The Business Case for
HPE ControlPoint
White Paper
Revision: 3
Date created: 26 September 2016
Principal author: Nigel Carruthers-Taylor
iCognition reference: 15/16495
Executive Summary
The Business Case for HPE ControlPoint Page 2 of 18
Table of Contents
Executive Summary ....................................................................................................................... 3
Business Case for HPE ControlPoint ................................................................................................ 5
A Digital Recordkeeping Platform ................................................................................................ 5
Digital recordkeeping is the core ................................................................................................. 7
Products to supply the Platform .................................................................................................. 8
HPE ControlPoint Cost/Benefit ...................................................................................................... 11
Summary ................................................................................................................................ 11
Details .................................................................................................................................... 12
Executive Summary
The Business Case for HPE ControlPoint Page 3 of 18
Executive Summary
Based on an organisation of 1500 staff and around 25Tb of information in target
repositories, and using a conservative estimation, the implementation of HPE ControlPoint
produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of $1.5M, and a benefit-cost ratio of 4.15.
Discount Rate 4% 8% 10%
NPV $1,527,232 $1,330,071 $1,244,290
PV of Total Costs -$484,776 -$452,796 -$438,399
PV of Total Benefits $2,012,008 $1,782,867 $1,682,689
Benefit Cost Ratio 4.15 3.94 3.84
Costs:
Software licences
Setup and maintenance of software
Quantifiable benefits:
Storage savings of $343K over 5 years
Discovery/Freedom of Information (FOI) savings of $1.9M over 5 years
Non-quantifiable benefits:
Managing security and privacy information
Increased productivity for end users
Compliance and regulation risk avoidance.
Digital information in most organisations is distributed across multiple repositories. Only about
30% of this has business value, but the ability to identify and harness this value is difficult.
This also means 70% is redundant, trivial and obsolete information that carries a significant
cost to store and manage.
To manage this, a strategy to implement ‘trusted sources’ of
information underpinned by a digital recordkeeping platform is
recommended.
A digital recordkeeping platform identifies records across multiple information repositories,
such as file stores, email, SharePoint and email, and either manages them as records within
these repositories, or migrates them into a central records repository.
Executive Summary
The Business Case for HPE ControlPoint Page 4 of 18
This central records repository is a digital recordkeeping solution that assists users to save
documents (including emails) directly to it, and also has automated processes to manage
records of high business value stored in other systems. HPE Records Manager/Content
Manager (HPE RM/CM) is such a solution that links to a number of business systems or
information repositories to form an overall Digital Recordkeeping Platform.
HPE ControlPoint links to HPE Records Manager/Content Manager to
manage and control records across multiple repositories. It analyses
the information environment, assesses the value of the information,
finds security related information, controls records through policy, and
harnesses the information for reuse.
While there may be a number of products that make up the Digital Recordkeeping Platform, in
this analysis only the HPE ControlPoint product is analysed to determine the product’s
individual cost-benefit.
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 5 of 18
Business Case for HPE ControlPoint
A Digital Recordkeeping Platform
Most organisations have an information management environment where information of all
forms is managed in a variety of silos and formats: recordkeeping systems, personal and
shared network drives, SharePoint, email, Financial and HR systems, and line-of-business
systems.
Digital information in most organisations is distributed across multiple
repositories. Only about 30% of this has business value, but the ability
to identify and harness this value is difficult.
The US Compliance, Governance and Oversight Counsel (CGOC) conducted a survey in 2012
that revealed on average 1% of organizational data is subject to legal hold, 5% is subject to
governmental regulatory retention requirements, and 25% has some business value. This
means that around 31% of the existing information held in file stores, email systems, and
other line-of-business systems could be considered records of true value.
If these records are not identified, managed and accessible, then the true value of this
information cannot be harnessed. Not only is this a productivity loss, but discovering and
managing these true records is a difficult problem that can carry significant cost. Further to
this, there are critical security and privacy risks in some of this information, such as
uncontrolled Tax File Numbers, credit card numbers, personal details and passwords, that
organisations need to manage to meet compliance and regulation requirements.
