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17.8.2017 Gartner Reprint https://www.gartner.com/doc/reprints?id=1-3JGDXHH&ct=161006&st=sb 1/34 LICENSED FOR DISTRIBUTION (https://www.gartner.com/home) Magic Quadrant for Enterprise Information Archiving Published: 05 December 2016 ID: G00294240 Analyst(s): Alan Dayley, Julian Tirsu, Garth Landers, Shane Harris Summary This Magic Quadrant evaluates the vision and ability to execute of vendors focused on compliance, discovery and reference use cases for archive data. I&O leaders can use this research to identify vendors that provide archiving for email, social media, IM, files and other content types. Strategic Planning Assumption By 2021, over 35% of email archiving for regulatory compliance and retention management will be done through the native email platform, up from 10% today. Market Definition/Description This document was revised on 8 December 2016. The document you are viewing is the corrected version. For more information, see the Corrections (http://www.gartner.com/technology/about/policies/current_corrections.jsp) page on gartner.com. Note: The weighting for criteria was adjusted in this year's Magic Quadrant, resulting in more movement among vendors' "dot" placements that has normally occurred in past revisions. Please see the Evaluation Criteria section to view the criteria weightings. Enterprise information archiving (EIA) incorporates products and solutions for archiving user messaging content (such as email, IM, and public and business social media data) and other data types (such as data stored in enterprise file synchronization and sharing [EFFS], Microsoft SharePoint documents, files, website content, and some structured data). A vast majority of market spend for EIA is for email compliance and retention, with additional messaging data retention gleaning increasing interest. File archiving is primarily for storage optimization and efficiency, and interest is waning as other technologies, such as object storage, cloud storage and tiering, are starting to meet those needs. EIA products provide features such as data reduction across content types, retention management, content indexing and at least basic tools for e-discovery. A new use case supporting analytics of secondary data is also gaining traction. Due to the complexity associated with managing multiple data types within an archive, EIA often encompasses capabilities such as federated archive repository management, common policy management for migration, retention management and discovery across multiple repositories. EIA solutions traditionally were implemented by highly regulated environments, such as financial services and healthcare, but this has changed as organizations of all sizes and in all industries are starting to retain and manage email and other unstructured data for compliance, risk, governance and cost optimization. In addition, data sovereignty concerns such as the General Data Protection Regulation (GDPR) are also driving where and for how long data can be retained.

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17.8.2017 Gartner Reprint

https://www.gartner.com/doc/reprints?id=1-3JGDXHH&ct=161006&st=sb 1/34

LICENSED FORDISTRIBUTION

  (https://www.gartner.com/home)

Magic Quadrant for Enterprise Information ArchivingPublished: 05 December 2016 ID: G00294240

Analyst(s): Alan Dayley, Julian Tirsu, Garth Landers, Shane Harris

SummaryThis Magic Quadrant evaluates the vision and ability to execute of vendors focused oncompliance, discovery and reference use cases for archive data. I&O leaders can use thisresearch to identify vendors that provide archiving for email, social media, IM, files and othercontent types.

Strategic Planning AssumptionBy 2021, over 35% of email archiving for regulatory compliance and retention management willbe done through the native email platform, up from 10% today.

Market Definition/DescriptionThis document was revised on 8 December 2016. The document you are viewing is the correctedversion. For more information, see the Corrections(http://www.gartner.com/technology/about/policies/current_corrections.jsp) page on gartner.com.

Note: The weighting for criteria was adjusted in this year's Magic Quadrant, resulting in moremovement among vendors' "dot" placements that has normally occurred in past revisions. Pleasesee the Evaluation Criteria section to view the criteria weightings.

Enterprise information archiving (EIA) incorporates products and solutions for archiving usermessaging content (such as email, IM, and public and business social media data) and otherdata types (such as data stored in enterprise file synchronization and sharing [EFFS], MicrosoftSharePoint documents, files, website content, and some structured data). A vast majority ofmarket spend for EIA is for email compliance and retention, with additional messaging dataretention gleaning increasing interest. File archiving is primarily for storage optimization andefficiency, and interest is waning as other technologies, such as object storage, cloud storageand tiering, are starting to meet those needs. EIA products provide features such as datareduction across content types, retention management, content indexing and at least basic toolsfor e-discovery. A new use case supporting analytics of secondary data is also gaining traction.Due to the complexity associated with managing multiple data types within an archive, EIA oftenencompasses capabilities such as federated archive repository management, common policymanagement for migration, retention management and discovery across multiple repositories.

EIA solutions traditionally were implemented by highly regulated environments, such as financialservices and healthcare, but this has changed as organizations of all sizes and in all industriesare starting to retain and manage email and other unstructured data for compliance, risk,governance and cost optimization. In addition, data sovereignty concerns such as the GeneralData Protection Regulation (GDPR) are also driving where and for how long data can be retained.

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The price of an EIA implementation can vary due to the number of users or amount of contentbeing retained, but often range from $3 to $15 per user per month for SaaS offerings, and $20 to$60 per user for on-premises solutions for messaging content, with file content being charged ona capacity basis. The price also varies by the number of content sources archived and themanagement modules selected, such as enhanced e-discovery and supervision. Gartner isseeing a majority of organizations selecting SaaS for new or updated messaging data archivingimplementations, with migrations to Office 365 and organizational mandates to reduce on-premises infrastructure as the key drivers.

Gartner's Magic Quadrant process rates vendors' product offerings for quality, capabilities andfeature completeness, but this is just one part of the overall rating. The vendor's ability to acquireand support customers is another important criterion; as is its ability to generate visibility andthought leadership in the market. Although archiving products are relatively "sticky" and themarket has matured, vendors must stay abreast of changing compliance, retention and analyticsrequirements to ensure their products meet ongoing requirements. In addition, a vendor's abilityto understand market dynamics and adjust product roadmaps accordingly (such as offeringsupport for cloud archiving) is important in a mature market like EIA, and establishing leadership,vision and credibility will propel some vendors to the front of the pack.

