- Forrester Councils
- Councils Overview
- log in
Posted by Brian Hill on September 3, 2009
This week, EMC announced that it plans to acquire privately-held eDiscovery vendor Kazeon Systems, Inc. The deal, expected to close in Q3 2009, grew from an existing EMC-Kazeon partnership and will enable EMC to provide a range of natively developed applications to support eDiscovery needs.
As enterprises work to cut eDiscovery costs, the broader market for mitigating legal risk is expanding at a rapid clip. The market, however, remains highly fragmented, with a mix of big players and a multitude of smaller providers. Over the past couple of years, the market has been going through some growing pains and continues to consolidate. In exchanges with a large number of enterprises, buyers report frustrations in integrating applications that support disparate steps of the eDiscovery process – many are also increasingly questioning the long term viability of some of the smaller providers. As larger vendors look to round out and rationalize their portfolios, this consolidation trend holds promise in potentially easing enterprise eDiscovery integration headaches.
So will this deal prove to be positive for EMC customers seeking to mitigate legal risk and drive down eDiscovery costs? My immediate reaction is that the acquisition will be good for both EMC and its customers in the long term. Here’s why:
In the near- and mid-term, EMC will need to focus on clarifying its marketing messages and delivering on a revised product road map. Enterprises should exercise caution and closely monitor execution. Here’s why:
Acquiring Kazeon improves EMC’s standing in the eDiscovery market and improves its prospects for delivering effective solutions. Success will require tight portfolio integration, clear and effective communications describing EMC’s expanded portfolio, and retaining key Kazeon personnel.
What do you think the acquisition means for the eDiscovery market? Please write me at email@example.com.
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »