There has been much discussion within the electronic discovery industry regarding the demise of the “per gigabyte” pricing model, and understandably so given the multi-million dollar price tags associated with large e-discovery projects. Despite the commoditization and downward pricing pressure facing all vendors, average price points simply have not scaled to meet the demands associated with the explosive growth in discovery data volumes. Not only has this created intense sticker shock for law firms and their clients, but it also creating a significant challenge to vendors as they balance competitive pricing with overall value provided to the client and the need to make enough profit to sustain the business.
So my question to the industry and our clients – what’s next? We have grown from charging “per page” in the early days of e-discovery to “per gigabyte” pricing today. Are firms and corporations willing to work with vendors in the early stage of a matter to develop a value-based flat rate? Are software developers willing to move from unit-based pricing to a profit-sharing or subscription model?
I will continue to follow the discussion and welcome comments regarding the same.
Brad Mixner, Founder & President, Global EDD Group | brad.mixner@globaledd.com