Magic QuadrantFigure 1. Magic Quadrant for Enterprise Information Archiving

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Source: Gartner (December 2016)

Vendor Strengths and Cautions

Actiance

Actiance provides a portfolio of products for the capture and archiving of communications data,including email, IM, social content and voice. The Actiance product portfolio consists of:Alcatraz, a SaaS- and on-premises-based archive; Socialite, for capture and compliance of socialcontent; and Vantage, for regulatory compliance and policy enforcement across a number ofcommunication types. Actiance has a strong emphasis on financial services support, andprovides compliance supervision and surveillance capabilities as well. Looking ahead, Actianceplans to enhance its supervision application to have more proactive elements and workfloworchestration, and also to provide more analytics through its open SDK to include structured datafrom trading applications, or passing communication events to feed downstream partnerapplications and workloads. The vendor has expanded its channel strategy to include IBM in the

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past year. This move is intended to enhance Actiance's global footprint by leveraging IBM's cloudservices. Today, Actiance is primarily North America-based and sold through a direct sales force.It is a privately funded company based in Redwood City, California.

STRENGTHS

Actiance is well-established and has a long track record in the capture and archive of a varietyof communication data with a focus on the persona/role, including unified communications, IMand business/consumer social content.

Alcatraz is built on an open web-scale NoSQL foundation with a focus on horizontal scalabilityand high availability, without a single point of failure in its storage, search and processingcomponents.

Actiance is well-suited for enterprises with the most complex regulatory challenges. Forexample, audit, monitoring and "ethical wall" enforcement of communication interactions anddata are strong.

CAUTIONS

Actiance's administration interfaces fall short of modern user interaction expectations. BothVantage and Alcatraz provide extensive detail and options for queries, but at the expense of auser-friendly administration experience.

Actiance's support for voice capture through carriers is still maturing and organizations needto qualify functionality to ensure that it will meet business needs. End-user access to archiveddata is hampered by a nonintuitive look-and-feel interface.

Barracuda Networks

Barracuda Networks provides several solutions for the archiving and management of data,including email, file, IM, voice and social media content. Barracuda's product portfolio includesBarracuda Message Archiver for cloud-connected message archiving, Barracuda Cloud ArchivingService for pure SaaS-based archiving of email and e-discovery, and Barracuda ArchiveOne(obtained through the C2C Systems acquisition in 2014) for information management, retentionand compliance. Newly released this year is Barracuda Essentials for Office 365, an integratedsuite of cloud-based SaaS applications providing multilayer security, archiving and backup forOffice 365. Today, Barracuda customers primarily use the products for email retention, with fewimplementations for files, IM and social media archiving. Barracuda's future roadmap consists ofimproved integration between the archiving and backup solutions to offer an easy andcomprehensive way to retain and protect information. Products are sold predominantly throughvalue-added resellers (VARs), with 90% of revenue coming from North America and EMEA.Barracuda Networks is publicly traded and headquartered in Campbell, California.

STRENGTHS

Barracuda Cloud Archiving Service provides a seamless migration of archived email from on-premises to its cloud service. Once replicated from the Barracuda Message Archiver applianceto the Barracuda cloud, the data can then be automatically moved into Barracuda CloudArchiving Service.

The vendor provides extremely cost-effective basic email archiving, either with the BarracudaMessage Archiver appliance or directly into Barracuda Cloud Archiving Service.

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Barracuda is focused on the customer experience with the introduction of BarracudaEssentials for Office 365 for email security, archiving and data protection.

CAUTIONS

Barracuda Networks struggles with the removal of outdated functionality and is slow to delivernew features.

The vendor does not have native support for archiving of SMS, SharePoint or content stored inEFFS solutions.

Barracuda Networks is primarily North America-based and has been slow to expand into othergeographical regions.

Bloomberg

Bloomberg offers Bloomberg Vault as a compliance, surveillance, trade reconstruction and riskmanagement solution. Earlier this year, Bloomberg enhanced content type support with theacquisition of Netbox Blue for the collection of social data. Bloomberg Vault File Analyticsextends compliant WORM archiving and proactive supervision into the customer's unstructureddataset, for policy-based retention and retrieval. Vault supports various enterprisecommunication platforms such as Exchange email, IM, social media and Salesforce Chatter,along with document repositories such as Salesforce Files, SharePoint, Box, and Windows andUnix/Linux file shares. Bloomberg is heavily invested in financial services, and provides highlyrated email supervision. In addition, the vendor provides solutions to address tradereconstruction, correlating structured trade, unstructured communication and voice data fordriving compliance with financial services regulations, such as the U.S. Dodd-Frank Act and theEU's Markets in Financial Instruments Directive (MiFID) 2. In the near term, Bloomberg plans ondelivering enhanced surveillance functionality utilizing contextual analytics, in addition to voiceanalytics capabilities for trade reconstruction. Vault is sold by a specialist overlay group, as wellas the wider company sales force. Bloomberg is headquartered in New York, New York.

STRENGTHS

Bloomberg has in-depth knowledge of financial services compliance data, and continues toinnovate to support Dodd-Frank Act and MiFID 2 regulation adherence with Bloomberg Vault.

Gartner reference clients consistently rate Bloomberg as having excellent customer supportwith highly rated technical expertise.

Recent revisions provide an improved intuitive persona-focused user interface, and complextasks are made simple through the use of terminal-type interactions. Bloomberg has spentconsiderable effort focusing on user personas by turning complex tasks into simple actions,including intuitive shortcuts and hot keys.

CAUTIONS

Bloomberg Vault's tight integration within Bloomberg can result in a lack of differentiatedbrand visibility, and go-to-market activities seem to be buried under Bloomberg's broadercompany image as a financial news and messaging company.

Reporting dashboards and visualizations are weak, with root cause analysis challenging.

Bloomberg is inconsistent in delivering roadmap plans and clearly communicatingfunctionality releases, creating frustration in planning for customers.

