Tag Archives: compliance

The Global De-Centralized Enterprise: An Un-Met eDiscovery Challenge

Enterprises with data situated within a multitude of segmented networks across North America and the rest of the world face unique challenges for eDiscovery and compliance-related investigation requirements. In particular, the wide area networks of large project engineering, oil & gas, and systems integration firms typically contain terabytes of geographically disparate information assets in often harsh operating environments with very limited network bandwidth. Information management and eDiscovery tools that require data centralization or run on expensive and inflexible hardware appliances cannot, by their very nature, address critical project information in places like Saudi Arabia, China, or the Alaskan North Slope.

Despite vendor marketing hype, network bandwidth constraints coupled with the requirement to migrate data to a single repository render traditional information management and eDiscovery tools ineffective to address de-centralized global enterprise data. As such, the global decentralized enterprise represents a major gap for in-house eDiscovery processes, resulting in significant expense and inefficiencies. The case of U.S. ex rel. McBride v. Halliburton Co. [1]  illustrates this pain point well. In McBride, Magistrate Judge John Facciola’s instructive opinion outlines Halliburton’s eDiscovery struggles to collect and process data from remote locations:

Since the defendants employ persons overseas, this data collection may have to be shipped to the United States, or sent by network connections with finite capacity, which may require several days just to copy and transmit the data from a single custodian . . . (Halliburton) estimates that each custodian averages 15–20 gigabytes of data, and collection can take two to ten days per custodian. The data must then be processed to be rendered searchable by the review tool being used, a process that can overwhelm the computer’s capacity and require that the data be processed by batch, as opposed to all at once. [2]

Halliburton represented to the court that they spent hundreds of thousands of dollars on eDiscovery for only a few dozen remotely located custodians. The need to force-collect the remote custodians’ entire set of data and then sort it out through the expensive eDiscovery processing phase instead of culling, filtering and searching the data at the point of collection drove up the costs.

Despite the burdens associated with the electronic discovery of distributed data across the four corners of the earth, such data is considered accessible under the Federal Rules of Civil Procedure and thus must be preserved and collected if relevant to a legal matter. However, the good news is that the preservation and collection efforts can and should be targeted to only potentially relevant information limited to only custodians and sources with a demonstrated potential connection to the litigation matter in question.

This is important as the biggest expense associated with eDiscovery is the cost of overly inclusive preservation and collection. Properly targeted preservation initiatives are permitted by the courts and can be enabled by adroit software that is able to quickly and effectively access and search these data sources throughout the enterprise. The value of targeted preservation is recognized in the Committee Notes to the FRCP amendments, which urge the parties to reach agreement on the preservation of data and the key words, date ranges and other metadata to identify responsive materials. [3]  And In re Genetically Modified Rice Litigation, the court noted that “[p]reservation efforts can become unduly burdensome and unreasonably costly unless those efforts are targeted to those documents reasonably likely to be relevant or lead to the discovery of relevant evidence.” [4]

However, such targeted collection and ECA in place is not feasible in the decentralized global enterprise with current eDiscovery and information management tools. What is needed to address these challenges for the de-centralized enterprise is a field-deployable search and eDiscovery solution that operates in distributed and virtualized environments on-demand within these distributed global locations where the data resides. In order to meet such a challenge, the eDiscovery and search solution must immediately and rapidly install, execute and efficiently operate in a localized virtualized environment, including public or private cloud deployments, where the site data is located, without rigid hardware requirements or on-site physical access.

This is impossible if the solution is fused to hardware appliances or otherwise requires a complex on-site installation process. After installation, the solution must be able to index the documents and other data locally and serve up those documents for remote but secure access, search and review through a web browser. As the “heavy lifting” (indexing, search, and document filtering) is all performed locally, this solution can effectively operate in some of the harshest local environments with limited network bandwidth. The data is not only collected and culled within the local area network, but is also served up for full early case assessment and first pass review on site, so that only a much smaller data set of potentially relevant data is ultimately transmitted to a central location.

This ground breaking capability is what X1 Rapid Discovery provides. Its ability to uniquely deploy and operate in the IaaS cloud also means that the solution can install anywhere within the wide-area network, remotely and on-demand. This enables globally decentralized enterprises to finally address their overseas data in an efficient, expedient defensible and highly cost effective manner.

If you have any thoughts or experiences with the unique eDiscovery challenges of the de-centralized global enterprise, feel free to email me. I welcome the collaboration.

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[1] 272 F.R.D. 235 (2011)

[2] Id at 240.

[3] Citing the Manual for Complex Litigation (MCL) (4th) §40.25 (2)):

[4] 2007 WL 1655757 (June 5, 2007 E.D.Mo.)

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Filed under eDiscovery & Compliance, Enterprise eDiscovery

The Future for eDiscovery: Social Media and the Cloud

Greetings and welcome to all. This is the inaugural post of Next Generation eDiscovery, a blog that will focus on legal, technical and compliance issues related to the collection, preservation and early case assessment of social media and other cloud-based data. To provide some context, the team here at X1 Discovery is experienced in developing and supporting technology for collecting electronic evidence in the enterprise to meet eDiscovery and investigation requirements. Many of us hail from Guidance Software, the developer of EnCase, which is the leading eDiscovery and investigative solution for collecting from hard drives, both standalone and within the enterprise. And now we turn our focus to current trends and the future.

And the future for eDiscovery is about social media and the cloud. In fact, it seems like just this year when social media became a compelling issue in eDiscovery and is reaching critical mass given the level of rising discourse. With over 700 million Facebook users and 200 million people with Twitter accounts, evidence from social media sites can be relevant to just about every litigation dispute and investigation matter. Social media evidence is widely discoverable and generally not subject to privacy constraints when established to be relevant to a case, particularly when that data is held by a party to litigation or even a key witness.

It seems like in recent months there has been much talk in the eDiscovery and digital investigation fields about social media, mostly outlining the scope of the problem and the need to put corporate policies and procedures in place concerning social media.  That discussion is an important first step, but it’s time for actual solutions in terms of technical, legal and investigation techniques. This blog will seek to identify and foster discussion points, educate, and even pontificate at times but also learn from our readers, customers and non-customers alike. We look forward to the dialogue.

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Filed under Preservation & Collection