Presented by:

1

Best Prac t ices for Long Term Digital Archival

In the beginning there was a stone and a tablet…

Peter MojicaPeter MojicaVP, Product Strategy, MgmtVP, Product Strategy, MgmtAXS-One Inc.AXS-One Inc.www.axsone.comwww.axsone.com

Presented by:

a day in the life…a day in the life…

CEO

What now?

Audit?

CEO

CIO

CIO

No problem

A fewhourslater

A fewhourslater

CEO

CIO

CEO

WOW

SSS u p e rC IO

E-mailSubject: MEMO

Hmmm???

HoldOn!

CIO issweating

E-mailSubject: MEMO

CIO

Find MEMOhut–hut…

32 DaysLater

32 DaysLater

Found the MEMO

yawn

Finally,I can gohome

CEO

CIO

MEMOSubject:

Hmmm???

TransactionTransactionTransactionTransactionTransactionTransactionTransactionTransactionTransaction

Don’tGo

No, notagain!

MEMOSubject:

TransactionTransactionTransactionTransactionTransactionTransactionTransactionTransactionTransaction

73 DaysLater

73 DaysLater

CIO

I should’ve considered

the bigger picture…

CIO

CIOCIO

CIO on therun. . . c’yaCIO on therun. . . c’ya

I should’ve considered

the bigger picture…

perspect ives

morgan stanley

convergence

opposing camps

Print this article Close This Window

Morgan Stanley case highlights e-mail perilsFri May 20, 2005 5:45 PM BST

By Michael Christie

MIAMI (Reuters) - The $1.45 billion judgement against Morgan Stanley for deceiving billionaire Ronald Perelman over a business deal has a lesson all

companies should learn -- keeping e-mails is now a must, experts say.

Banks and broker-dealers are obliged to retain e-mail and instant messaging documents for three years under U.S. Securities and Exchange

Commission rules. But similar requirements will apply to all public companies from July 2006 under the Sarbanes-Oxley corporate reform measures.At the same time, U.S. courts are imposing increasingly harsh punishments on corporations that fail to comply with orders to produce e-mail documents, the

experts said. Where judges once were more likely to accept that incompetence or computer problems might be to blame, they are now apt to rule that non-compliance is an indication a company has something to hide."Morgan Stanley is going to be a harbinger," said Bill Lyons, chief executive officer of AXS-One Inc. <AXO.A>, a provider of records retention software systems.

"I think general counsels around the world are going to look at this as a legal Chernobyl.“ Wednesday's $1.45 billion verdict against Morgan Stanley in West Palm Beach, Florida, was the product of just such a negative ruling on e-mail retention, which is also expected to form the backbone of the Wall Street firm's appeal. Circuit Court Judge Elizabeth Maass, frustrated at Morgan Stanley's repeated failure to provide Perelman's attorneys with e-mails, handed down a pretrial ruling that effectively found the bank had conspired to defraud Perelman when he sold Coleman Co. to appliance maker Sunbeam Corp. in 1998. Morgan Stanley was working for Sunbeam, which entered bankruptcy in 2001, rendering worthless the shares Perelman had received in part payment for Coleman. In a rare step, Maass switched the burden of proof to Morgan Stanley, and instructed the jury solely to decide whether Perelman had relied on Morgan Stanley. Morgan Stanley says that ruling denied it a fair trial. But Eric Rosenberg, a former litigator with Merrill Lynch and now president of e-mail policy consultants LitigationProofing, said Maass was within her rights to rule as she did and could have even taken a more drastic step of issuing a default judgement and taking the verdict out of the jury's hands. Other cases have also resulted in rulings on e-mails. Last July, U.S. District Judge Shira Scheindlin found that Swiss bank UBS <UBSN.VX> had willfully destroyed potential e-mail evidence in a sex discrimination case brought by equity saleswoman Laura Zubulake. The judge ordered UBS to pay Zubulake's costs, and a jury later awarded her $29.2