Capax Discovery

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Capax Discovery

Capax Discovery entered the data archiving market with a series of technology transfers fromHewlett Packard Enterprise (HPE) over the past several years, including Enterprise ArchiveSolution (EAS), HP Consolidated Archive (HPCA) and Mimosa NearPoint, with the primary focusto market these under the Capax Enterprise Archive Solutions (CAS) brand name going forward.Capax Discovery's CAS offering is an on-premises or hosted service management platform thatincludes email archiving, IM, SharePoint, e-discovery, unstructured data file analysis (CAS DataLight) and enhanced search. CAS Archive Bridge enables seamless access to other archiveddata, such as Veritas Enterprise Vault, eliminating the costly and difficult task of migrating oldarchives. Machine learning capabilities, in conjunction with CAS Data Light, increase thereliability of targeting data for specific retention needs or purging. Capax recently announced theacquisition of Zovy, a managed service provider for HPCA, and rebranded the offering as ZovyArchive Solutions (ZAS). Key roadmap deliverables include adding additional connectors toarchive many social media and business social sites, enhancing its hybrid cloud strategy, andcontinuing to increase scale and performance of CAS and ZAS. Capax Discovery's sales model isprimarily direct to the customer, with nearly 90% of revenue currently generated in North America;however, expansion is being targeted for Asia via VARs. Capax Discovery is privately held andheadquartered in Morristown, New Jersey.

STRENGTHS

The CAS platform is solid and proven, and, after a few years of limited development by HPE,Capax Discovery has released needed usability, scale and discovery updates, in conjunctionwith new enhancements for retention and targeting data for archiving.

The vendor has a deep history of assisting organizations in implementation and setup ofarchiving and e-discovery. This capability, coupled with good search and discovery capabilitiesin CAS, provides a highly regarded information governance experience.

Capax Discovery provides tested machine learning capabilities, such as for classification andcategorization, in conjunction with templates to apply to specific industries and use cases.Much of these enhancements are enabled by utilizing unique graphics processing unit (GPU)-accelerated hardware technology.

CAUTIONS

Capax Discovery is late to the market with a cloud offering, and ZAS is currently offered only asa hosted managed service platform, not as a holistic multitenant SaaS solution. Customersshould vet ZAS to see if it meets their requirements as it is rolled out more broadly to thevendor's customer base.

The end-user experience in accessing archiving data needs to be improved beyond the currentlegacy web interface. In addition, administration tasks require a combination of utilizing thelegacy and new administration consoles, the latter being much improved from prior editions.

The vendor has an aggressive roadmap to integrate the best features of the legacy portfoliointo CAS. Customers should ask for and be fully aware of changes and enhancements toproducts as Capax Discovery delivers to its roadmap.

Commvault

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Commvault provides archiving as a stand-alone product or as part of a combinedbackup/archiving portfolio. It archives Exchange, Office 365 and Domino email; Windows, Unix,Linux and Mac file shares; and SharePoint content. Commvault partners for social media and IMcontent. The Commvault solution is largely offered as an on-premises solution, but also recentlymade the product available as SaaS to early adopters. Commvault OnePass enables thecollection of data for both archiving and backup use cases. Commvault's repository, theContentStore, is a virtual repository housing one set of data for both backup and archive,facilitating storage optimization, discovery and risk management use cases. The vendorleverages Microsoft Azure for its SaaS offering and is also deployed in other clouds throughMSPs. Commvault has a vertical focus in healthcare, archiving large file types and providing aclinical archive. In addition, e-discovery with legal hold and sensitive data detection andremediation are provided. Looking forward, Commvault plans to make its SaaS offering generallyavailable, and to provide enhanced search and data recognition capabilities. The products aresold direct, but also through a large and extensive global VAR channel. Commvault is a publiclytraded company located in Tinton Falls, New Jersey.

STRENGTHS

Commvault delivers strong file archiving known for its scalability and portability, whichprovides capacity savings and a positive user experience.

The vendor is well-suited for discovery and enterprise search provided through role-basedaccess.

Commvault differs from other vendors in that data is collected once for both backup andarchive purposes, enabling truly integrated and complementary processes.

CAUTIONS

Customers can just employ archiving; however, in order to fully benefit from the Commvaultplatform, they should employ both backup and archiving together.

Commvault has been slow in executing a SaaS offering comparable to market leaders.

From a total cost of ownership (TCO) perspective, the Commvault solution is more expensiveto acquire than competitive offerings for on-premises email archiving.

Dell EMC

Dell EMC's EIA offering is SourceOne and is available on-premises or through a SaaS model.SourceOne is delivered via the Data Protection Suite for Archive by the Dell EMC CoreTechnologies division. SourceOne delivers modules for email, files, SharePoint, discovery andsupervision. InfoArchive, an EMC-branded product that was marketed as a common reportingand analytics repository back end for all Dell EMC-captured archive data, is being sold toOpenText as part of the Documentum Enterprise Content Division divestiture, leaving SourceOneas the primary offering by Dell EMC. As part of an overall backup and archiving go-to-marketstrategy, SourceOne's key capabilities lie in storage management optimization and scale. Theability to more effectively search primary, backup and archiving data across platform-agnosticinfrastructure (cloud, hybrid and on-premises) is a key near-term roadmap item. Dell EMC has abroad global presence and SourceOne is available primarily through a wide variety of partners.Dell EMC is a brand of Dell Technologies, which is privately controlled, with Dell EMCheadquartered in Hopkinton, Massachusetts.

STRENGTHS

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Search and retrieval capabilities are cited as a SourceOne strength by customers.

SourceOne is able to scale across large environments for basic email archiving use cases.

With continued inclusion in the Dell EMC Data Protection Suite family, SourceOne is featured inboth engineering and go-to-market strategies for this product line.

CAUTIONS

With InfoArchive's divesture to OpenText, SourceOne is now left as a point solution for general-purpose archiving instead of the larger vision of a common repository that provides ingestion,reporting and analytics over a much broader portfolio set.

Current and potential customers of Dell EMC SourceOne should carefully monitor and obtainregular updates of roadmaps and future plans for the product to ensure that it will meet theirneeds.

SourceOne innovation recently is geared more toward efficiency and optimization from astorage standpoint, with less emphasis on compliance and information governance.

