – 18.0%
    • Between $251K and $500K – 10.0%
    • Greater Than $500K – 18.0%
    • Do Not Know – 16.0%
    7 - Annual Spend on eDiscovery Processing Software - Fall 2022

    8. How much does your organization spend ANNUALLY on data storage?

    • Less Than $50K – 32.0%
    • Between $50K and $250K – 12.0%
    • Between $251K and $500K – 14.0%
    • Greater Than $500K – 18.0%
    • Do Not Know – 24.0%
    8 - TCO Annual Spend on Data Storage - Fall 2022

    9. How much does your organization spend ANNUALLY on infrastructure licensing supporting software applications?

    • Less Than $25K – 40.0%
    • Between $25K and $50K – 10.0%
    • Between $51K and $100K – 12.0%
    • Greater Than $100K – 8.0%
    • Do Not Know – 30.0%
    9 - TCO Monthly Spend on Infrastructure Licensing Supporting Software Applications - Fall 2022

    10. How much does your organization spend ANNUALLY on security application and licensing services?

    • Less Than $25K – 36.0%
    • Between $25K and $50K – 2.0%
    • Between $51K and $100K – 8.0%
    • Greater Than $100K – 12.0%
    • Do Not Know – 42.0%
    10 - TCO Annual Spend on Security Application Licensing and Services - Fall 2022

    11. How much does your organization spend ANNUALLY on security audits, certifications, and employee security training?

    • Less Than $25K – 34.0%
    • Between $25K and $50K – 14.0%
    • Between $51K and $100K – 8.0%
    • Greater Than $100K – 8.0%
    • Do Not Know – 36.0%
    11 - TCO Annual Spend on Security Audits, Certifications, and Employee Security Training - Fall 2022

    Hardware-Centric Questions

    12. What is the ANNUAL cost of your organization’s IT infrastructure?

    • Less Than $250K – 30.0%
    • Between $250K and $500K – 8.0%
    • Between $501K and $1M – 6.0%
    • Greater Than $1M – 18.0%
    • Do Not Know – 38.0%
    12 - TCO Annual Cost of IT Infrastructure - Fall 2022

    13. Does your organization rent, lease, or own IT/data storage facilities?

    • Self-Owned Facilities – 50.0%
    • Colocation Uses – 32.0%
    • Leasing Dedicated Cage(s) or Cabinet(s) – 12.0%
    • Use Public Cloud (AWS, Azure, Google, etc.) – 58.0%
    • Do Not Know – 10.0%
    13 - TCO Rent Lease or Own IT Data Storage Facilities - Fall 2022

    14. How much does your organization spend MONTHLY on data center space?

    • Less Than $10K – 32.0%
    • Between $10K and $25K – 12.0%
    • Between $25K and $50K – 2.0%
    • Greater Than $50K – 6.0%
    • Do Not Know – 48.0%
    14 - TCO Monthly Spend on Data Center Space - Fall 2022

    15. What is your organization’s ANNUAL budget for servers, storage, and related data center hardware?

    • Less Than $250K – 38.0%
    • Between $250K and $500K – 6.0%
    • Between $501K and $1M – 4.0%
    • Greater Than $1M – 8.0%
    • Do Not Know – 44.0%
    15 - TCO Annual Budget for Servers Storage and Related Data Center Hardware - Fall 2022

    Staffing-Centric Questions

    16. How much does your organization spend ANNUALLY on staffing to maintain your IT infrastructure and related IT services?

    • Less Than $250K – 36.0%
    • Between $250K and $500K – 10.0%
    • Between $501K and $1M – 6.0%
    • Greater Than $1M – 12.0%
    • Do Not Know – 36.0%
    16 - TCO Annual Spend on Staffing to Maintain IT Infrastructure and Related IT Services - Fall 2022

    17. How much does your organization spend ANNUALLY on staffing for your information security?

    • Less Than $250K – 40.0%
    • Between $250K and $500K – 16.0%
    • Between $501K and $1M – 0.0%
    • Greater Than $1M – 6.0%
    • Do Not Know – 38.0%
    17 - TCO Annual Spend on Staffing for Information Security - Fall 2022