million. Experts said e-mail retention could be a double-edged sword if not accompanied by corresponding training for employees on the legal implications of e-mails they send. When New York Attorney General Eliot Spitzer investigated the research divisions of Wall Street firms five years ago, he fined Morgan Stanley a little under $10 million for not having a proper e-mail retention policy in place. Merrill Lynch, however, which did have good backup systems and was able to produce relevant e-mails, had to pay over $100 million because some e-mails contained compromising material. "I guess I would put it as 'no good deed went unpunished'," said former Merrill Lynch counsel Rosenberg. Jay Ritter, a professor of finance at the University of Florida, said a danger was that among millions of legitimate e-mails, investigators might find one flippant comment from a low-level

manager and take it as reflecting company policy. "There's a reason why certain people, why lawyers like to talk on the phone rather than have any written record of conversations," Ritter said.

May 2005May 2005

Mar 2007Mar 2007

A manager is l ike a coach.   I t ' s the coach's job to put his/her strongest assets on the f ie ld, whether the chal lenge is offens ive or defensive.

So what’s the point?

Would a more str ingent records enforcement program negated any of the f indings?

Would a more str ingent records enforcement [a perfectly ordered e lectronic records house] program favorably altered “the course” of l i t igat ion?

Is defense the best offense?

• What are you doing today for long term archival & compliance ?• This includes corporate records management, SEC and other

regulatory requirements, e-mail and yes, Sarbanes-Oxley, and worse yet – discovery requirements for legal

• What should we be planning for tomorrow ?• What are the IT consequences for getting it wrong.

Today’s Enterpr ise Focus. I s i t a l l over the place?

Where is the hockey puck within your organization?Where is the hockey puck within your organization?

"A good hockey player plays "A good hockey player plays where the puck is. A great where the puck is. A great hockey player plays where the hockey player plays where the puck is going to be."puck is going to be."

Wayne GretzkyWayne Gretzky

f inding the “puck”

further industry consolidation is inevitable

Message

Management

LegalLegal

ResponseResponse

SoftwareSoftware

Storage

technologies

BackupBackup

RecoveryRecovery

ArchivalArchival

technologiestechnologies

RecordsRecords

ManagementManagement

Document Document

ManagementManagement

SearchSearch

technologiestechnologies

BusinessBusiness

IntelligenceIntelligence

Hygiene

Anti-Virus

so why is this so hard?

C o r p o r a t e co n f u s io n in s o l v i n g t h e p r o b l e m o f a rc h i v a l

Many teams chas ing the same bal l !I t ’s a team?It ’s organized?It ’s in-fact dis jointed!Competing requirements !Who is in charge? L e g al

Storage Manager

Messaging Manager

C o mp l i a n c e M a n a g e r

Records Information Manager

Business vs. TechnologyC o r p o r a t e H A R M O N Y s t a r t s w it h a g r e e m e n t o n wh a t t h e p r o b l e m y o u a r e t r y i n g t o s o lv e i s … t h e n p r i o r t i z e

Focus on Security – Manage security across the IT Landscape

Tornado’ of ‘Connected’ people, devices, processes & enterprises approaching

Increased volume exasperates traditional solutions

Scarce $ and skills increases risk to organization

Increasing burden on all of us = unfriendly security

Mandated transactions and regulations are increasing

Musts:• Radically reduce people errors through

automation and standardization• Extend customer’s response capabilities &

accelerate their implementation• Systemically Shift burden from People to

Systems • Decrease TTV & Cost of Robust Solutions

: Outcome Increas e cus tomers capability to focus on the ir Bus ines s Dec is ions

Industry Roll out of security

Data Integrity

Identity Integrity

Process Integrity

Business Continuity

Increas ed complexity

Manage Security and Access

Maintain Evidentiary Weight

Secure business processes and critical assets

Take Away

so who has the puck?

Legal discovery requires a central ized approach to archiv ing, searching, legal holds and destruct ion True False

Storage and appl icat ions are intr insical ly t ied together as one whole unit – they are no longer separate and dist inct True False

Venture to guess?

??

The Industry for Archival

What Do Canals and Railroads Have in Common With the Archival and Compliance Industry ?