Global Relay

Global Relay provides a broad messaging data compliance platform, and is focused primarily onthe financial services industry. Until recently, many of Global Relay's customers mainly utilizedthe service departmentally for regulated users, but now adoption is occurring more broadlyacross organizations. Delivered as SaaS, Global Relay Archive provides dozens of connectors toarchive various email, IM, social media and business social data. Global Relay Archive acts as acentral repository for information governance, compliance supervision, e-discovery and role-based end-user access across all archiving content. Global Relay has introduced search andoperational analytics, and plans to deliver additional enhanced analytics focused on bothmitigating risks and identifying business value within the customer's holistic archive messagedata repository. In addition, Global Relay Message, geared to financial services, will provide amessaging and collaboration platform that enables users to have a single work environment toaccess archived messaging data and to communicate in real time. The Financial IndustryRegulatory Authority's (FINRA's) Compliance Resource Provider Program lists Global Relay as anamed messaging archiving vendor. Global Relay has expanded more into Europe and Asia in thepast few years. Global Relay Archive is primarily purchased directly from the vendor. Global Relayis privately owned, employee-controlled and headquartered in Vancouver, British Columbia,Canada.

STRENGTHS

Global Relay Archive is a tried and tested compliant messaging data platform with deepfinancial services functionality.

Complex searches, case management and overall e-discovery services have been cited bycustomers as strengths.

The end-user access experience through a web interface, Outlook plug-in or mobile devicesprovides users the ability to search and access data across all archived content types, and alsoto communicate compliantly through Global Relay Message.

CAUTIONS

When expanding to outside the regulated user base, be sure to review archiving options fordifferent employee types to rightsize the offering and contract.

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Before entering into an agreement with Global Relay, become fully familiar with data extractionSLAs, including cost to extract data (both small and large batches) and delivery mechanisms,and negotiate appropriate extraction fees and timelines.

Global Relay has an aggressive plan for features and services. Ask for and pay close attentionto timely delivery of published roadmap and service metrics throughout the course of therelationship.

Google

Google Vault is the archive system for Google content. The product supports in-place archivingof Google Gmail, Google Drive, Google Hangouts (Talk) and SMS archiving through Google Voice.Support for hybrid customers that have a mixed environment (with both Gmail and non-Gmailusers, such as Domino or Exchange) is available, but infrequent. Google Vault is available as partof the G Suite Business package or as an add-on for G Suite Basic. Google Vault is soldworldwide and has good international support, with the ability to handle over 50 languages inaddition to double and triple byte character support. The product provides native e-discoveryfunctions with support for full user mailbox hold and targeted legal hold; however,tagging/classification is not supported. Data extraction is a positive when compared to otherarchive systems — customers can extract data from their Vault archive at any point, withoutrequiring any migration tools or incurring any additional costs. Looking ahead, Google plans onenhancing APIs for e-discovery functions, including search, legal hold and exports. Google Vaultis primarily sold as an additional module through its normal sales channels. Google is a publiclytraded company headquartered in Mountain View, California.

STRENGTHS

The archive experience is transparent for end users and is fully integrated into Googleapplications and content.

Google Vault has a straightforward licensing model with all features being inclusive; there areno separate modules.

Google Vault has demonstrated the ability to support high-volume environments. Its largestVault customer has over 389,000 mailboxes.

CAUTIONS

Google Vault is only applicable to Google-generated content; however, for some legacycustomers, other content is supported.

Even as Google indicates that Google Vault is a strategic offering, the roadmap is somewhatlimited and features tend to be slow in delivery.

Customers considering utilizing Google Vault should consider G Suite for Business (Vault isincluded) versus G Suite Basic, where Vault is a comparably expensive add-on.

HPE

Hewlett Packard Enterprise's (HPE's) EIA offering has changed significantly in the past few years.From 2014 to 2016, HPE divested legacy on-premises products EAS and HPCA to CapaxDiscovery, which has enabled HPE to invest greater resources toward SaaS-based archivingsolutions. HPE recently announced a "spin merge" of HPE Software to become part of MicroFocus in mid-2017. The offerings described below will be part of Micro Focus after the merger iscomplete. Digital Safe, a SaaS offering, is positioned to meet the messaging data archiving

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demands of the most highly regulated and complex organizations. In addition, Verity wasintroduced in 2016 as an overall unified information management and governance suite, and willbe offered as public and private cloud deployment options globally. Verity is targeted at small tomidsize enterprises, with archiving being the first module introduced. HPE plans to enhanceVerity's common application framework and information store by introducing additional modulesfor data protection, e-discovery, supervision, endpoint information management, file analysis andrecords management. As part of a 50% planned increase in R&D investment, Digital Safe is beingmodernized by leveraging the new common application framework being developed inconjunction with Verity. Until the spin merge with Micro Focus is completed, Digital Safe andVerity are both available directly through HPE and through a broad partner network. HPE is apublic company headquartered in Palo Alto, California.

STRENGTHS

HPE Digital Safe is widely used by highly regulated organizations, such as financial services,for some of the most high data volume, complex and litigious environments.

Verity, although new, has an aggressive roadmap and is receiving good feedback from thesmall to midsize enterprises that are purchasing it for general information management andgovernance.

HPE receives high marks from customers for the scale of its offerings, and for the gatheringand subsequent reporting of data in the archiving tools.

CAUTIONS

A combination of refining product strategy toward SaaS in conjunction with the pendingmerger with Micro Focus is taxing short-term execution and customers, and prospectivecustomers should request clear and frequent updates to ongoing roadmap plans.

Additional training may be needed to get the most out of Digital Safe's administration and end-user experiences.

HPE TCO is high, but may be commensurate with complex compliance requirements. Somenew, enhanced features to address burgeoning data needs are offered free of charge, whileothers with significant additional functionality can be priced higher than legacy features. HPEcustomers should be aware of SLAs and data extraction language in the cloud contracts toavoid steep fees when retrieving data; especially if deciding to move to a different solution.

Micro Focus (GWAVA)

GWAVA provides a multiplatform unified archiving solution for email, social content, IM andmobile communication data with Retain Unified Archiving. Deployed on-premises or in the cloud,Retain focuses on email archiving, with native support for Exchange, Office 365, Gmail,GroupWise and Domino, but also supports the archiving of electronic business communication,including data created on mobile devices and social media, and in IM and internet web searches.Built-in litigation support tools for performing e-discovery are also included at no additional cost.Retain provides multiple ways to access the archive, including through Retain's Web AccessArchive Viewer and the Retain Archive App. File archiving is not supported at this time, but Retaindoes offer connectors to SharePoint and other enterprise content management systems, as wellas EFFS solutions such as OneDrive, Dropbox, Box, etc. Retain is primarily sold direct from the

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vendor and through VARs, with over 95% of revenue originating in the Americas and EMEA.Headquartered in Montreal QC, Canada, GWAVA is privately funded and was recently acquired byMicro Focus, a global software company based in Newbury, U.K.

