Saturday, May 21, 2011

Gartner Predicts eDiscovery Market to Reach $1.5B in 2013

The following comes from an Evan Koblentz article published by Law.com on May 23, 2011.

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The worldwide electronic discovery market saw revenue of $889 million in 2009 and will reach $1.5 billion in 2013, technology research firm Gartner predicted this month.

Upcoming trends in vendor consolidation, industry standards, and a focus on data integration will all be signs of a maturing and increasingly mainstream market, Gartner analysts John Bace and Debra Logan said in their May 13 report, "Magic Quadrant for E-Discovery Software."

The analysts see five leaders in e-discovery: Autonomy, Clearwell Systems, FTI Technology, Guidance Software and kCura. Autonomy and Clearwell both expanded further last week, with the former buying much of archiving specialist Iron Mountain's product lineup on Monday for $380 million and the latter being acquired by data management giant Symantec on Thursday for $390 million.

A quarter of all e-discovery companies will be consolidated by 2014, Bace and Logan said, and mainstream IT companies are expected to get involved. "We've had interest from [Hewlett-Packard], as they've announced information governance at least," via a partnership with Clearwell established in January 2008, Logan said. "Will Oracle do something? And certainly anyone who sells storage will have to do something with this," along with Microsoft which already has email archiving technology, she said.

Bace and Logan also said customers should pay attention to challengers EMC, IBM, and Nuix. (They also put Symantec in the challengers category, but its situation may change because of the Clearwell deal, and a new report about that is being prepared, they said.

Likely acquisitions targets include the companies in Stamford, Conn.-based Gartner's industry visionaries category -- AccessData Group, CaseCentral, Catalyst Repository Systems, CommVault, Exterro, Recommind and ZyLab, Logan added.

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