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92 Reasons to Delete Data Need a reason to begin that data remediation project? How about 92 of them?

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92 Reasons to Delete DataNeed a reason to begin that data remediation project? How about 92 of them?

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The days of putting that data remediation project on the back-burner are over. Sure, storage has never been cheaper. But the downstream costs – data discovery, legal review and data breaches, to name just a few – have

never been higher.

Don’t believe it?

The “digital universe” is growing rapidly; digital disposal is necessary to mitigate at least some of the problem.

1. Size of the “digital universe” in December 2012: 2,837 exabytes; Estimated size of the “digital universe” by 2020: 40,000 exabytes (EB). That’s 5200 GB per person on the planet. http://www.zdnet.com/article/storage-in-2014-an-overview/

2. By 2020, it is estimated the digital universe will reach 44 zettabytes (4,000 EB) of data. http://www.emc.com/en-us/big-data/index.htm

3. Leading pain points listed by managers and IT professionals’ biggest challenges (2014) top two: http://www.zdnet.com/article/storage-in-2014-an-overview/

a. Managing storage growth 79%

b. Designing, deploying and managing backup, recovery and archives solutions 43%

4. Average price per gigabyte of hard drive storage (2016): $0.019 (down from $11.00 in 2000, causing people to store more). http://www.statisticbrain.com/average-cost-of-hard-drive-storage/

5. Average price of a gigabyte of RAM (2016): $4.37 (down from $189.00 in 2005, causing people to store more). http://www.statisticbrain.com/average-historic-price-of-ram/

6. Number of text messages sent each month (2014): 561 billion. http://www.statisticbrain.com/text-message-statistics/

7. Percentage of sent emails that are spam (2016): 80%. http://www.statisticbrain.com/internet-statistics/

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The “digital universe” is growing rapidly (continued)...

8. Total number of emails sent daily (2016): 210 billion. http://www.statisticbrain.com/internet-statistics/

9. Smartphone traffic will exceed PC traffic by 2020. In 2015, PCs accounted for 53 percent of total IP traffic, but by 2020 PCs will account for only 29 percent of traffic. Smartphones will account for 30 percent of total IP traffic in 2020, up from 8 percent in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

10. Internet video surveillance traffic nearly doubled in 2015, from 272 petabytes per month at the end of 2014 to 516 petabytes per month in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

11. Internet video surveillance traffic will increase tenfold between 2015 and 2020. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

12. Global IP traffic will nearly triple from 2015 to 2020 with 72.5 EB per month in 2015 to 194.4 EB in 2020. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

13. Average number of devices per capita globally in 2015: 2.21. Projected 2020: 3.39. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

14. Average number of devices per capita in the US projected 2020: 12.3. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

15. The internet of things will cause “machine to machine” connections to grow 250%, from 4.9 bn in 2015 to 12.2 bn in 2020. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

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16. In a 2013 survey of 700 large North American enterprises, IDC found that fewer than 1% had achieved the highest level of Big Data usage – where the use of big data is operationalized and continuously providing process improvement realization. http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

17. According to IDC, only about 1% of the digital universe is considered “high-value data” (2014). http://www.emc.com/leadership/digital-universe/2014iview/high-value-data.htm

18. Data analytics software is a $40 billion market and growing 10% a year (2014) http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

19. While most of the digital universe (almost 70%) is created by the actions of individuals – taking pictures, watching digital TV, being captured on surveillance cameras in airports – enterprises have contact with, and therefore liability and responsibility for more of it (85%), such as account information, email addresses, location stamps, and so on. (2014) http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

20. In 2013, enterprises were estimated to have generated 1.5 zettabytes of data. http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

21. In 2014 the typical IT professional was estimated to be responsible for 230 gb of data. By 2020, it is expected to be 1231 gb. http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

Too much data is being kept.

