A new pricing model announced by Guidance Software allows companies to use its EnCase® eDiscovery on a pay-per-use basis. Hitherto, EnCase® eDiscovery has been available to end-users only by outright purchase. The new structure gives them the option of paying only for what they use, with no up-front licence fees.
The charges are tied to the amount of data searched, collected, processed and put into load files. The monthly invoices break down the usage by matter, which should make it straightforward to recharge the costs internally or to insurers.
Outright purchase of a perpetual licence remains an option for those with the throughput to justify capital budget monies. For those who opt for the new pricing method, the usage rates decrease with higher levels of commitment.
Guidance Software are sponsors of the e-Disclosure Information Project, and I saw CEO Victor Limongelli at the company’s headquarters in Pasadena a few days ago. He was eloquent on the subject of the costs-control implications of the new pricing model, as much as anything because it allows companies to feel their way into the technology without the hurdle of a capital spend which usually crosses departmental boundaries. The ability to tie the outlay to both the matter and the appropriate internal division is likely to be attractive.
The move comes at a time when an increasing number of corporations are bringing whatever they can of this work in house. Much of the talk at ILTA in Dallas last week was about how this is affecting the employment market, as scarce skilled staff are recruited from law firms and suppliers. I am not the only one to have predicted a similar move in the UK. UK law firms would do well to work on the hiring – and retention – of litigation support staff.
See Guidance software’s press release for more information about the pricing move.