1. 5 REASONS TO CLEAN UP THE DIGITAL LANDFILL Presentation to Boston ARMA September 12, 2011 Brent G. Stanley

2. WHAT IS A DIGITAL LANDFILL?  Repositories containing data which has unknown composition, usefulness, value, or risk  Unstructured and semi-structured data  Fileservers, email servers, content management environments (SharePoint), ECM environments (Documentum et al)  Edge of network (laptop drives, desktop drives, remote office servers)  Structured data (Oracle et al)  Backup tapes  Cloud storage, Managed Service Providers (MSP’s)  Could represent a significant cost and liability risk to the enterprise  Growing at exponential rates  Average employee generates __GB/year of new data and average enterprise has __ years of legacy data comprising __ GB of data

3. TYPICAL COMPOSITION OF A DIGITAL LANDFILL Trash 10-30% Records Duplicates 20-30% Convenience Information 10-30%

4. 5 REASONS TO CLEAN UP 1. Infrastructure Cost Containment 2. E-Discovery Cost and Risk Containment 3. Information Security Cost Containment 4. General Employee Content Search Efficiency 5. Business Intelligence

5. 1. INFRASTRUCTURE COST CONTAINMENT  All-in cost for managing, securing and protecting data  All copies (primary, secondary, tertiary, disaster recovery, continuity of business)  Bricks and mortar  People  Software  Hardware  Bandwidth  Cost range: $15-50 per GB per year (declining)  Hard cost savings

6. 2. E-DISCOVERY COST AND RISK CONTAINMENT  Average costs for suits  Small $____; Medium $____; Large $____  Aggregate as a percent of annual sales for highly litigated verticals: 0.1 – 0.4%  Hard cost savings Identification ProcessingPreservation Presentation Production Collection Review Analysis

7. 3. INFORMATION SECURITY COST CONTAINMENT  Content containing sensitive or restricted information which should be more tightly managed  PII, company financials, audit data, compliance data, strategic planning data, contracts  Event Types  PII theft or inadvertent release - $170 per record  Sensitive and restricted information release – compromised trade secrets and brand risk  Quantification  3-year rolling average cost  Peer average  %of sales: 0.1-0.3%  Hard cost savings

8. 4. GENERAL EMPLOYEE CONTENT SEARCH EFFICIENCY  Time spent by average employee hunting for content: 24% (IDC)  If content is cleaner and better identified, this can be conservatively reduced by 3-5%  Can be considered soft or hard cost savings  Soft savings if employee time is ‘sunk cost’  Hard or partial hard savings if opportunity cost is considered

9. 5. BUSINESS INTELLIGENCE  Decision making  Ability to make best decision is to know how they were made in the past  Data quality  Data that is not clean or incomplete compromises the ability to control cost and risk and optimize organizational value  Example: Insurance Claims  Legacy claims documents are sitting as TIFF or PDF images across the digital landfill  Claims contain data that is hidden and obscure to the rest of the organization and constitutes opportunity (raising premiums) as well as risk (over-paying a claim, insuring those who should not be insured, failure to comply with regulatory obligations).  Critical to running a thriving business

10. INPUTS FOR THE BUSINESS CASE CategoryMetricValueNotes Infrastructure Cost$/GB/Year$25.00Provided by Client Legacy Data: File Stores, Email, Edge-of-NetworkTB250Provided by Client Go Forward Data: File Stores, Email, Edge-of-NetworkTB/Year25Provided by Client Average Employee Labor Cost$/Year$75,273Provided by Client Knowledge Collection (Claims Mgmt.)/Search, Business as Usual % Time/Year/Employee4.00%Agreed Default Knowledge Collection (Claims Mgmt.)/Search, Post- Processing% Time/Year/Employee1.00%Agreed Default Classification CategoriesNumber20Agreed Default Number of EmployeesNumber3500Provided by Client Initial Disposition, Legacy DataPercentage30%Agreed Default Year 2-3 Disposition, Legacy DataPercentage10%Agreed Default Litigation, Investigation and Audit% of Annual Revenue0.20%Agreed Default Security Risk Cost% of Annual Revenue0.10%Agreed Default Annual Revenue$6,400,000,0002010 Financials

11. ROI CALCULATIONS

12. SUMMARY  Leaving the digital fill alone and allowing it to grow unabated creates a toxic mess that must eventually be dealt with  World-class organizations will figure out how to extract business value and improve competitive positioning  Quantification of the 5 reasons is possible and can create an attractive ROI  Technology and services are available to accomplish this objective

13. REFERENCE INFORMATION  Cost-Effective Big Data Retention Enables Better Analytics http://www.dbta.com/Articles/Editorial/Trends-and-Applications/Cost-Effective-Big-Data- Retention-Enables-Better-Analytics-75457.aspx http://www.dbta.com/Articles/Editorial/Trends-and-Applications/Cost-Effective-Big-Data- Retention-Enables-Better-Analytics-75457.aspx  How much would it cost to store 4TB of data using Amazon's S3 service?  4TB would cost about $340/month. 4TB = 4,000 GB. At that service level (99.99%durability and more than 1TB but less than 49TB), the price is $.083/GB. $.083 times 4,000 is $332. It would also cost you $400 to upload the data in the first place.  http://www.emc.com/collateral/analyst-reports/idc-extracting-value- from-chaos-ar.pdf http://www.emc.com/collateral/analyst-reports/idc-extracting-value- from-chaos-ar.pdf