STRENGTHS

GWAVA supports a wide array of social media content and mobile communication data forarchiving within Retain Unified Archiving.

GWAVA includes highly rated litigation support tools for e-discovery in Retain, at no additionalcost.

Retain Cloud brings new options to highly regulated industries and for data sovereigntyrequirements.

CAUTIONS

Future roadmap implementations are uncertain on the heels of the recent acquisition ofGWAVA by Micro Focus.

Retain Unified Archiving indexing speeds and end-user email access are pain points referencedby customers.

File archiving support is missing, with no indication of future implementation.

Microsoft

Microsoft provides native capabilities for on-premises archiving of Exchange 2013 and 2016, andcloud-based archiving through Office 365 for Exchange Online, SharePoint, Skype for Businessand Microsoft file shares. In addition, third-party data, such as social media, IM and Bloombergmessaging data, can be ingested into the Microsoft repository through partners. Archiving ismanaged in place and not based on journaling content to another repository, with immutabilityachieved through applying litigation hold, which has been certified to meet SEC 17a-4 WORMrequirements. The product is integrated natively with other Microsoft compliance offerings, suchas advanced e-discovery, data loss prevention (DLP), security, continuity and spam filtering.Native e-discovery includes legal hold capabilities, with the ability to discover against drafts,contacts and appointments. Retention capabilities include intelligent classification based oncontent, including query-based, sensitive-data-based and finger-print-based. Microsoft hasimproved its scalability with support for autoexpanding archives, in some cases, and support forpublic folder archiving. In addition, Microsoft is building additional geographic support toaddress data sovereignty requirements. On its roadmap, Microsoft plans to deliver supervisioncapabilities, which are currently in preview. The product is primarily sold as part of Office 365deployments by a direct sales force and global partners. Microsoft is a publicly traded companybased in Redmond, Washington.

STRENGTHS

For organizations moving to Office 365, the in-place, native archive brings architecturalsimplicity.

Microsoft has been diligent and methodical about product improvements. It has a well-thought-out vision for information governance across Office 365, Azure, OneDrive and otherparts of its portfolio.

End-user archiving through drag-and-drop, right mouse button actions is intuitive andstraightforward.

CAUTIONS

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CAUTIONS

Search results can be inconsistent; users have cited problems with indexing scheduling.

Mobile access to the archive is an area in need of improvement, as users must use OutlookWeb App (OWA) and the archive mailbox is not available offline.

The archive mailbox is for storage and user efficiency only, and all litigation and query-basedholds are managed across the entire user's mailbox, including the archive mailbox, meaningthat different retention policies cannot apply separately to primary and archive mailboxes.

Mimecast

Mimecast's EIA offering is most often sold as part of the Unified Email Management SaaSoffering. Mimecast does provide offerings for file, SharePoint, IM and social media, but only afew customers are using the offering for content outside of email. In addition to email archiving,Mimecast delivers strong and widely adopted cybersecurity, email continuity/resiliency andtargeted threat detection. The grid-based back-end scale and capabilities of Mimecast-owneddata centers enable aggressive SLAs for email availability and also search/discovery of thearchive data. The easy-to-use large file send feature offered by Mimecast is offered directlythrough the common interface. Key roadmap deliverables are email data protection (backup andrecovery) and supervision/compliance capabilities for email. Mimecast has a strong EMEA andNorth America customer base, and recently opened multiple data centers in Australia. Theproduct is available primarily through the channel. Mimecast became a public company in late2015 and is registered in London, with North American headquarters in Boston, Massachusetts.

STRENGTHS

Mimecast delivers seamlessly integrated modules — namely, archiving, continuity and securityfor email — displaying a rich offering for overall email management.

Mimecast has an excellent track record of developing aggressive roadmaps and go-to-marketstrategies, and then producing results.

The scale, administration and usability for multiple use cases have been highly rated bycustomers.

CAUTIONS

Financial services organizations will find supervisory functionality currently limited (althoughenhancements are on the near-term roadmap) and should discuss availability with Mimecastbefore signing an agreement.

Since adoption for nonemail content type is low, customers should thoroughly evaluate theseadditional offerings to ensure that requirements are met.

The e-discovery workflow process for linked and attached data in email requires extra setupsteps and tends to be awkward.

Proofpoint

Proofpoint offers SaaS archiving-focused solutions for highly regulated verticals and hasdemonstrated continued commitment to its archive business through its strategic acquisitions inthe past 12 months of Socialware, for social content collection, and OrcaTec, which providesthought-leading analytics, predictive coding and machine learning capabilities. In addition, majorinvestments in sales and marketing have also occurred this year. Proofpoint provides archive

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support for Microsoft Exchange, Office 365, SharePoint, Bloomberg, and content from Twitter,LinkedIn and Facebook, as well as enterprise social media such as Yammer, Chatter, Skype andJive. Proofpoint sells compliance supervision for FINRA and similar financial compliancerequirements, and has a customer base spread across regulated industries, such as financialservices, the public sector and healthcare. Proofpoint Email Archive is now FEDRAMP-authorizedto provide email cloud services across the federal government. Near-term roadmap items includefinancial-services-optimized solutions for intelligent supervision and enhanced social messagingcapture, in addition to improved e-discovery analytics, advanced search and visualizationcapabilities in the overall compliance workflow. The product offerings are primarily sold throughdirect sales, with a smaller percentage through VARs and OEM agreements. Proofpoint is basedin Sunnyvale, California.

STRENGTHS

Proofpoint builds on the value of its security model for the large enterprise, offering acomplete, end-to-end set of capabilities for archive buyers concerned about security.

The vendor offers supervision and strong e-discovery capabilities, with continued investmentin these areas.

Proofpoint guarantees search performance with a financially backed SLA, and consistentlyexceeds search performance for enterprise-scale environments.

CAUTIONS

The administrative interface is an area cited by customers as needing to be enhanced for easeof use.

Licensing needs to be simplified, and pricing for add-on features tends to be expensive.

Primarily focused on Microsoft Exchange for email, support is limited for file and mobile end-user access.

