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Aaref Hilaly, president and CEO of Clearwell, said during the analyst call that his company prices its technology differently than the method most services companies use.
Unlike most similar software, where price depends on when its used, Clearwell's software is licensed according to capacity, and customers can use as much of that capacity as needed over the time the license is in effect, Hilaly said. For example, if a customer buys a license for 1 TB of data, it can do discovery on up to 1 TB. Once operations on that data is done, that TB can be freed up for another project at no additional charge.
"So when our customers compare the price of Clearwell to traditional service providers' (prices), our competitors are priced by the 'drink,'" he said. "We charge for up to a certain capacity."
At least one competitor was quick to respond to Symantec's planned acquisition of Clearwell.
Steven d’Alencon, chief marketing officer of CaseCentral, a San Francisco-based developer of an integrated eDiscovery platform, wrote in a statement the acquisition of Clearwell shows that a serious consolidation of the eDiscovery market has begun.
Larger software vendors now see eDiscovery as a crucial piece of a larger governance, risk and compliance offering, and the Clearwell acquisition by Symantec will lead to more intense competition and more consolidation of the market, d'Alencon wrote.
“This acquisition is extremely positive for CaseCentral as it positions us as the only remaining independent top-tier eDiscovery vendor with a cloud-based delivery model," d'Alencon wrote.
Once the acquisition of Clearwell is complete, it will become part of Symantec's Information Management Group, which is run by Deepak Mohan, senior vice president.