Tag Archives: legalops

Why Most eDiscovery Tools and Online Archiving Offerings Are Terrible for Information Governance

By John Patzakis and Chas Meier

Many organizations assume that information governance initiatives—such as data privacy audits, purging ROT (Redundant, Obsolete, or Trivial) data, merger and acquisition-driven data separation, or data breach impact assessments—can be effectively addressed using eDiscovery tools or online archiving platforms. After all, eDiscovery solutions excel at identifying and searching through large volumes of unstructured data in high-stakes, reactive legal scenarios.

However, there is a critical distinction between eDiscovery and information governance workflows that organizations must understand when selecting the right solution. eDiscovery typically involves copying large volumes of data at multiple stages and continually moving that data upstream, eventually into third-party cloud platforms for processing and hosting. In contrast, duplicating and moving massive data sets is often the last thing you want to do in information governance projects, which are typically large-scale, enterprise-wide initiatives.

In fact, here are five major reasons why most eDiscovery tools and online archiving solutions are terrible for information governance. These tools:

  1. Dramatically Increase Risk
    Consider a scenario where an organization suffers a data breach and must assess 100 terabytes of data to identify compromised PII and determine reporting obligations. Most eDiscovery tools require a full copy of this data to be made and uploaded into a third-party environment—doubling the volume of sensitive material and compounding the risk. Instead of helping, this kind of mass data duplication exacerbates the compliance and privacy risks that governance initiatives aim to reduce. In fact, such inefficient data duplication directly conflicts with GDPR principles, which require data minimalization and proportionality.
  2. Are Exorbitantly Expensive
    Information governance is not a small, tactical effort—it is a broad, enterprise-wide initiative. At X1, we rarely see governance projects involving less than 50 terabytes of data. Using traditional eDiscovery pricing models, even with volume-based discounts, these projects can quickly rack up tens of millions of dollars in costs due to unnecessary processing, storage, and hosting workflows designed for litigation—not governance.
  3. Can’t Meet Time Constraints
    Copying, transferring, uploading, and indexing 100 terabytes of data into a third-party cloud platform can easily take six months or more, even in an ideal scenario. That timeline is incompatible with the urgent nature of most information governance use cases, such as data breach impact assessments or M&A-related audits. Worse yet, by the time the data has been copied and indexed, it will likely already be stale—undermining the integrity of the project from the outset.
  4. Create Remediation Roadblocks
    Suppose you incur the costs and risk to copy and upload a full data set in an external review platform and successfully identify sensitive or outdated data for remediation. Now what? You are merely working with copies of the data. The originals remain distributed across Microsoft 365, file servers, laptops, and other locations. Trying to trace back and manually remediate live data sources is costly, disruptive, and error-prone—defeating the very efficiency goals of the governance project.
  5. Do not Support Microsoft 365 Effectively
    Many so-called “governance” tools are simply rebranded email archiving systems that rely on bulk copying data out of Microsoft 365. Not only is this approach expensive and inefficient, but it also creates serious technical and compliance risks. Microsoft 365 does not support mass data exports at scale without significant friction, and errors are common—as illustrated in FTC v. Match Group, No. 3:19-CV-2281-K, 2025 WL 46024 (N.D. Tex. Jan. 7, 2025). In that case, Microsoft Purview exports into an archival system failed, resulting in court-imposed discovery sanctions. If a solution does not support index-in-place capabilities—allowing analysis directly upon the native data—it is simply not viable for modern information governance needs.

A Different Approach is Required
Information governance requires agility, precision, and a fundamentally different approach than traditional eDiscovery processes. Organizations must be wary of legacy eDiscovery tools and outdated archiving platforms masquerading as governance solutions.

X1 Enterprise was purpose-built to address the challenges and inefficiencies that plague traditional eDiscovery tools and archiving platforms when applied to information governance. At the core of the X1 Enterprise Platform is its patented micro-indexing architecture, which enables organizations to search, analyze, and act on data in place, without needing to first copy, move, or centralize it.