Smarsh

The Archiving Platform from Smarsh is a SaaS-based offering archiving Microsoft Exchange,Lotus Domino, Microsoft SharePoint, IM, business social media (Lync, Chatter, Yammer and Jive),public social media (LinkedIn, Facebook, Twitter, Pinterest and Instagram), web content, andvoice — all natively. Smarsh partners with telco carriers AT&T and Verizon to capture mobilecontent, including voice and SMS text, behind the scenes. The vendor has a strong emphasis onthe financial services market, with over 80% of its customers in that industry, and provides goodsupervision compliance capabilities with support for proactive encryption and/or data leakprevention. Support for file archiving does exist, with customers that upload content fromsystems like Citrix ShareFile or Windows servers. Moving forward, Smarsh plans to offer moreflexible deployment models to meet geographical requirements and expand its work withinternational carriers. The Archiving Platform is largely sold through a direct sales force, with anumber of VARs and sales operations in the U.K. Smarsh is U.S.-based in Portland, Oregon, andis privately held.

STRENGTHS

Smarsh is industry-leading in its native capabilities to archive the widest array of content types,including email, social, business messaging, IM, financial services messaging, files and webcontent.

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The vendor has good domain expertise in financial services and accompanying applications,such as compliance supervision and e-discovery.

Smarsh is a thought leader in the collection of mobile content through working directly withtelco carriers.

CAUTIONS

Customer experience deliverables for training and support need to be improved.

Smarsh's current lack of data center support in the EU limits opportunities in that region.

Access to archived data on mobile devices, such as searching for content, can be challenging.

Veritas

Veritas sells Enterprise Vault, the market-share-leading EIA on-premises platform. In addition toEnterprise Vault, Veritas offers Enterprise Vault.cloud as a SaaS offering. The vendor is improvingits portfolio and advancing with comprehensive content visibility features for e-discovery,supervision and classification. Enterprise Vault and Enterprise Vault.cloud support archivingExchange, Domino and other mail applications via SMTP. Enterprise Vault.cloud supportsarchiving Microsoft Lync/Skype for Business on-premises, and provides cloud file archiving forBox, SharePoint and Salesforce Chatter, although not for on-premises file systems. EnterpriseVault supports archiving files from various sources in addition to Windows file shares. EnterpriseVault offers a separate module for e-discovery — Discovery Accelerator — while EnterpriseVault.cloud's capabilities for e-discovery include search, tagging, legal hold, export and review.Veritas recently enhanced functionality to assist U.S. federal agencies in meeting NationalArchives and Records Administration (NARA) Capstone guidance for records retention. In thefuture, Veritas plans major updates to its individual e-discovery solutions. Enterprise Vault andEnterprise Vault.cloud are sold primarily via the Veritas channel partner network. Veritas, aprivately held company, is headquartered in Mountain View, California.

STRENGTHS

Veritas Enterprise Vault maintains a large on-premises installed base and continues to evolvewith support for a variety of content types.

Comprehensive content visibility and classification and deriving business value from archiveddata are focuses, as evidenced through new product features and company messaging.

Customer relationships and product support have improved through increased communication,marketing and customer user conference.

CAUTIONS

Content support, UI experience and supported features between Enterprise Vault andEnterprise Vault.cloud are inconsistent and challenging for customers looking to migrate fromEnterprise Vault to Enterprise Vault.cloud.

Veritas eDiscovery Platform, Discovery Accelerator and Discovery.cloud currently remainindependent e-discovery offerings, with no further planned consolidation in the future.

Enterprise Vault.cloud has fallen behind competitors for data sources, ease of use and useraccess capabilities.

ZL Technologies

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ZL Unified Archive is a scalable solution, often deployed by large enterprises, that enablesarchiving, supervision, records management, e-discovery and support for analytics as part of oneplatform. ZL's newly embedded BigDB infrastructure with full text indexing and graph computingengine makes possible near-real-time analytics on the Unified Archive datasets, enabling morevalue, use-case coverage and scale. Archiving functionality is available for Exchange, Office 365,Domino, Gmail, heterogeneous file systems, SharePoint, enterprise content management, IM,social media and web pages. ZL provides users the option to index and manage data in-place,which does not require it to be copied to the archive repository. ZL Unified Archive is availabledirect from the vendor and through channel partners. A number of specialty cloud providers(including LDiscovery and Viewpointe) utilize ZL as the technology powering their cloud archivingservices. In the coming year, the vendor plans on augmenting its already robust analyticscapabilities, expanding use cases for enhanced e-discovery, records management, compliance,risk detection and the identification of unique business value opportunities. The vendor's primarycustomer base is in North America, with a strong presence in Asia, primarily in Japan, andrecently it has entered the EMEA market. ZL Technologies is a privately held company, based inMilpitas, California.

STRENGTHS

ZL continues to increase product innovation with actionable file analysis, analytics,classification and architecture to flow into a comprehensive information management andgovernance strategy.

The ZL product provides a scalable platform for information management that can support awide variety of content from multiple sources, including many verticals, such as financialservices, healthcare and U.S. federal government Department of Defense (DoD) and NARACapstone.

Product support and account management receive high praise from customers.

CAUTIONS

ZL products are available directly from the vendor as SaaS solutions in the U.S., butinternational customers will need to rely on ZL's partners for hosted offerings.

ZL's EIA offering is complex and challenging to implement to glean the full capabilities of thesolution.

Monitoring tools and reporting could be improved, along with less frequent upgrades that mayrequire interruption and retraining.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a resultof these adjustments, the mix of vendors in any Magic Quadrant may change over time. Avendor's appearance in a Magic Quadrant one year and not the next does not necessarily indicatethat we have changed our opinion of that vendor. It may be a reflection of a change in the marketand, therefore, changed evaluation criteria, or of a change of focus by that vendor.

Added

Capax Discovery was added due to the acquisition of HPE EAS, Mimosa NearPoint and HPCA.

Dropped

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IBM was dropped due to mainly relying on the reselling of third-party offerings instead of widelymarketing its own internally developed Content Collector product.

Inclusion and Exclusion CriteriaThe inclusion criteria represent the specific attributes that analysts believe are necessary forinclusion in this research.

