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SaaS vs. On-premise archiving – the debate rages

During my industry analyst days, I got some perfunctory inquiries on hosted vs. on-premise email archiving. There was clearly some interest in software-as-a-service (SaaS), but there wasn’t much of a debate – on-premise archiving was the way to go for 85% of clients. Why? Mainly because they wanted mailbox management for end-user access to email, fast query times for eDiscovery, and the ability to customize the software to their specific needs.

Disclaimer: I work for an on-premise archiving vendor, so I technically am biased. However, I believe SaaS does have future in the archiving market…it’s just not pragmatic today for organizations that want to facilitate end-user access and eDiscovery.

As Nick Mehta (CEO of LiveOffice and a guy I highly respect) points out in his blog, SaaS archiving does provide the benefit of being up and running faster and cheaper than on-premise archiving. But, there are many functions that SaaS archiving does not provide today:

  1. Opportunity to develop internal expertise for advanced queries
  2. Mailbox management
  3. Integrated content archive (e.g. file system content, SharePoint)
  4. Integrated disaster recovery
  5. Offline access to mail for knowledge workers

    Plus, hosted email archiving vendors have a difficult time meeting SLAs (this is know first-hand from my industry analyst experience – it was a huge complaint of users), rely on journaling which puts a huge strain on the email server, and suffer from poor query speeds (some eDiscovery searches take hours to run). Thus, for organizations that need to manage eDiscovery and end-user access to mail, SaaS archiving does not make sense today.

    What does make sense is a hybrid solution, where an on-premise archiving product provides mailbox management, message extension, and eDiscovery while the hosted solution becomes a “tier” of storage where mail subject to compliance (e.g. has to be held by a 3rd party) or very long-term retention is sent to the hosted archive.

    As always, your thoughts are welcome…SaaS archiving is an emerging market that will certainly continue to cross paths with the on-premise market. At the very least, it will be fun to watch things play out.

    Happy 4th of July to all!


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