This index-in-place capability means X1 can connect directly to endpoints, file shares, Microsoft 365, and other enterprise data sources to perform fast, scalable, and highly targeted data sweeps and analysis—without duplicating the data or exposing it to unnecessary risk. Whether you are performing a data privacy audit, a breach impact assessment, or an M&A data separation project, you can run real-time searches across tens of terabytes and thousands of custodians—with results returned in minutes, not months, and the data remediation performed in-place.

By eliminating the need for data movement, X1 avoids the five major pitfalls of legacy tools:
Risk: No mass duplication of data, reducing exposure and aligning with GDPR and other regulatory requirements.
Cost: No massive ingestion or hosting fees—X1 dramatically lowers total project costs by working directly with live data.
Time: Deploy and execute governance initiatives in a fraction of the time required by traditional methods.
Remediation: Act directly on live data—flag it, move it, delete it, or apply tags—in the original source locations.
Microsoft 365 Compatibility: X1 integrates natively with Microsoft 365 and other systems without requiring cumbersome exports or expensive additional licensing and services, enabling robust, reliable governance at enterprise scale. Simply put, we believe X1 provides the best available support for M365 data sources.

In short, X1 Enterprise offers a faster, safer, and far more cost-effective way to execute complex information governance projects—turning what used to be massive, reactive, months-long efforts into streamlined, proactive, and strategic workflows.

Learn more about how X1 Enterprise can streamline your next information governance project. Schedule a demo today at sales@x1.com or visit www.x1.com/solutions/x1-enterprise-platform.

Leave a comment

Filed under Best Practices, CaCPA, Cloud Data, Corporations, ECA, eDiscovery, eDiscovery & Compliance, Enterprise eDiscovery, ESI, GDPR, Information Governance, law firm, m365, Preservation & Collection, Records Management

Modernizing eDiscovery: A Huge Strategic Win for Legal Operations Executives

By John Patzakis

Modern In-Place Data Discovery

For today’s corporate legal departments, controlling runaway costs is no longer optional — it’s a mandate. Nowhere is this more evident than in the spiraling expenses for outsourced eDiscovery and information governance services. While litigation and regulatory demands continue to grow, many organizations still rely heavily on costly outside service providers to identify, collect, process, and produce electronically stored information (ESI). This outdated model drains budgets, strains timelines, and introduces unnecessary risk.

Enter the modern legal operations executive. One of their core responsibilities is to identify inefficiencies and leverage technology to reduce costs and streamline workflows. Modernizing eDiscovery and information governance processes is a very fertile and high-impact opportunity to do exactly that. Doing so can save organizations tens of millions of dollars in hard (actual) costs. Here’s how:

1) Bring eDiscovery In-House and Slash Costs with the Right Technology

Outsourced eDiscovery vendors typically charge steep hourly rates and volume-based markups for even routine tasks like identifying and collecting custodial data. Yet studies — and real-world case studies — consistently show that corporations can reduce eDiscovery costs by up to 90% by adopting targeted collection and in-place search technology.

Solutions like X1 Enterprise enable legal and compliance teams to index and search data in place — without cumbersome, time-consuming manual collection. By deploying this technology internally, the legal operations team can replace costly third-party workflows, including highly inefficient Microsoft 365 processes, with faster, defensible, and far less expensive processes. This means greater control over timelines and budgets, and reduced exposure to data security risks associated with handing over large volumes of sensitive information to multiple vendors.

2) Drive Broader Efficiencies Beyond Litigation

The benefits of a modern eDiscovery platform extend far beyond document production in a lawsuit. The same technology can be leveraged for critical information governance and data compliance functions. For example, when a company needs to respond to internal audits, regulatory data access requests, or data privacy audits and inquiries, in-place search capabilities allow teams to quickly find and manage relevant data without reinventing the wheel each time.

Legal operations executives can champion the use of enterprise eDiscovery tools for these broader use cases, creating synergies between compliance, privacy, IT, and legal teams. This not only reduces redundant spending on separate point solutions but also ensures better control of data and improved risk management across the organization.

3) Partner with Finance to Uncover Hidden Cost Savings

A key role of legal operations is to align legal spend with broader corporate financial goals. When evaluating an in-house eDiscovery solution, legal ops leaders should engage their CFO early. One common pitfall is focusing solely on capital IT budgets while overlooking how much is siphoned away from the legal operating budget to fund expensive outsourced eDiscovery services.

