Clearwell Systems Survey Finds Cloud and Social Media Apps Will Be Twice as Relevant in E-Discovery by End of 2011

Clearwell Systems, a leader in intelligent e-discovery, today announced findings from a survey conducted in conjunction with analyst firm Enterprise Strategy Group. The survey, titled "Trends in E-Discovery: Cloud and Collection," highlights the rise of litigation, the enterprise trend toward bringing e-discovery in-house, and, in particular, the growing impact of cloud computing and social media on electronic discovery. These mediums will double in importance and scope for e-discovery this year, according to respondents. The survey results were based upon responses gathered from more than a hundred Fortune 2000 enterprises and government agencies.

The results

According to the results, 30 percent of respondents reported cloud-based applications as in-scope for e-discovery in 2010. In 2011, that number is expected to jump to 60 percent, illustrating the pervasiveness of cloud computing as part of corporate IT infrastructure and the need for companies to be in control of their data both inside and outside of their firewalls. Yet in spite of the rising importance of cloud-based applications in e-discovery, only one quarter of respondents deemed their organization actually prepared to handle e-discovery requests involving the cloud. When asked why they were unprepared to respond to the necessary cloud-related requests, 39 percent stated they had no prior need, during an alarming 37 percent reported their organization had simply no defined policy for discovery of cloud-based applications.

"The recent Texas court ruling allowing Facebook accounts to be screened as part of the jury selection process is just one example of the increasing importance of social media in the legal industry," said Brian Babineau, vice president, Innovation and Analyst Service, Enterprise Strategy Group. "Should the contingency arise, our innovation indicates that 34 percent of companies are currently using cloud-based applications and another 21 percent plan to, which means that e-discovery activities will have to incorporate these new enterprise data sources. These two market trends exacerbate the urgency for enterprises to take the necessary precautions and implement the proper processes to meet the ever-changing demands of rising litigation requests. Organizations must proactively address cloud computing and social media as part of their overall e-discovery strategies, or if not expose themselves to magnified risk and added expense."

"The explosion of electronic data coupled with the continuous rise in litigation has pushed e-discovery to become a core business process for organizations in every industry," said Kamal Shah, vice president of products and marketing at Clearwell Systems. "The results of this survey illustrate how important it is for companies to adapt their e-discovery strategies to address new technologies and data sources, like cloud computing and social media, or be at risk of non-compliance. Solutions just as the Clearwell E-Discovery Platform, which provides Microsoft BPOS and full SharePoint support, help corporations manage these ever-evolving mediums, take greater control of the e-discovery process and mitigate risk."

Enterprise Strategy Group is an integrated, full-service IT analyst and business strategy firm, world-renowned for forward-looking market intelligence, analysis, and consulting services that deliver proven, measurable results. Recognized as one of the world's top 10 analyst firms by offering a unparalleled blend of capabilities-including world-class market innovation, hands-on technical product testing, and expert consulting methodologies just as the ESG Strategy Lifecycle-ESG is relied upon by IT professionals, innovation vendors, institutional investors, and the media for actionable IT and business intelligence.