1. info@contoural.com
In-sourcing e-Discovery
What and How Much Can You and
Should You Do In House
Mark Diamond
President & CEO
November 20, 2008

2. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 2
Legal Information Is Not Legal Advice
Contoural provides information regarding business, compliance and litigation trends
and issues for educational and planning purposes. However, legal information is not
the same as legal advice -- the application of law to an individual or organization's
specific circumstances. Contoural and its consultants do not provide legal advice.
Clients should consult with competent legal counsel for professional assurance that
our information, and any interpretation of it, is appropriate to each client's particular
situation.
Confidentiality
The information contained in this Presentation constitutes trade secrets and/or
information that is commercial or financial and confidential or privileged to Contoural.
It is furnished in confidence, with the understanding that it will not, without the prior
written permission of Contoural, be used or disclosed for other than evaluation
purposes.
Disclaimer

3. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 3
New Litigation Environment
Reasonably
Accessible
Sanctions
ESI
Data Map
December 1, 2006
FRCP Amendment
Local Protocols
Spoliation
Reasonable
Anticipation of
Litigation30(b)(6) Witness
Safe
Harbor
Rule 26
Conference
Cost Shifting

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Page 4
Electronic Document Accumulation Making
e-Discovery More Difficult
Source: Contoural Osterman Research Report 2008
Storage Growth from E-mail: 2006 to 2007
Average E-mails Per User Per Day
Growth Greater
Than 50%
14% 15%
47%
24%
Storage Growth
0 to 10%
Growth 26% to 50% Storage Growth
11% to 25%

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Page 5
Many Bad Things Can Happen…

6. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 6
e-Discovery is Driving Up Cost of Litigation
 Collection
• $1,500/PC
• $1,000/GB network files,
• $1,000/GB index & search
 Processing/culling (de-duplication, password cracking)
• $1,000/GB
 Review
• $200/hour @ 40 items/hour = $5/file or email
 Estimated Costs in U.S. Commercial Litigation:
• 2006 $1.923B
• 2007 $2.865B
Source: Socha Consulting
“I’m seeing discovery taking up 70% of cost of litigation” – Former New
Jersey Assistant Attorney General
“Too often it’s cheaper to settle early to avoid e-discovery costs, even when
we believe the claim has little merit” – General Counsel, Fortune 500
company

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Page 7
Insourcing Outsourced Discovery
In-House $$ Outside
Counsel and
Vendors
In-House $$ Outside
Counsel and
Vendors
E-Discovery Reference Model (source EDRM.net)
Traditional
E-Discovery
Practice)
Newer
E-Discovery
Best Practice

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Page 8
Factors Driving Strategy
Litigation Profile
Litigation history and forecast
Type of litigation
Anticipated caseload
Probably venues
Nature and sophistication of
opponents
Regulatory Compliance
Regulatory requirements
Regulatory environment
Regulatory discovery
requirements
Data privacy requirements
Sophistication and activity level
of regulators
Company Size and Use
Documents
Number of people
Number of locations
Quantity and distribution of
documents and data
Employee document use and
needs
Company culture
Industry
Size, type and nature
State of industry
Typical practices of peers
Litigation profile of peers
Multi-party litigation across
industry

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Page 9
Potential E-Discovery Activities to In-
Source
 ESI Data Mapping
 Preservation/Archiving
 Search
 Collection
 Culling/Dedupping
 Processing
 Review
 30(b)(6) Witness Development

10. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 10
Where Is the ESI?
E-Discovery Responsibility – Ideal ArchiveE-Discovery Responsibility – Ideal Archive
Server BackupServer Backup Client BackupClient Backup
Typical Archive SolutionsTypical Archive Solutions
Active Server Data
•Databases/Applications
•Email Server
•File Servers
Active Client Data
•Office Files
•Email (OST)
Inactive Server Data (Online)
•Data Warehouse
•Database Dump/Export
•Email on File Servers (PST)
Inactive Server Data (Online)
•Data Warehouse
•Database Dump/Export
•Email on File Servers (PST)
Inactive Client Data (Online)
•Email (PST)
Inactive Client Data (Online)
•Email (PST)
Historical Server Data (Offline)
•Backup Tapes
•Old Disks
Historical Server Data (Offline)
•Backup Tapes
•Old Disks
Historical Client Data (Offline)
•External Drives (Flash or Hard Disk)
•CD/DVD Copies
Historical Client Data (Offline)
•External Drives (Flash or Hard Disk)
•CD/DVD Copies
Litigation Holds Target More Than Records

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ESI Data Map
 Prepares Legal for “Meet and
Confer,” Early Case Assessment
 Primary elements
 Inventory of data sources (where?)
 Assigns primary “stewards” for collection and
potential 30(b)(6) depositions
 Determines accessibility of data
 Solutions range from simple spreadsheets to
real time custom applications
 Primary parties are Legal, IT with business unit
participation