In one real-world example, a company assumed they could not afford an internal solution based on their limited IT budget. However, when they worked with their CFO to analyze total eDiscovery spending, they discovered they were paying tens of millions annually from a separate operating budget to outside providers. Redirecting even a fraction of this spend towards a robust internal platform not only paid for the technology but will yield millions in net savings — year after year.

Final Thoughts

For legal operations executives looking to deliver immediate cost savings, increase efficiency, and elevate the department’s strategic value, modernizing eDiscovery and information governance processes is perhaps their greatest opportunity for an immediate and significant impact. By bringing the process in-house with proven technology like X1 Enterprise, expanding its use to multiple compliance and governance scenarios, and partnering with finance to eliminate wasteful spending, legal operations can transform eDiscovery and information governance from a financial drain into a model of operational excellence.

Interested in learning more about how to achieve this transformation? Schedule a briefing today at sales@x1.com or visit www.x1.com/solutions/x1-enterprise-platform.

Leave a comment

Filed under Best Practices, Cloud Data, Corporations, Data Audit, ECA, eDiscovery, eDiscovery & Compliance, Enterprise eDiscovery, Enterprise Search, ESI, Information Access, Information Governance, Information Management, m365, Preservation & Collection, Records Management

X1 Achieves Unmatched Throughput and Results in Several Recent M365 eDiscovery and Information Governance Engagements

By John Patzakis and Chas Meier

As discussed previously on this blog, X1 and our active enterprise customers believe X1 Enterprise Collect is the best solution available to address M365 data sources as well as on-premises sources such as laptops and file shares. In recent weeks, our customers and partners have executed several projects on a massive scale and have captured and documented X1’s performance metrics.

No other solution in the industry can index data across the enterprise as fast or as scalable as the X1 Enterprise platform, including Microsoft Purview Premium. When compared to Microsoft Purview, with its built-in architectural constraints and throttling limitations, X1 can index nearly eight times the daily volume of Purview or any other competitive “connector” technology can achieve in the market. X1’s distributed index-in-place methodology, combined with horizontal scaling of our index hosts, make X1 the only solution truly capable of handling the rapid indexing, identification, searching and collecting/remediation of mass data sets in the TB’s or PB’s across the modern enterprise. X1 effectively addresses cloud and on-premises data sources in a unified manner, including distributed endpoints, network file shares, M365 data sources including Mail, OneDrive, Teams, and SharePoint, as well as other cloud data sources.

In several recent large-scale eDiscovery and information governance projects, X1 Enterprise Collect, on average, was able to collect and index M365 data (MS Mail [including archived mail and modern attachments] Teams, One Drive and SharePoint) at a rate of approximately 350 GB per day. This is nearly 8 times faster than Microsoft Purview, with its documented throughput limitations at 2GB per hour. X1 can achieve even faster throughput by scaling out virtual cloud computing resources.

Daily indexing volumes for endpoints and on-premises file shares vary due to the performance characteristics of each machine, but X1 indexes and searches endpoints in parallel yielding extremely high aggregate daily indexing and collection throughput.

Detailed documentation on these metrics and a further briefing on these engagements can be provided upon request.

X1 achieves such scalability through a decentralized approach that does not rely on the M365 or Purview search Index, which has known issues with the number of file types supported, consistency of search results, accuracy, and throughput. X1’s approach enables a very scalable, accurate, defensible, and robust indexing and data collection at unmatched speeds.

In addition to greatly reducing risk, X1’s capabilities also enable massive cost savings. X1 Enterprise Collect significantly streamlines the eDiscovery workflow by bringing targeted collection results directly into the review platform, thereby eliminating over collection, over processing, and over importing just to cull. X1 will populate ESI (Electronically Stored Information) straight into Relativity from an X1 collection without multiple hand offs, extensive project management and inefficient data processing.