This also means 70% is redundant, trivial and obsolete information
that carries a significant cost to store and manage.
The flip side to this issue is that the 2012 CGOC Study pointed out that the remaining 69% of
the enterprise’s information is redundant, obsolete and trivial information that carries a
significant cost in storage and productivity. The Study concluded that this information could
be defensibly deleted without adversely affecting the organization, thus reducing the overall
digital storage footprint significantly and producing storage savings.
A digital recordkeeping platform is recommended to identify, sanitise,
manage and migrate records across multiple information repositories,
including file stores, email, SharePoint and email.
In this dynamic environment there is often an organisational culture where staff have a
freedom of choice when it comes to using systems and storing information. Therefore it is
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 6 of 18
very difficult for organisations to replace all information repositories with an enterprise-wide
Enterprise Content Management (ECM) or Electronic Document and Record Management
System (EDRMS). Instead, a digital recordkeeping ‘platform’ can be implemented to provide
ECM/EDRMS functions in targeted areas, and also be used to identify, link and manage
records in key repositories across the environment.
This fully implemented Digital Recordkeeping Platform would be a vehicle for delivering an
exciting change within the information environment and transition the organisation to digital
recordkeeping. It can deliver ‘trusted sources of information’ within the organisation, which is
where Business Information Systems are identified as ‘trusted sources’ for managing particular
information types underpinned by the Digital Recordkeeping Platform. Each ‘trusted source’
would manage the identified key information stored within it using records compliance life-
cycles.
This will allow the creation of ‘trusted sources’ of information,
underpinned by the digital recordkeeping platform.
All trusted sources can then be governed by this platform, bringing the trusted sources
together into an information management and governance framework. The platform would
enable the migration and/or capture of digital records from these sources into the
recordkeeping system, or the application of in-place recordkeeping policies to the information
in its existing repository. These elements would be brought together as a platform where
digital recordkeeping services are accessed across an integration layer within the IT
environment.
This Digital Recordkeeping Platform, as shown in Figure 1, can be expanded to include the
capture of records from business processes or from various presentation interfaces, whether
that be desktop, web, collaborative workspace, or mobile device. Therefore it is a multi-
layered platform that includes the services layer, an integration layer, a business process
layer, and the presentation layer. At each layer several products or components may exist.
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 7 of 18
Figure 1: Digital Recordkeeping Platform
Digital recordkeeping is the core
The core solution would assist users to save documents (including
emails) directly to it and become a central repository of high value
business information that meets recordkeeping requirements.
The core solution would be a digital recordkeeping solution that, out-of-the-box, provides
users with the ability to share and access information securely. The digital recordkeeping
solution could provide an enterprise system that underpins the day-to-day applications used
by staff, transparently capturing and managing digital objects. The digital recordkeeping
solution would then assist users to save information directly to it and become a central
repository of controlled and managed documents (including emails) that meets recordkeeping
requirements.
The digital recordkeeping solution would enable the management of documents and files
regardless of their format or storage location. This would include all forms of electronic
documents created via email, word processing applications, scanned documents and paper
files.
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 8 of 18
Additionally, hardcopy records can be managed through a combination of file requests and
using scanning technologies to convert paper-based information into digital forms. Once
converted into digital form the paper based copy can be legally disposed. The end goal would
be to remove the use of all hardcopy files.
Integrating or underpinning corporate applications with the digital
recordkeeping platform would provide a means for transparently
classifying, sanitising and sentencing data in those applications.
The solution is then expanded to form the Digital Recordkeeping Platform that provides a
means for transparently classifying, sanitising and sentencing data from both existing and
future corporate systems, and subsequently managing its timely destruction. This allows vital
systems such as HR, Finance and email systems, which do not have a native records
management capability, to capture, manage and control records within it, thus making them
comply to ISO16175 Principles and Functional Requirements for Records in Electronic Office
Environments.
Products to supply the Platform
HPE Records Manager/Content Manager is a strong product that can provide the required core
digital recordkeeping solution. It is well supported in the Australian and New Zealand markets,
and links to a range of information governance products to provide the Digital Recordkeeping
Platform described above.