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Page 12
Elements of a Legal Hold Strategy
Initial Repeat-able Defined Managed Optimizing
Notice
Notice is handled
in ad hoc fashion
Consensus on
format and process
Standard hold
notice and process
developed
Hold notices are
tracked in
automated system
Hold notice and
update is audited
Preservation
Preservation
systems vary by
application
Existing processes
and systems are
used for hold
Critical items held
with dedicated
systems
ESI types are
prioritized and
systems roadmap
developed
Holds are audited
and updated as
needed
Standard
Operating
Procedures
Preservation
process
determined as
needed for each
application
IT and RM
determine
appropriate
method for hold
All types have
process
documented
Retention
processes are
updated as new
systems are
brought online
Hold process is
audited
Search
Existing/built-in
systems used to
search data
General search
technologies
applied
Specific search
technologies used
for high-priority
applications
Various search
systems are
integrated
Unified enterprise
search is deployed
Identification
Determine
identifying
characteristics for
each type on
demand
Consensus is
developed for
generic
identification traits
ESI map is used to
identify data
Advanced systems
(fuzzy/proximity)
are implemented
Federated search
with flexible
identification is
issued

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Creating Defensibility
 Consistency
 Service, processes, structures should be centrally defined
and administered
 Have a defensible records retention policy and schedule
when deleting information
 Accuracy
 Spans all types of ESI and locations
 Pretest litigation hold process
 Verifiable
 Document hold communications
 Audit and log routine records destruction
 Transparency
 Show litigation hold is part of overall program
 Develop processes for preserving departing employees’
documents

14. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 14
Getting to a State of Litigation and
Regulatory Readiness
 No records retention/deletion
policy
 Unenforceable retention/deletion
policy
 Manual or employee-dependent
document retention processes
 No litigation hold processes
 Resource-intensive E-Discovery
processes
 Underground archival via local
copies in PSTs etc.
 Selective employee archival
 Inability to produce documents in
native format
 No control over document
expiration
 Up-to-date policy and process
 Policy enforcement via technology
 Automated collection, retention and
expiration of e-mail
 Robust litigation hold processes
 Efficient E-Discovery processes
with rapid discovery production
 ESI Preparedness Data Map
 Effective internal and external
litigation case management
 30(b)(6) prepared
 Archive containing documents of
record in native format
 Well-communicated policies for
employees

15. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 15
e-Discovery Really Isn’t About Saving…
 Do you know what you have?
 Do you know where it is?
 Can you search documents?
 Can you easily retrieve documents?
 Can you ensure you don’t delete what you
shouldn’t?
 Can you ensure you delete when you should?
 Can you do all the above easily, quickly,
defensible and cost effectively?
It’s all about control.

16. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
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The Last Word: Don’t Let Perfect Be the
Enemy of Good
 Perfect policies and discovery processes don’t exist
 Don’t get stuck on defining perfection at the
expense of execution
 Develop good policies, processes and practices
today
 Show the courts and regulators
 You have a policy
 You are taking reasonable efforts to follow your policy
 You have a discovery hold process which you periodically test
 You know what data you have where
 You destroy unneeded, older, non-litigation or compliance
related documents on a routine basis
 Improve your policies and processes over time

17. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
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About Contoural
Contoural is a leading provider of business and technology
consulting services focused on compliance, litigation readiness,
records retention, intelligent data management and storage
strategy.
 Experts on litigation readiness,
compliance, electronic records
retention, ILM and storage
 Address both ends of spectrum:
Attorneys, e-discovery experts,
records managers combined with
IT, archiving and storage
specialists on staff
 Bridge gap between policy
development and execution
 Recommended by Gartner, IDC,
ESG and other analysts
 Sells no products or document
warehousing services
 Team located across US
 Engagements across world

18. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
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Contoural On-site Seminar
Seminar Title: Best Practices for Saving E-mail and Other
Documents – Reducing Risk, Ensuring
Compliance and Lowering Costs
Length: 2 hours including Q&A
Who Should Attend:
 General Counsel
 Associate General Counsel and
other in-house legal counsel
 Legal Discovery Team
 Records Managers
 Chief Information Security Officers
 Records Managers
Cost: No charge for qualified prospects
 Human Resource, Finance and
Other Business Units
 Compliance Officers
 Audit
 Chief Information Officer
 Messaging Administrators
 Storage Administrators

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Page 19
For More Information – www.contoural.com
Current Webinar Series
Litigation Management Tools 101: A Non-technical Person’s Overview of
Litigation Management Tools – Piece-by-Piece or One-stop Shopping?
December 11, 2008 1:00pm Eastern/10:00am Pacific
White Papers
 How Long Should E-mail Be Save White Paper
 Federal Rules of Civil Procedure White Paper
 Impact of International Regulations White Paper
 Six Steps for Managing ESI White Paper
 10 Best Practices for Archiving White Paper
 What IT Can Do If You’re Going to Be Sued White Paper
Articles
 E-mail Archiving: Planning, Policies and Product Selection
 Are You Ready for New Compliance Rules
 Applications to Find and Classify Data
SearchExchange/Search Storage
 E-mail Archiving eBook Series

20. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
Page 20
Key Take Aways
 New environment requires litigation readiness
 Activities and level of effort is specific to your
organization’s profile and risk
 Readiness may take the form of a number of
activities
 The order you approach these activities will
vary
 Create a strategic roadmap for a high-level view
 Many organizations are in-sourcing part or a
majority of their e-discovery activities

21. CONTOURAL CONFIDENTIAL Copyright © 2008 May not be distributed or reproduced without written authorization.
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Thank You and Questions
 Reduce Risk
 Ensure Compliance
 Enable Litigation
Readiness
 Lower Costs
Contoural, Inc.
1935 Landings Drive
Mountain View, CA 940403
650-390-0800
markdiamond@contoural.com

22. Kazeon Confidential - DO NOT DISTRIBUTE
WhatWhat’s happening in the’s happening in the
eDiscovery space?eDiscovery space?
Karthik Kannan, VP Marketing & Business DevelopmentKarthik Kannan, VP Marketing & Business Development

23. Kazeon Confidential - DO NOT DISTRIBUTE
Kazeon’s Vision
To revolutionize the way enterprises manage
information by using Kazeon’s Information
Management Software to intelligently
discover, search, classify and act on
electronically stored information.

24. Kazeon Confidential - DO NOT DISTRIBUTE 24
eDiscovery Market TrendseDiscovery Market Trends
1. Corporations are bringing eDiscovery functions in-
house
2. “Inaccessible data” becoming more accessible
3. eDiscovery is becoming standard IT or Legal
budget item
4. Early Case Assessments a critical first step in
eDiscovery
5. eDiscovery is emerging as fundamental IT
infrastructure for enterprises
6. Geographically dispersed ESI – across Data
Center, Remote Offices, Mobile devices

25. Kazeon Confidential - DO NOT DISTRIBUTE 25
Top Considerations for SelectingTop Considerations for Selecting
In-house eDiscovery SoftwareIn-house eDiscovery Software
1. Legal Hold, Preservation, Retention
2. Data Integrity of ESI : ensuring NO Spoliation of data
and metadata
3. In-place Analysis and Review
4. Search Accuracy & Completeness
5. Desktop/Laptop eDiscovery without agents
6. Active content and Archive content eDiscovery
7. End-to-end risk reduction: Auditing, Chain-of-custody
8. Scalability & Performance
9. eDiscovery for Remote Offices and Federation
10.Data Map and Custodian Map across Enterprise

26. Kazeon Confidential - DO NOT DISTRIBUTE
Kazeon Solution for eDiscoveryKazeon Solution for eDiscovery
 Enables Enterprises and Corporate Legal and
IT teams:
– End-to-end eDiscovery workflow from
Collection, Legal Hold, Analysis to Review
– In-house Early Case Assessment
– In-house and In-place Analysis and Review
– Legal Hold workflow and Process
• In-Place legal hold and Preservation
– Targeted Collection & Culling
– Significantly reduce eDiscovery costs (> 90%)
– Eliminate Risk in eDiscovery
26

27. Kazeon Confidential - DO NOT DISTRIBUTE
Electronic Discovery Reference Model (EDRM)Electronic Discovery Reference Model (EDRM)
27
Kazeon provides solutions for both Proactive
and Reactive eDiscovery
Information
Management
Information
Management
VOLUME
Source: EDRM.NET
Proactive eDiscovery
IdentificationIdentification
PreservationPreservation
CollectionCollection
ProcessingProcessing
ReviewReview
AnalysisAnalysis
ProductionProduction PresentationPresentation
RELEVANCE
Reactive eDiscovery
Legal Users
Paralegal
Attorneys

28. Kazeon Confidential - DO NOT DISTRIBUTE
Why Kazeon for In-House eDiscovery?
 Kazeon is FIRST to market with end-to-end
eDiscovery solution In-house and In-place for
enterprises
 Significant REDUCTION in eDiscovery Costs by
reducing data going to service providers and
number of legal professionals required
 Significant REDUCTION in risk in eDiscovery
process and automation of eDiscovery to
reduce manual work and human errors
 Defensible, Auditable, and systematic In-House
and In-Place eDiscovery process from
Collection, Legal Hold to Analysis, Review
 Ability to assess merits of lawsuit – to settle or
not settle; Early Case Assessments
 Significant IMPROVEMENT in response time to
litigation requests and REDUCTION in review
workload and cost
 Over 200 customers
 Ranked #3 by revenue in eDiscovery software
market
 Over 3000TB and 50B documents under
eDiscovery management
 Pioneered concept of Proactive and In-place
eDiscovery
 Recognized as 2008 “Hot Company” by Network
Product Guide
 Raked POSITIVE by Gartner Market Scope for
eDiscovery 2007; Top two eDiscovery companies
in Gartner Information Access Magic Quadrant,
2007
 Ranked in 5 Top Providers in 2008 Socha-
Gelbmann (EDRM) Survey
 Named 2008 Best Product Winner by Network
Product Guide ; Kazeon in KM World’s “100
Companies that Matter”
 Court-proven eDiscovery software and process
from Kazeon
Kazeon Fast Facts:Kazeon Fast Facts:
28