Webcasts

Why On-Premise eDiscovery Is Bringing Economic Security Back to eDiscovery

For years, the legal technology market seemed to move in one direction: to the cloud.

Software vendors promised simplicity, scalability, and reduced infrastructure management. Many organizations embraced SaaS platforms as the future of eDiscovery, and for good reason. Cloud-based solutions made powerful technology accessible to more legal teams than ever before.

But something interesting is happening.

Organizations are beginning to ask a different set of questions.

Instead of simply asking, “What eDiscovery processing and review platforms can we move to the cloud?” legal teams are increasingly asking:

  • What is our total cost of ownership?
  • How much control do we need to have over our data?
  • Are we paying for capacity we don’t use?
  • Can our technology investments create business value instead of just expense?

These questions are driving renewed interest in on-premise eDiscovery solutions.

In the interview with Cat Casey, the TechnoCat, CloudNine’s VP of Sales and Customer Success Kari Byers discusses why these economic conversations are happening and what it means for legal teams, law firms, government agencies, and service providers.

The Economics of eDiscovery Are Changing

For many organizations, eDiscovery costs have become increasingly difficult to predict.

Data volumes continue to grow. Modern communication platforms generate more information than ever before. At the same time, hosting fees, user-based licensing, analytics costs, and ongoing storage expenses can compound over the life of a matter.

What initially appears to be a manageable monthly expense can become a significant long-term operational cost where often times the case value is much less that those monthly/annual costs.

As organizations evaluate these realities, many are discovering that infrastructure decisions are no longer simply technology decisions. They are business decisions.

Turning eDiscovery Into a Profit Center

One of the most compelling themes discussed in the video is the growing number of law firms and eDiscovery service providers that are transforming eDiscovery from a cost center into a revenue-generating capability.

Traditionally, technology investments in legal operations were viewed as necessary expenses.

Today, many law firms and service providers are approaching the equation differently now that most eDiscovery software providers are moving to SaaS or cloud-only options.

When organizations own and manage their review environment, they often gain greater flexibility in how they structure client engagements, control operating expenses, and deliver services.

Rather than continually absorbing external hosting costs, they can leverage their infrastructure investments to support multiple matters and clients over time.

The result is a business model that can improve margins while providing clients with predictable pricing and greater transparency.

The Return of Deployment Choice

Perhaps the most important takeaway is not that on-premise technology is replacing cloud technology. The takeaway is that organizations increasingly want options.

The legal industry has matured beyond one-size-fits-all technology strategies.

Different organizations have different priorities:

  • Some prioritize scalability.
  • Some prioritize security.
  • Some prioritize cost certainty.
  • Some prioritize operational control.
  • Many require a balance of all four.

The most successful technology strategies are those that align deployment models with business objectives rather than following one dominant eDiscovery review platform.

Questions Every Legal Team Should Be Asking

As data volumes continue to grow and technology budgets face increasing scrutiny, organizations should evaluate:

  1. Do we fully understand our long-term eDiscovery costs?
  2. Are our current deployment models aligned with our security requirements?
  3. Do we have sufficient flexibility to support future growth?
  4. Could our technology investments create operational or financial advantages?
  5. Are we choosing technology because it fits our needs or because it follows the singular dominant eDiscovery platform?

These questions are becoming increasingly important as legal teams seek greater efficiency, predictability, and control.