The ability to collect data directly and transparently from custodian laptops, desktops, M365 and other cloud sources into a RelativityOne/Relativity workspace is a game-changer that enables legal and compliance teams to begin review in hours rather than weeks. As facts become known and collection focus changes, X1 allows teams to pivot and respond in hours. With the ability to efficiently take multiple bites of the apple, X1 enables teams to start fast and stay agile.

For a demonstration of the X1 Enterprise Collect Platform, contact us at sales@x1.com. For more details on this innovative solution, please visit www.x1.com/x1-enterprise-collect-platform.

Leave a comment

Filed under Best Practices, Cloud Data, Corporations, ECA, eDiscovery, eDiscovery & Compliance, Enterprise eDiscovery, ESI, Information Governance, MS Teams, OneDrive, Preservation & Collection, SharePoint

Modern, Targeted ESI Collection Can Cut eDiscovery Costs by Over 90 Percent

By John Patzakis and Chas Meier

eDiscovery can be an expensive and time-consuming process when traditional data collection methods are employed. With legacy processes, it can take weeks for electronically stored information (ESI) collections to finally end up in review. Time is money, and utilizing dated processes can dramatically increase costs as well as risk. One of the biggest drivers of excessive eDiscovery costs is over-collection of irrelevant or unnecessary information. This in turn leads to a larger amount of data entering the processing and initial review funnel.

In fact, old school manual collection efforts require employing multiple tools, data copies, and manual steps into your litigation workflow. The majority of ESI processing consists of data culling and filtering, deduplication, text extraction, metadata preservation, and then staging the data for upload into a review platform, often in the form of a load (DAT) file. Some ESI processing solutions require deployment of non-integrated on-premise hardware appliances that further increase costs and add time delays. Manual collections, multiple generations of data duplication, and disjointed handoffs exponentially increase costs and risk while significantly delaying documents being available for review.

If you are still using stand-alone processing tools, you are doing it wrong and subjecting your clients to extensive costs and time delays. Modern collection technologies combine targeted collection with in-place processing of data which is automatically collected, processed, and uploaded into a review platform such as Relativity in one fell swoop.

The graph below established that the cost for collection, processing and first month hosting under a traditional preservation process can be upwards of $12,000 per custodian:

Properly targeted preservation initiatives are favored by the courts for purposes of civil eDiscovery and enabled by next generation software to search data sources quickly and effectively in-place throughout the enterprise. The value of targeted and proportional preservation is recognized in the Committee Notes to the recent FRCP amendments, which urge the parties to reach agreement on the preservation of data, keywords, and other metadata to identify responsive materials. See also, In re Genetically Modified Rice Litigation, (“Preservation efforts can become unduly burdensome and unreasonably costly unless those efforts are targeted to those documents reasonably likely to be relevant or lead to the discovery of relevant evidence.”)

X1 Enterprise Collect significantly streamlines the eDiscovery workflow with integrated culling and deduplication, thereby eliminating the need for expensive and cumbersome ESI processing tools. That way, the ESI can be populated straight into Relativity from an X1 collection without multiple hand offs, extensive project management and inefficient data processing.

The ability to directly and transparently collect data from custodian laptops, desktops, Microsoft 365 and other cloud sources into a RelativityOne / Relativity workspace is a game-changer that enables Attorney’s to begin review in hours rather than weeks.

The second chart shows how this streamlined approach, based upon a detailed ROI analysis, reduces eDiscovery costs by over 90 percent:

So, in terms of the big picture, X1 Enterprise Collect provides a complete platform to implement a properly targeted preservation strategy in the enterprise enabling organizations to save a lot of time, save a lot of money, and be able to make faster and better decisions.

When you accelerate the speed to review and eliminate over-collection and inefficient processing, you gain much better early insight into your data and can increase efficiencies on many levels.

Finally, the calculations represented in the charts were generated from a customizable ROI cost calculator created by Chas Meier, based upon his more than 20 years’ experience in eDiscovery service provider roles. If you would like a copy of this ROI calculator, please contact Chas at CMeier@x1.com.

Leave a comment

Filed under Best Practices, Cloud Data, Corporations, ECA, eDiscovery, eDiscovery & Compliance, Enterprise eDiscovery, ESI, Information Management, Preservation & Collection