To qualify for inclusion, vendors must:

Be the developer of the product, and not just a reseller or VAR.

Support a growing base of customers, including at least 10 enterprise customers (5,000 usersor more) that are using the software in a production environment for email archiving, and withat least three of those additionally using the product for other content archiving.

Have a presence in at least two geographies worldwide and be industry-independent.

Provide its solution as an on-premises software product, a SaaS offering or some combinationof the two. In 2015, the vendor must achieve greater than $20 million for new license ormaintenance revenue annually for its archiving solution, or must be close to this threshold, butalso have deep capabilities for regulated environments. To verify that the revenue criterion ismet, vendors must: (1) be included in the Gartner Market Share report for 2015, showing $20million in EIA revenue; (2) be validated by Gartner analysts through independent industrysources; or (3) provide audited financials signed by an outside auditor, and the CFO and/orCEO, verifying that this threshold has been met.

Have the ability to provide at least five references to support the criteria; three of thesereferences should be using the product for both mail and other content archiving.

Evaluation Criteria

Ability to Execute

Product or Service: Core goods and services that compete in and/or serve the defined market.This includes current product and service capabilities, quality, feature sets, skills etc. This can beoffered natively or through OEM agreements/partnerships, as defined in the Market Definitionand detailed in the subcriteria:

An evaluation of the features and functions of the vendor's EIA solution.

Support for integrated email and one other archiving content type, such as IM or social media.

Integration that supports the following:

Data reduction across multiple content types (e.g., deduplication, single instance storage)

Common management across content types, for supported features (e.g., policymanagement, user definition, retention management, e-discovery features)

Full-text indexing and search for all content types

Roadmap should support plans for continued integration of multiple content types

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Higher ratings are assessed for support for SharePoint, IM, text messages, video/audio, socialmedia content and structured data (applications and databases). That is, support for thesecontent types is optional, but considered favorably.

Higher ratings are assigned to solutions with strong archive architectures, policy-basedarchiving and mailbox management features (email), supervision, quality of user experience, e-discovery and retention management capabilities.

Overall Viability: Viability includes an assessment of the organization's overall financial health aswell as the financial and practical success of the business unit. In addition, the vendor isreviewed for the likelihood of continuing to offer and invest in the product, as well as theproduct's position in the current portfolio.

Sales Execution/Pricing: The organization's capabilities in all presales activities and thestructure that supports them. This includes deal management, pricing and negotiation, presalessupport, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: This includes the ability to respond, change direction, beflexible and achieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor's history ofresponsiveness to changing market demands.

Marketing Execution: This criterion assesses the clarity, quality, creativity and efficacy ofprograms designed to deliver the organization's message in order to influence the market,promote the brand, increase awareness of products and establish a positive identification in theminds of customers. This "mind share" can be driven by a combination of publicity, promotional,thought leadership, social media, referrals and sales activities.

Customer Experience: This measures the products and services and/or programs that enablecustomers to achieve anticipated results with the products evaluated. Specifically, this includesquality supplier/buyer interactions, technical support or account support. This may also includeancillary tools, customer support programs, availability of user groups, service-level agreements,etc. Vendors that charge reasonable extraction and ingestion fees for data will get higher marks(i.e., only charge professional services fees) than vendors that charge on a high per-TB basis.

Operations: This includes the ability of the organization to meet goals and commitments.Factors include quality of the organizational structure, skills, experiences, programs, systemsand other vehicles that enable the organization to operate effectively and efficiently.

Table 1.   Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product or Service High

Overall Viability High

Sales Execution/Pricing Medium

Market Responsiveness/Record Medium

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Evaluation Criteria Weighting

Marketing Execution Medium

Customer Experience High

Operations Low

Source: Gartner (December 2016)

Completeness of Vision

Market Understanding: This assesses the vendor's ability to understand customer needs andtranslate them into products and services. Vendors should show a clear vision of their market —listen, understand customer demands, and shape or enhance market changes with their addedvision. Vendors should also have the ability to anticipate market trends (for example, therequirement to archive other content and to provide strong e-discovery support), and to quicklyadapt via new features or partnerships and/or acquisitions.

Marketing Strategy: Vendors are rated on clear, differentiated messaging consistentlycommunicated internally, externalized through social media, advertising, customer programs andpositioning statements.

Sales Strategy: Participants are rated on a sound strategy for selling that uses the appropriatenetworks, including direct and indirect sales, marketing, service, and communication. Partnersshould extend the scope and depth of market reach, expertise, technologies, services and theircustomer base.

Offering (Product) Strategy: This includes an approach to product development and delivery thatemphasizes market differentiation, functionality, methodology and features as they map tocurrent and future requirements.

Business Model: This is a measurement of the design, logic and execution of the organization'sbusiness proposition to achieve continued success.

Vertical/Industry Strategy: This is a measurement of the design, logic and execution of theorganization's business proposition to achieve continued success.

Innovation: This criterion includes an assessment of product leadership and the ability to deliverarchiving features and functions that distinguish the vendor from its competitors, includingdirect, related, complementary and synergistic layouts of resources, and expertise or capital forinvestment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy is gauged on directing resources, skills and offeringsto meet the specific needs of geographies outside the "home" or native geography, either directlyor through partners, channels and subsidiaries, as appropriate for that geography and market.

Table 2.   Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

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Market Understanding High

Marketing Strategy Low

Sales Strategy High

Offering (Product) Strategy High

Business Model Medium

Vertical/Industry Strategy High

Innovation Medium

Geographic Strategy Medium

Source: Gartner (December 2016)

Quadrant Descriptions

Leaders

Leaders have the highest combined measures of Ability to Execute and Completeness of Vision.They may have the most comprehensive and scalable products. They have a proven track recordof financial performance and an established market presence. In terms of vision, they areperceived as thought leaders, with well-articulated plans for ease of use, product breadth andhow to address scalability. For vendors to have long-term success, they must plan to address theexpanded market requirements for EIA, including support for multiple content types, support forthe cloud, solid relevant e-discovery functionality and a seamless user experience. Leaders notonly must deliver to current market requirements, which continue to change, but also need toanticipate and begin to deliver on future requirements. A cornerstone for Leaders is the ability toarticulate how these requirements will be addressed as part of their vision for expanded archivemanagement. As a group, Leaders are considered as part of most new purchase proposals, andhave high success rates in winning new business. There are six Leaders in this year's MagicQuadrant: Global Relay, Microsoft, Mimecast, Proofpoint, Smarsh, and Veritas.

