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The e-discovery industry is on the precipice of major change yet again, and this time it is all about security. What will distinguish the winners from the losers in the next few years will be an organization's ability to do one of three things: consolidate, innovate or reinvent.
Consolidation is clearly the strategy of larger service providers like DTI, Epiq and Consilio, which now sit atop the “revenue castle” as the biggest players in the space. Innovation remains a viable option, especially for up-and-coming companies with proprietary cloud technology like Everlaw's Disco, Driven's One or Logikcull.
The innovation angle may be more challenging, however, for middle-market e-discovery vendors (roughly $30-$60MM/year), which do not want to sell to larger companies and are entrenched in Relativity service. These providers, as well as some law firms who still use Relativity to generate profit for the firm, are wisely fearful of what kCura directly offering “a Relativity license through kCura using Microsoft Azure to deploy on a cloud infrastructure” will do to their businesses. A third option for growth (or survival) is reinvention.
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