Industry analysts Gartner and Forrester conclude that HPE Records Manager/Content Manager
is a leader in the ECM market1. ECM is a superset of EDRMS, and includes technologies such
as web publishing and scanning. In Australia HPE RM/CM is the most prevalent ECM solution,
occupying 75% of the Federal Government market, around 40-55% of the State Government
market, and similar for local governments2. The product also has good private organisation
coverage, and is prevalent in the superannuation, education, and not-for-profit sectors.
1 Gartner Magic Quadrant for Enterprise Content Management, September 2015 and The
Forrester Wave: Enterprise Content Management, Q3 2013
2 iCognition survey for Department of Communications, 2015
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 9 of 18
HPE Records Manager/Content Manager links a number of modules or
products that can help form the overall Digital Recordkeeping
Platform.
To complete the Digital Recordkeeping Platform, the following additional products could added
to the Integration Layer:
HPE ControlPoint links to HPE Records Manager/Content Manager to
manage and control records across multiple repositories. It can
analyse the information environment, assess the value of the
information, control it as records, and harness it for reuse.
HPE ControlPoint: can be used to analyse an information environment, assess the
value of information through identification and classification, identify security and
privacy related information (e.g. TFN, credit card details, personal information and
passwords), and then improve the information environment by removing redundant,
obsolete and trivial information, migrating vital information to HPE Records
Manager/Content Manager, and/or linking information in-place to HPE Records
Manager/Content Manager to apply records management compliance. The product
comes with out-of-the-box integrations to SharePoint, Exchange, File Stores, iManage
and HPE Records Manager/Content Manager, and a beta version of a Documentum
integration exists.
HP Structured Data Manager: can automate information lifecycle management
and structured data optimization by relocating inactive data from expensive tier 1
production systems and legacy databases to HPE Records Manager/Content Manager.
This enables organisations to retire outdated applications through an automated
process of extracting, validating, and deleting data.
RM Connector: allows multiple line-of-business systems to be linked to HPE Records
Manager/Content Manager to facilitate automated capture, and then exposing of
those records back into the line-of-business systems to allow easy and direct access
to records.
In this analysis only the HPE ControlPoint product is analysed to
determine the product’s individual cost-benefit.
Figure 2 shows how these products form the Digital Recordkeeping Platform.
Business Case for HPE ControlPoint
The Business Case for HPE ControlPoint Page 10 of 18
Figure 2: Products to form the Digital Recordkeeping Platform
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 11 of 18
HPE ControlPoint Cost/Benefit
Summary
Based on an organisation of 1500 staff and around 25Tb of information in target
repositories, and using a conservative estimation, the implementation of HPE ControlPoint produces a significantly positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of
$1.5M, and a benefit-cost ratio of 4.15.
Discount Rate3 4% 8% 10%
NPV4 $1,527,232 $1,330,071 $1,244,290
PV of Total Costs -$484,776 -$452,796 -$438,399
PV of Total Benefits $2,012,008 $1,782,867 $1,682,689
Benefit Cost Ratio 4.15 3.94 3.84
Costs:
Software licences
Setup and maintenance of software
Quantifiable benefits:
Storage savings of $343K over 5 years5
Discovery/FOI savings of $1.9M over 5 years5
Non-quantifiable benefits:
Managing security and privacy information
Increased productivity for end users
Compliance and regulation risk avoidance.
3 The discount rate reflects the opportunity cost of capital, i.e. the return on capital foregone in alternative use of the resources.
4 The benefits and costs are analysed to a Present Value (PV), i.e. the value on a given
date of a series of future payments, discounted to reflect the time value of money and
other factors such as investment risk. Net Present Value (NPV) is the sum of the values of the discounted cash flows.
5 Based on industry wide standard estimates, conservatively reduced and skewed over five
years.
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 12 of 18
Details
Solution
HPE ControlPoint expands a digital recordkeeping strategy enterprise wide to provide a
substantial part of the digital recordkeeping platform discussed in the first section of this
White Paper. This product is assumed to be an addition to the core digital recordkeeping
solution, HPE Records Manager/Content Manager, to provide a wider platform to:
identify records in other information systems or repositories;
place and enact recordkeeping policies on records held in other repositories;
migrate identified records into a shared recordkeeping platform where suitable.
