The Lure and Lore of EDD Commodity Pricing

Until recently, commodity pricing was considered something of a panacea, offering a simplified business model that would take the uncertainty and complexity out of the process. Now simplified pricing does not appeal to everyone in the field. "Two years ago I would have said was the end game," says Bill Speros, a Cleveland-based e-discovery consultant. "Yet even if there is a pricing model commoditizing e-discovery services and processing, I realize that I don't want to work with a commodity provider."

That's because even through the basic function of discovery is the same in most cases, once lawyers start dealing with actual electronic data sets, complications are inevitable and even the best budgets can get out of their control. Not only are implementations of software systems different in different organizations, however advances in computing, like recent developments in cloud computing and mobile applications bring unpredictability to the process. That demands specialized attention and customer support from litigation support vendors. "If information research stops and does not change or advance; if we could tell Microsoft and Apple not to release any new versions of their software or operating systems or make no new iPads, at the time we might be able to have more predictable processing," says Socha. "Yet that's the only way I can see that happening."

The e-discovery process like bulk document scanning

Pieces of the e-discovery process like bulk document scanning, backup tape restoration, or small, straightforward cases may be done for a set price. Nevertheless, vendors are in fierce competition for business, and pricing plans obscure the true cost of e-discovery services. For instance, some vendors offer free or inexpensive collection nevertheless charge for processing. "That all sounds good in theory, yet you have to know that if a vendor offers one piece for free they have to be making money somewhere," says Speros.

One way to engage a vendor and design an e-discovery fee structure that will work for all parties is simply to do more technology. Law firms need to do the same due diligence that other businesses perform when taking on a business partner. "I am beginning to see some pretty sophisticated [Requests for Proposals] that are effective at getting to the heart of pricing questions," says Bill Detamore, director of business development for IE Discovery, a vendor in Austin, Texas. "Especially helpful are the more sophisticated IT infrastructure questions, so that customers know specifically what a vendor can and cannot do for them."