The eDiscovery Software Market: A Snapshot of Solutions and Client Concerns

ClearEdge is seeing an uptick in eDiscovery deals. We have summarized our observations of this market based on recent case work.

What is eDiscovery Software?

Also known as document review software, eDiscovery software automates the electronic discovery process. This process can be applied to any electronically stored information (ESI) and includes the identification, preservation, collection, processing, review, analysis, and production of digital data, to support the legal discovery process. In other words, the software can quickly scan emails, social media, cellphone data, GPS, and a host of cloud-based documents to speed the discovery process, which is often conducted on a project basis in conjunction with lawsuits, audits, and other investigations. It is typically used by law firms, government agencies and law enforcement.

eDiscovery improved software
New > Old. eDiscovery software has increased efficiency and organization for the legal discovery process.

The eDiscovery suppliers we’ve observed most frequently are:

  • Nuix, with products called Nuix Workstation, Nuix Discover, Nuix Investigate, Nuix enterprise collection, and Nuix adaptive security.

  • Exterro, which calls itself the “only unified legal GRC software platform” with a suite that includes Legal hold, ESI Vault, and eDiscovery Data Management.

  • Zapproved, with a product called zDiscovery which streamlines data preservation, collection, processing, and review; and zDiscovery hold, designed to improve compliance, and reduce time spent managing legal holds.

  • Logikcull, whose suite includes Logikcull Discovery, an end-to-end automation solution, and Logikcull Hold, which automatically sends and tracks legal notices.

Other vendors with eDiscovery solutions include CommVault, Open Text, Relativity, IBM, Catalyst, Mitratech Holdings, Vertical Discovery Corp, Forensic Took Kit by Access Data, Onna, Globanet, Consilio, Reveal, Veritas, and Hanzo.

Client concerns regarding eDiscovery deals include:

  • Suppliers frequently bundle functionality and use a variety of confusing metrics, making it difficult for clients to (a) buy only what they need, and (b) understand their contractual obligations.

  • Pricing is subscription-based on usage commitment levels, and a common customer complaint is the difficulty of forecasting demand accurately.

  • Vendors are motivated by term lengths (rather than volume) and will grant deeper discounts on multi-year commitments.

  • Renewal cap protections are not always included in contracts; when they do appear, the average is 3%.

This growing market segment offers the customer many similar choices, and ClearEdge always counsels’ clients to introduce competitors into deals to increase leverage and improve pricing. For more information about this subject, download our blog titled “Leverage: The Key to Every Deal” or contact your ClearEdge representative.

- Marisol Esquivel is a Research Analyst at ClearEdge Partners.