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Keeping unnecessary data is expensive. 22. Assuming a 1% daily change rate, 1

terabyte of data that needs to be backed up becomes 13 terabytes in 1 year. http://www.druva.com/blog/true-costs-remote-office-backup/

23. Assuming a 1% daily change rate and a 20% increase in source data per year, that 1 terabyte of data becomes more than 700 terabytes in 7 years. http://www.druva.com/blog/true-costs-remote-office-backup/

24. Total first year cost to back up 1 terabyte of data: $29,534. http://www.druva.com/blog/true-costs-remote-office-backup/

25. Total seven year cost to back up 1 terabyte of data $189,189. http://www.druva.com/blog/true-costs-remote-office-backup/

Storing unnecessary paper is expensive, both onsite and offsite.

26. Typical Iron Mountain Price to store paper offsite $1.75 per carton month. http://www.charlottealliance.org/pdf/iron-mountain/2015001004%20-%20Iron%20Mountain%20Pricing.pdf

27. Average office property “asking” rent – Chicago IL $23.24/sq. ft. /year (2016). http://www.loopnet.com/Chicago_Illinois_Mar-ket-Trends?Trends=AskingPricesFS,SalePricesFS,-TotalAvailableForSaleFS,NumberOfListingsFS,Profi-leViewsFS,TotalNumOfUnitsFS,TotalSFAvailableFS,D-aysOnMarketFS,AskingRentsFL&PropertyTypes=Mul-tifamily,Office,Industrial,Retail

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Security is a growing concern. (And data that has been disposed cannot be stolen).

28. There were a total of 780 breaches with a total of nearly 178 million records stolen in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

29. The number of records stolen per data breach averaged 228 thousand in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

30. The average cost paid for each sensitive lost or stolen record increased 6 percent from 2015 to 2016. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

31. In 2015 there was a 458% increase in the number of times hackers searched internet of things connections for vulnerabilities. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

32. Spear-phishing campaigns targeting employees increased 55% in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

33. Malware attacks nearly doubled to 8.19 billion in 2015. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

34. Eighty-nine percent of cyber attacks involve financial or espionage motivations. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

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Security is a growing concern (continued)...

35. Sixty percent of data stolen was through web protocols, file transfer and tunneling protocols, or email. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

36. Two-thirds of breaches involved traditional corporate networks, and cloud break-ins accounted for the remaining one-third. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html

37. Ninety percent of identity thefts actually use information from printed sources, rather than those found online. http://www.cor365.com/2016/08/31/privacy-security-convenience-3-essential-paper-shredding-tips-for-businesses

38. IDC estimates that 43% of the “digital universe” requires some level of security, from privacy protection to full-encryption “lockdown.” http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

39. IDC estimates that 52% of the part of digital universe that requires some level of security is not protected. http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

40. Security products and services are a $50 billion market (2014). http://www.emc.com/leadership/digital-universe/2014iview/it-imperatives.htm

41. In 2015, 60 percent of all attacks were carried out by insiders, either ones with malicious intent or those who served as inadvertent actors. In other words, they were instigated by people you’d be likely to trust. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEJ03320USEN

42. The average client organization monitored by IBM Security Services experienced 52,885,311 security events; 1,157 attacks and 178 incidents. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEJ03320USEN

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Data security is a concern at the highest levels of organizations. 43. Ninety-four percent of 700 C-suite

executives interviewed believe that their respective companies will experience a cybersecurity incident in the next two years. http://www.jdsupra.com/legalnews/the-c-suite-s-perspective-on-10443/

44. Only sixty-five percent of C-Suite executives expressed a confidence in their cybersecurity plans. http://www.jdsupra.com/legalnews/the-c-suite-s-perspective-on-10443/

45. The first notable case against the C-Suite following a data incident was In re Heartland Payment Systems, Inc. Securities Litigation. In short, the plaintiffs alleged that the C-Suite concealed a cyberattack. The court dismissed the lawsuit, recognizing that “the fact that a company faces certain security problems does not of itself suggest that the company does not value data security.” Central to the court’s analysis in Heartland were the actions taken by the CEO and CFO before and after the data incident.