HPE ControlPoint links to HPE Records Manager/Content Manager out of the box to manage
and control records across multiple repositories, including SharePoint, Exchange, File Stores,
iManage and HPE Records Manager/Content Manager, and a beta version of a Documentum
integration exists. ControlPoint can be used to analyse the information environment, assess
the value of the information, identify security and privacy related information (e.g. TFN, credit
card details, personal information and passwords), and improve the information environment
by migrating vital information to HPE Records Manager/Content Manager, and/or linking
information in-place to HPE Records Manager/Content Manager to better meet records
management compliance and manage information in-place as a vital corporate asset.
Key Assumptions
The following assumptions are made in this analysis:
The organisation is assumed to have 1500 staff and have 25Tb of information in
target repositories.
Only three major discovery exercises are required per year, consisting of an initial
collection of 3.5Gb of data per custodian, 23 custodians assumed, totalling 80.5 GB
total.
The discovery savings are assumed to be conservatively achieved over a period of five
years, starting at 40% in Year 1, and climbing to 80% in Year 5.
Storage saving are estimated on a conservative defensible disposal reduction factor of
40% and a deduplication factor of 15%—meaning 15% of the stored content will be
duplicate files and easily disposed of. Between these two reduction factors, a
conservative estimate of 55% reduction in stored files is assumed to occur over a five
year period.
Quantifiable Benefits
Defensibly disposing the Redundant, Obsolete and Trivial (ROT)
information from enterprise repositories conservatively removes 55%
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 13 of 18
of the stored information over a five year period. At $25/Gb, this can
be a significant saving.
1. Storage Savings
The solution can be implemented to discover and manage records of value in existing files
stores, email, and systems such as SharePoint and email. These records can be either
migrated into HPE RM/CM, or managed in place by applying policies to the records. The
remainder of the information can be defensibly deleted, giving rise to significant storage
savings.
To calculate the estimated storage saving, a conservative defensible disposal reduction
factor of 40% and a deduplication factor of 15%—meaning 15% of the stored content will
be duplicate files and easily disposed of. Between these two reduction factors, a
conservative estimate of 55% reduction in stored files is assumed to occur over a five
year period.
According to an Osterman Research White Paper, The True ROI of Information
Governance, published February 2015, the true cost of managing tier 1 storage at $25/Gb
per year. This includes the cost of raw storage; as well as the additional costs of
performance tiers, floor space, power/cooling, and the cost of backup and disaster
recovery, etc.
2. Discovery/FOI Savings
Agreed ‘trusted sources’ of digital records can be established,
minimising ephemeral information and making the task of locating the
correct, trusted record much easier and faster.
The identification of records across these information repositories will facilitate faster and
more targeted responses to discovery requests. This cost can be quantified, calculated on
less information to search and review, faster and better search mechanisms, faster
retrieval and access to information, as well as speeding up review processes through
automatic categorisation and reduced time to assemble a responsive collection.
Discovery, including FOI searches, is dependent on the collection of all potentially
responsive content, no matter where it is stored, so that it can be reviewed for privilege
and relevancy before being turned over to the opposing counsel.
For most organizations, the document review process is the costliest and most time-
consuming part of discovery, which makes it extremely important to avoid over-collecting
data. Over collection is usually a result of ineffective or non-existent information
management processes. Because data can be scattered across the enterprise with little or
no indexing or management, discovery collection teams will grab everything they can find
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 14 of 18
with the expectation that they will filter it later for relevance. Universally, the “data grab”
technique forces more content to be manually reviewed, dramatically driving up the
overall cost of discovery.