Challengers

Challengers can execute today, but have a limited or an evolving vision. They have capableproducts and can perform well for many enterprises. These vendors have the financial andmarket resources and capabilities to become Leaders, but may have elected to focus moreheavily on one vertical industry or one EIA use case. The Challenger in this Magic Quadrant isMicro Focus (GWAVA).

Visionaries

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Visionaries are forward-thinking, but their execution has not propelled them into a leadershipposition. These vendors are differentiated by product innovation, but they have not achieved thesales and marketing success required to give them the high visibility of Leaders. In the case ofthis Magic Quadrant, they may be hampered by their product integration or technical supportexecution. Visionaries in this Magic Quadrant are Actiance, Bloomberg, HPE and ZLTechnologies.

Niche Players

Niche Players are narrowly focused on an application, a market or a product mix, or they offerbroad capabilities without the relative success of their competitors in other quadrants. NichePlayers may focus on a segment of the market and do it well, or they may simply have modesthorizons and lower overall capabilities, compared with competitors. Others are simply too new tothe market or have fallen behind, and, although they're worth watching, they have not yetdeveloped complete functionality or the ability to execute. Niche Players in this Magic Quadrantare Barracuda Networks, Capax Discovery, Commvault, Dell EMC and Google.

ContextThis Magic Quadrant profiles vendors that offer, at a minimum, integrated email and some othercontent archiving utilized predominantly for regulatory compliance, retention management,information governance and e-discovery, with storage efficiency management as a secondarybenefit. Archiving of other content types, including structured application data, is discussed, butis not required for inclusion in this research. This research does not include:

Pure hierarchical storage management (HSM) or storage tiering products

Products designed to address storage growth via archiving, HSM or storage virtualization invery large-scale file environments

Vertically focused archiving solutions that are tightly integrated with specific applications (forexample, vendor-neutral archives within the healthcare vertical)

Structured data archiving or application retirement, except when part of a holistic vendoroffering with EIA as the primary component

Market OverviewThe overall archiving software market grew less than 1% to $1.92 billion in 2015, largely due todeclines in on-premises EIA applications and application retirement/structured data archiving(not covered in this research). SaaS-based EIA messaging data archiving increased by more than25% during the same period and now comprises greater than 35% of the overall archivingsoftware market that Gartner currently covers. EIA has emerged as a commonly used technologyunderpinning for high-level use cases supporting compliance, information governance, e-discovery and historical preservation of data. Originating as a technology solution targetedspecifically at archiving email applications, the EIA market has expanded to include broadsupport for multiple content types. Basic functionality (including the ability to define retentionpolicies, support advanced e-discovery search, provide transparent access to data and exportdata for legal review) has become standard. We see vendors differentiating their solutions basedon a number of other emerging trends, including:

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Broader information governance concerns (regulatory compliance, business-focused retentionand deletion of data, and managing aging data based on a clear understanding of its value) arebeginning to surpass e-discovery as the primary driver for deploying EIA.

The ability to archive and manage multiple content types, including (but not limited to) email,collaboration applications (such as SharePoint), IM, business social, social media, web pagecontent and files, is becoming increasingly important for organizations.

Archiving as a service (aka SaaS) for messaging content has rapidly surpassed on-premisesarchiving as the preferred deployment model for most organizations. Gartner sees over 70% ofnew or replacement email archiving implementations as being cloud-based.

Aging on-premises archiving platforms are being replaced by more modern solutions, andmigration from one archive to another, although difficult, has become commonplace.

Storage capacity management, although less of a driver for EIA than information governance,is still a concern for many organizations. However, storage efficiency needs are more oftennow met by technologies such as storage tiering, object storage, distributed file systems andcloud storage offerings.

EvidencePlacement on the Magic Quadrant is based on Gartner's view of a vendor's performance againstthe criteria noted in this research. Gartner's view regarding vendor placement on the MagicQuadrant is heavily influenced by surveys completed by the vendors, and more than 1,000 phoneinquiries, customer visits and one-on-one conversations at Gartner conferences conductedduring the past 12 months with our clients on the topic of EIA. In addition, the Magic Quadrantmethodology includes the solicitation of references from each vendor; for this Magic Quadrant,Gartner conducted more than 100 reference checks from a set of customers provided by eachvendor.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. Thisincludes current product/service capabilities, quality, feature sets, skills and so on, whetheroffered natively or through OEM agreements/partnerships as defined in the market definition anddetailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health,the financial and practical success of the business unit, and the likelihood that the individualbusiness unit will continue investing in the product, will continue offering the product and willadvance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure thatsupports them. This includes deal management, pricing and negotiation, presales support, andthe overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achievecompetitive success as opportunities develop, competitors act, customer needs evolve andmarket dynamics change. This criterion also considers the vendor's history of responsiveness.

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Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliverthe organization's message to influence the market, promote the brand and business, increaseawareness of the products, and establish a positive identification with the product/brand andorganization in the minds of buyers. This "mind share" can be driven by a combination ofpublicity, promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to besuccessful with the products evaluated. Specifically, this includes the ways customers receivetechnical support or account support. This can also include ancillary tools, customer supportprograms (and the quality thereof), availability of user groups, service-level agreements and soon.

Operations: The ability of the organization to meet its goals and commitments. Factors includethe quality of the organizational structure, including skills, experiences, programs, systems andother vehicles that enable the organization to operate effectively and efficiently on an ongoingbasis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and totranslate those into products and services. Vendors that show the highest degree of vision listento and understand buyers' wants and needs, and can shape or enhance those with their addedvision.

Marketing Strategy: A clear, differentiated set of messages consistently communicatedthroughout the organization and externalized through the website, advertising, customerprograms and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct andindirect sales, marketing, service, and communication affiliates that extend the scope and depthof market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery thatemphasizes differentiation, functionality, methodology and feature sets as they map to currentand future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meetthe specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise orcapital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet thespecific needs of geographies outside the "home" or native geography, either directly or throughpartners, channels and subsidiaries as appropriate for that geography and market.

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