BACKUP/MASTER: Enterprise Message Management & Archiving

1. BACKUP/MASTER:Enterprise Message Management & Archiving A Powerful Tool to help Protect Corporate Assets while reducing the Costs & Risks of Email Peter Gerr Senior Research Analyst Enterprise Strategy Group

2. Orientation • Enterprise Messaging (EM) applications have become mission critical to modern business • ‘The Smoking Gun” problem – • Electronic communications & records heavily scrutinized, specifically within regulated industries • EM mgmt & archival, though vital, is not a core competency • EM archiving solutions can: • Deliver business & administrative efficiencies • Reduce both the CAPEX & OPEX consumed through managing EM • Mitigate risk associated with enabling corporate governance / regulatory compliance • EM archiving is an increasingly important component of enterprise storage solutions & an entrée into ILM / DLM discussion

3. Why focus on enterprise messaging? • 61% of end users responded that enterprise messaging applications were the most critical in terms of data protection (ESG Research, January 2004)

4. Compliance & Risk Management Content & Records Management Storage Management EMA - at the crossroads of IT & business EMA

5. Storage Management Storage management – Cost reductions Benefits: • Extend useful lives of servers & storage assets • Improve performance of messaging applications • Reduce cost of storage by archiving to lower-cost media • Maintain or reduce administrative / support staff needed to support EM • Reduce time required to recover mailboxes / archived messages & attachments EMA

6. Content & Records Management Benefits: • Manage / protect corporate intellectual property • Ability to manage lifecycle of electronic business records in accordance with corporate / regulatory compliance • Enables “information-centric” view of business • Unifies asset creation with business workflow • Provides customizable policy / search tools to improve ECM ECM / ERM – Preserving corporate IP EMA

7. Compliance & Risk Management Corporate governance – Reducing risk Benefits: • Reduces the cost & time to support litigation & perform electronic discovery • Enables proactive sampling, supervision, & auditing • Automates archiving, retention, and deletion of messages based on policy • Single point of management & control for corporate IP • Reduces risk of / discourages unlawful / illegal conduct by employees EMA

8. The new reality of message management • It is not acceptable to just delete e-mail and IMs • Messaging applications are dynamic not static like documents • Corporations must provide information to opposing council whether or not corporate policy allows for deletion • Mandatory retention periods for best information retention practice • Solutions need to be a combination of proactive, reactive and defensive

9. Any size organization, public or private at risk • At particular risk: Securities, Insurance, Health Care, Financial Services, Pharmaceutical & Food • Archived records & other content must be readily accessible • Recovery time objectives (RTOs) becoming more stringent Another consideration: Litigation Potential Implications: • Fines & Sanctions • Loss of Shareholder Value & Trust • Class Action Lawsuits • Potential Criminal Charges • Prison Terms for Executives

10. “New Rules” of message management • Retention The requirement to keep records for specified times • Disposition The requirement to delete records in accordance with corporate or regulatory policy • Discovery The requirement to query archived messages for specific records and/or associated content • Disclosure The requirement to retrieve and make records available • Supervision Monitoring for appropriate behavior by employees

11. What should you consider? • Enterprise message management solutions that are: • Efficient and effective - Ensures appropriate levels of data protection while lowering TCO and reducing risk • Scalable and flexible – Able to handle explosive message volume while enabling automated archival • Secure and intelligent – Protect messages in accordance with regulations yet allow for rapid search, retrieval & supervision

12. ESG CBA Tool - Key Dimensions • Organizational size • Measures number of EM users within given organization • E-mail usage & volume growth • Measures annual projected growth of EM volume • Impacts storage requirements, administrative costs of general search & retrieval • Record retention policies & regulatory intensity • Measures frequency of compliance-related discovery events • Impacts operational, administrative & legal costs • Average cost per employee • Measures EM user costs & increased productivity (monetized) • Impacts total costs & benefits

13. Cost categories Software Hardware Design & implementation Training Ongoing administration & support Benefit categories Reduction in service provider costs Reduction in general e-mail search & retrieval costs Reduction in compliance-related E-mail search & retrieval costs Reduction in non-compliance penalties & fees Gains in employee productivity ESG CBA Tool – Cost & benefit categories

14. ESG findings - Benefits of archiving • Cost avoidance • Hardware - improved utilization of existing servers. Avoid servers & storage proliferation • Compliance – Reduce/mitigate risk of regulatory fines & legal costs • Direct savings • Eliminate third-party archiving service provider contracts • Staff reduction/reallocation • Archiving helps eliminate need to manually enforce mailbox quotas (10 man-hours per week) • Compliance insurance policy • Reduced backup size and as a result, RTO

15. What features should users consider? • Basic features • Insource vs. Outsource? • E-mail/Instant Messaging client support • Exchange, Notes, Groupwise, SendMail • Public networks (Yahoo, MSN, AIM) & Private • Policy-based mailbox and retention management • Full content (message & attachment) indexing • “beware of false positives” • De-duplication/coalescence of redundant data & attachments (enables “single-instance storage”) • Full audit trail

16. What features should users consider? • Advanced features • Active surveillance – • Monitor inbound / outbound messages for suspicious, inappropriate, or forbidden terms • Active quarantine - • Ability to segregate pre- and post-delivery messages that violate corporate policies • Corporate governance/compliance-enabling features • 3rd party supervision & review • Customizable lexicon for queries (templates are nice) • Electronic discovery & litigation support workflow

17. High-level benefits to consider • Executive management, CxOs, kegal & compliance - • Appeal to mandate to mitigate corporate risk & lower IT costs • Lower TCO for EM environment, legal/consultative support • Improve organization’s ability to manage & protect corporate I.P. • IT, Storage, & e-mail administration – • Appeal to ineffective, costly & risky EM management practices • Extend life of server/storage assets while improving EM performance • Improve/maintain data protection levels as EM volume grows • Knowledge workers, staff – • Increased productivity, reduction/elimination of PSTs & IT-imposed quotas • Minimal impact to workflow with short learning curve