    18. How much does your organization spend ANNUALLY on application support?

    • Less Than $250K – 42.0%
    • Between $250K and $500K – 12.0%
    • Between $501K and $1M – 4.0%
    • Greater Than $1M – 6.0%
    • Do Not Know – 36.0%
    18 - TCO Annual Spend on Staffing for Application Support - Fall 2022

    19. How much does your organization spend ANNUALLY on staffing for project management?

    • Less Than $250K – 50.0%
    • Between $250K and $500K – 14.0%
    • Between $501K and $1M – 6.0%
    • Greater Than $1M – 8.0%
    • Do Not Know – 22.0%
    19 - TCO Annual Spend on Staffing for Project Management - Fall 2022

    Miscellaneous and Unplanned Costs TCO Questions

    20. How much does your organization spend ANNUALLY on backup and disaster recovery?

    • Less Than $250K – 42.0%
    • Between $250K and $500K – 4.0%
    • Between $501K and $1M – 4.0%
    • Greater Than $1M – 0.0%
    • Do Not Know – 50.0%
    20 - TCO Annual Spend on Backup and Disaster Recovery - Fall 2022

    21. How much coverage does your organization have for cyber insurance?

    • Less Than $1M – 20.0%
    • Between $1M and $2M – 10.0%
    • Greater Than $2M and up to $5M – 12.0%
    • Greater Than $5M – 4.0%
    • Do Not Know – 54.0%
    21 - TCO Organizational Cyber Insurance Coverage - Fall 2022

    22. How much does your organization spend ANNUALLY on cyber insurance?

    • Less Than $25K – 30.0%
    • Between $25K and $50K – 6.0%
    • Between $51K and $100K – 2.0%
    • Greater Than $100K – 2.0%
    • Do Not Know – 60.0%
    22 - TCO Organizational Annual Cyber Insurance Spend - Fall 2022

    eDiscovery TCO Survey – Optional Questions

    Procurement and Upgrade Timelines

    23. What is the typical lead time required when ordering new data center equipment?

    • Less Than Two Weeks – 12.0%
    • Between Two Weeks and Six Weeks – 24.0%
    • Between Seven Weeks and Twelve Weeks – 12.0%
    • Greater Thank Twelve Weeks – 6.0%
    • Do Not Know – 46.0%
    23 - TCO Typical Lead Time Required When Ordering New Data Center Equipment - Fall 2022

    24. When a major version of your primary eDiscovery software is released, how soon does your organization apply the update in production?

    • Less Than One Month – 34.0%
    • Between One and Three Months – 34.0%
    • Between Four and Six Months – 12.0%
    • Between Seven and Twelve Months – 6.0%
    • Greater Than Twelve Months – 2.0%
    • Do Not Know – 12.0%
    24 - TCO Typical Time to Apply Major Version Updates to Primary eDiscovery Software in Production - Fall 2022

    25. What is the single most driving factor that impacts your timing on production updates?

    • Time and Staff Availability – 39.6%
    • Client Contract Stipulations – 4.2%
    • Internal Policies – 10.4%
    • Watchful Waiting (Potential Issues/Bugs) – 35.4%
    • Do Not Know – 10.4%
    25 - TCO Single Most Driving Factor Impacting Timing of Production Updates - Fall 2022

     
    *Survey methodology focused on achieving at least 50 responses with the least number of emails sent to the ComplexDiscovery and EDRM industry professional databases. This approach sought to minimize the number of requests for survey participation while ensuring a solid number of responses from which to generally assess market sentiment in survey areas of interest.

    Additional Research

    Source: ComplexDiscovery

     

     

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    ComplexDiscovery is an online publication that highlights cyber, data, and legal discovery insight and intelligence ranging from original research to aggregated news for use by cybersecurity, information governance, and eDiscovery professionals. The highly targeted publication seeks to increase the collective understanding of readers regarding cyber, data, and legal discovery information and issues and to provide an objective resource for considering trends, technologies, and services related to electronically stored information.

    ComplexDiscovery OÜ is a technology marketing firm providing strategic planning and tactical execution expertise in support of cyber, data, and legal discovery organizations. Focused primarily on supporting the ComplexDiscovery publication, the company is registered as a private limited company in the European Union country of Estonia, one of the most digitally advanced countries in the world. The company operates virtually worldwide to deliver marketing consulting and services.

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