* Andy Grove, Intel CEO conference 2001

I recently heard Andy I recently heard Andy Grove, of Intel, say "The Grove, of Intel, say "The convergence of convergence of computers, telephones, computers, telephones, and cable TV is like and cable TV is like water meeting land -water meeting land - new life forms are new life forms are likely to be createdlikely to be created."."

TIME

As it relates to our long term digital records management of ESI

3 things to talk about today

Perspectives

Problems

Solut ions

Is this the problem?

if yes, then we are

spending 100% of our time to solve a very small percentage

of the problem

the reality is that companies trust their employees and most all employees do the right thing, trust is not the issue

Fundamental Changes in Archival that have caused industry disruption

“With respect to archival technology, what once was, no longer is, and the future is still evolving….”

Fundamental Pr inciples

Micro-Fiche Reader and Micro Fiche. Once you start using micro-fiche you will wonder how you ever got along without one. These 5 by 7 inch sheets of film will show you where every part goes and give you the part number. Very handy when a basket case comes in. You can get ALL the Yamaha shop manuals on micro-fiche. Sweet ! A Micro-Fiche reader can cost $300.00 to $700.00 new, so go to a used office furniture supply place and they will probably have one for $100.00. Fiche decks cost $100.00-$200.00 and are worth every penny. You can also get individual fiche too. I bought my first micro-fiche reader from a used office supply place for $100.00. Used it for 15 years and then got a better one in a garage sale for $25.00 !

http://www.dansmc.com/

< 70’s – 80’s

Early Mainframe Technologies

Fundamental ly soundThe world was character ce l lIndexing was “key f ie lds”I t workedTape was usedCentral ized (akin to Google)

80’s

Open Systems, C, Java, Unix

Fundamental ly soundThe world was character ce l lIndexing was “key f ie lds”I t worked, why?Tape was usedMove to decentral izationMany archivesStart of Federated Paradigms(akin to Google)

90’s

Web, HTTP

Fundamental ly soundDistr ibutedIndexing was “key f ie lds”HSM & Tape was usedMove to decentral izationMany archivesStart of E lectronic Bi l l PresentmentRealizat ion of re-purposing of data

mid to late 90’s

What changed?

Before Applications and Data Archive DisconnectedDataVolumeData SourcesMethods of acquis it ionIndexingSecurityIntegrationStorageRetr ievalsApplication complexity Categorization Legal Holds Extraction

AfterApplications L inked to ArchiveStorage Linked to Archive

Volume 50,000 users * 40 msgs per * 240 days per year

APPROXIMATE: 100TB per year

Archive software responsibi l i ty has changed signif icantly? No longer just “process oriented”

What is the heart of your digital archive?Major components :

ARCHIVE SERVERSTORAGE STORAGE APIINDEX SOFTWAREMIDDLEWARE COMPONENTSBUSINESS APPLICATION LAYER

The heart of the matter !

KEYS TO SUCCESS

ARCHIVE IS THE HEART, EVALUATE FOR SCALE, PERFORMANCE AND TCOUNDERSTAND STORAGE TIER CONSQEUNCES FOR MIGRATION

Things to remember

Th e wh ole is greater th an the sum of the parts

A RCHIVE SERVER IS NO LO NG ER A LO OSELY C OUPLED TECHN OLO G Y – IN OR DER TO SUCEED IT MUST HA VE TIG HT INTERG RATION WITH KEY SYSTEMS Scale is critical, even for smaller organizations.

IN DEXING ENG INE is cr i t ical to lon g term accessib i l i ty, the s igni f ican t chan ge is FULL TEX T in dexing vs . KEY F IELD in dexing, th e migrat in g peta-bytes o f lon g-t erm data is no t v iable tod ay for th e average corporat ion.

STO RAG E TIER is not lo nger a loosely coupl ed te ch nology, i t i s a cr i t ical cho ice as i ts in tr insical ly t ied to the HEA RT of the syst em, the arch ive sof tware t ier .

A PPLICATIO NS must be a f rame work for d evelopin g fu tu re appl icat ions an d accommod at ing chan ge as n ormal development

META-DATA MANA GEMENT an d admissibi l i ty must be consid ered th rough out th e architecture.