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Data breaches are expensive, and increasingly expensive when more data is taken. 46. The average total cost of a data breach is

now $7.01 million (2016) in the US, up from $3.79 million in 2015. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

47. There has been a 29% increase in total cost of data breach since 2013. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

48. $158 is the average cost per lost or stolen record. Basically, every record you don’t dispose of costs $221 in the US if there’s a breach. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

49. The biggest cost is lost business. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

50. Most data breaches continue to be caused by criminal and malicious attaches. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

51. The more records lost, the higher the cost of the breach. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

52. Notification costs alone in the U.S. were $0.59 per record. http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=SEL03094WWEN

53. Forty-seven states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands each have enacted their own legislation requiring private, governmental or educational entities to notify individuals of security breaches of information involving personally identifiable information. http://www.ncsl.org/research/telecommunications-and-information-technology/security-breach-notification-laws.aspx

54. Sony settled an employment class action for $4.5 million that alleged poor security practices that resulted in the release of their personal information (in the North Korean hack) for $10,000 per individual plus $1,000-$3,000 for the initial named plaintiffs plus $3.4 million for attorneys. http://www.jdsupra.com/legalnews/sony-settles-employees-class-action-13446/

55. The 2013 Nieman Marcus data breach exposed the credit card data of 350,000 customers. This led to fraudulent charges occurring in 9,200 of those customer accounts. A class-action lawsuit followed in which customers sought $5 million in damages. http://searchsecurity.techtarget.com/answer/Will-the-Neiman-Marcus-data-breach-lawsuit-set-a-precedent

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Records and information programs are overmatched.

56. Eighty-seven percent of organizations (and 95% of large organizations) have a records and information management program. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

57. Nearly 80% of organizations cite a keep everything culture as a key impediment to implementation. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

58. Fifty percent of organizations indicate that employees never receive RIM training. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

59. Only 8% of organizations report that RIM metrics for ESI are mature, and only an additional 29% report that ESI metrics are improving. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

60. Over 60% of organizations indicate that unneeded ESI is not regularly deleted. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

61. Only 13% of organizations consider their records management planning to be mature. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

62. A third of organizations indicate that retention is not automated and another quarter are unsure of current practices (e.g. backup media are not rotated). http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

63. Very few organizations (only 3 to 19%, depending on format) have mature lifecycle management processes for new types and locations of information (e.g. social media). http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

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There are a variety of impediments to records disposition.

64. At 26% of organizations, employees receive no records management training. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

65. Only 7% of organizations have fully automated systems to identify paper and analog records stored on-site as eligible for destruction. 26% more have partially automated but 63% are fully manual. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

66. Only 15% of organizations have fully automated systems to identify paper and analog records stored off-site as eligible for destruction. 36% more have partially automated and 43% are fully manual. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

67. At 20% of organizations, “other groups” (business ops, legal, compliance, etc.) must approve the destruction of ancillary/paper non-ESI and 11% more must notify other groups. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

68. At 37% of organizations, “other groups” (business ops, legal, compliance, etc.) must approve the destruction of ESI and 8% more must notify other groups. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

69. Seventy-five percent of organizations have no automated tools to delete/destroy eligible information. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

70. Sixty-four percent of organizations “cannot get users to let go of the information under their control.” http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

71. IT cannot or will not delete the info when asked at 28% of organizations. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

72. Deletion of eligible ESI is more routine and efficient than 3 years ago at only 53% of organizations. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

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Preservation and legal holds are still imperfect.

73. Information that is eligible to be destroyed cannot be readily separated from legal holds at 56% of organizations. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

74. More information than necessary is typically retained due to how legal holds are written or applied at 70% of organizations. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

75. More than half of organizations over-preserve information pursuant to legal holds. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

76. Half over-preserve e-mails, IMs and electronic communications. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

77. Sixty-eight percent over-preserve content/documents from ECM, 53% from collaboration tools (SharePoint), 65% network files, 56% desktop/laptop files, 62% from backup tapes. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

78. Sixty-one percent of organizations do not regularly delete eligible ESI using standardized processes. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

79. Important/official ESI cannot be located and used when needed at 78% of organizations. http://www.ironmountain.com/Knowledge-Center/Reference-Library/View-by-Document-Type/White-Papers-Briefs/C/Compliance-Benchmark-Report.aspx?TempAuth=True

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Litigation and electronic discovery are expensive, but cost less when there is less data to collect and review.

80. There are approximately 303,000 federal civil filings each year. http://www.uscourts.gov/statistics-reports/federal-judicial-caseload-statistics-2014

81. U.S. total tort costs were $264.6 billion (2010). That’s 1.82% of GDP and $857 for every American. http://www.casact.org/library/studynotes/Towers-Watson-Tort-Cost-Trends.pdf

82. Median cost of e-discovery production per case (2012): $1.8 million. http://www.rand.org/content/dam/rand/pubs/monographs/2012/RAND_MG1208.pdf (page 17)

83. Twenty to 50 percent of all costs in federal civil litigation are incurred to perform discovery (2010). http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1486&context=dlj (page 17)

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Electronic discovery risk continues to evolve.

84. Sixty-two percent of American companies have been required to preserve or collect data from a mobile device in the past 12 months (2015). http://www.nortonrosefulbright.com/files/20150514-2015-litigation-trends-survey_v24-128746.pdf

85. Forty-six percent of those who did collect data from a mobile device had to do so in 25% or more of their matters. http://www.nortonrosefulbright.com/files/20150514-2015-litigation-trends-survey_v24-128746.pdf

86. Seventy-four percent of law departments rely primarily on self-preservation at least some of the time, despite that fact that they feel they cannot always rely on/trust individuals, that it reduces certainty and defensibility and increases risk and that IT is more effective. http://www.nortonrosefulbright.com/files/20150514-2015-litigation-trends-survey_v24-128746.pdf

87. More than half of big companies (57%) use Technology Assisted Review, though most (58%) use if for less than half of their cases. http://www.nortonrosefulbright.com/files/20150514-2015-litigation-trends-survey_v24-128746.pdf

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Improper preservation is against the letter and spirit of e-discovery law and can result in sanctions and adverse inferences. There has been a string of cases that continues to the present day.

88. Federal Rules of Civil Procedure Rule 37(e) Failure to preserve electronically stored information. “If electronically stored information that should have been preserved in the anticipation or conduct of litigation is lost because a party failed to take reasonable steps to preserve the information, and the information cannot be restored or replaced through additional discovery, the court may:Upon a finding of prejudice to another party from loss of the information, order measures no greater than necessary to cure the prejudice;Only upon a finding that the party acted with the intent to deprive another party of the information’s use in the litigation,

a. presume that the lost information was unfavorable to the party;

b. instruct the jury that it may or must presume the information was unfavorable to the party; or

c. dismiss the action or enter a default judgment.”

89. Zubulake v. UBS Warburg, LLC, 229 F.R.D. 422 (S.D.N.Y. 2004) (“Zubulake V”): “Counsel should instruct all employees to produce electronic copies of their relevant active files.”

90. Micron Tech., Inc. v. Rambus, Inc., No. 13-1294 (Fed. Cir. 2014): The court found that months after Rambus asked counsel to identify potential litigation targets, Rambus destroyed “1269 of 1270 email back-up tapes and roughly 400 boxes of documents.” Rambus’s stated intent was to get ‘battle ready’ and to further Rambus’s “litigation strategy by frustrating the fact-finding efforts of parties adverse to Rambus.”

91. University of Montreal Pension Plan v. Bank of America Securities, LLC, 685 F. Supp. 2d 456 (S.D.N.Y. 2010): Judge Scheindlin issued sanctions because parties had neglected their duty to preserve evidence.

92. Arbor Realty Funding, LLC v Herrick, Feinstein LLP, 2016 NY Slip Op 05065 [140 AD3d 607]: An appeals court in New York upheld “an adverse inference charge at trial as to the spoliated evidence, awarding monetary discovery sanctions in the amount of $10,000, and otherwise affirmed, without costs.”

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In summary, data remediation can greatly reduce your organization’s costs and risk. FTI Technology can

develop and implement information governance solutions that reduce corporate risk, cut storage costs, secure data, improve the e-discovery process and enable faster and deeper insight into data. For more information on how FTI Technology can help you, please visit www.ftitechnology.com.

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92 Reasons to Delete Data

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About FTI ConsultingFTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprisevalue in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring.

www.fticonsulting.com

[email protected]

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Australia +61 (2) 9235 9300Hong Kong +852 3768 4584

Technology Segment 92 Reasons to Delete Data