Using figures identified and referenced to industry sources in the Osterman Research
white paper6, it is assumed that:
an initial collection of 3.5Gb of data per custodian, 23 custodians assumed,
totalling 80.5 GB total
this is later culled down to 46.7 GB using additional search and filtering
techniques
46.7 GB totals 560,280 documents (assuming 12k documents per GB), and is
assumed to be reviewed manually by legal professionals for privilege and
confidentiality
utilizing legal industry standard of a manual review rate of 50 pages per hour at
$60 per hour, it is estimated that the total number of manual review hours is
11,205
multiply total review hours by the hourly review rate, and a total discovery review
cost of $0.672 million for a single discovery event is calculated
multiply by the average number of discoveries per year (conservatively assumed
to be three)
conclude with a total annual estimated discovery cost of $2.04 million.
The above figures are considered to be aggressive, so for this analysis it is assumed that
these figures will be slowly achieved over a period of five years, starting at 40% in Year 1,
and climbing to 80% in Year 5.
Non-quantifiable Benefits
Non-quantifiable benefits are of equal importance in cost-benefit
analysis, as they often include significant efficiencies and productivity
enhancements, as well as ensuring compliance and a platform for
further innovation.
1. Managing security and privacy information
Identifying and managing security and privacy related information, such as Tax File
Numbers, credit card details, personal information and passwords is a critical risk
management issue for any corporation and organisation, and each year this risk increases
6 Figures from the 2012 CGOC Study, Osterman Research White Paper, The True ROI of
Information Governance, published February 2015
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 15 of 18
importance as digital transformations ramp up. Not only does this issue cut to the heart of
privacy concerns for the public, but issues such as unauthorised or inappropriate storage
of passwords in emails and network directory files really open the organisations to major
security risks.
The cost of not managing these risks are not easy to quantify, but one password hacking
incident could result in serious or even extreme impacts. Additionally, the leak of personal
information, particularly TFNs or credit card numbers could result in a significant legal
event where costs could be very high.
2. End user productivity gains
Increases in productivity through faster search, retrieval and access to information.
Employees spend a measurable amount of time searching for old content for reuse and
reference. When they can’t find the data they need, they end up spending more time
recreating the data they couldn’t find. Using HPE ControlPoint will remove the ROT and
ensure that data can be found quickly, eliminating the need to recreate lost information.
3. Compliance and regulation risk avoidance
Compliance and regulation risk avoidance through stronger records management across
the enterprise. Risk avoidance is a technique of risk management that involves taking
steps to remove exposure of negative events, such as the cost of not being able to
respond quickly to key stakeholders (or produce records at all), or the cost of losing a
legal case due to insufficient or incomplete collection processes, or the inability to
demonstrate compliance to regulations. The risk could include significant embarrassment
or lost revenue due to negative publicity and reduced business. It could even include fines
imposed by a court or regulators, and payment of the opposing counsel’s costs.
Savings from compliance and regulation risk avoidance is a difficult variable to quantify.
For those organizations that have not directly experienced these kinds of issues, risk
avoidance calculations are somewhat meaningless, and therefore it is shown as a non-
quantifiable benefit.
Cost
The key cost for HPE ControlPoint is the licence and associated annual maintenance, which is
sold on the volume of information required to be indexed. In this case, the organisation is
assumed to have 1500 staff and have 25Tb of information in target repositories.
The licence price is not displayed in this document due to the commercial-in-confidence
nature of this information. However the price is rolled up into the implementation cost which
also includes the implementation services. The latter includes installation, configuration and
deployment of the HPE ControlPoint product.
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 16 of 18
Quantifiable Cost/Benefit Analysis
Based on an organisation of 1500 staff and around 25Tb of
information in target repositories, and using a conservative estimation,
the implementation of HPE ControlPoint produces a significantly
positive 5 year cost-benefit of $1.7M, a Net Present Value (NPV) of
$1.5M, and a benefit-cost ratio of 4.15.
Costs Year 1 Year 2 Year 3 Year 4 Year 5 Total
Software Licence, Installation and Support $331,146 $47,666 $47,666 $47,666 $47,666 $521,808
Total $331,146 $47,666 $47,666 $47,666 $47,666 $521,808
Savings Assumptions Storage saving as % of total storage 5% 10% 20% 10% 10% Discovery savings as a % of total achievable 40% 50% 60% 70% 80%
Savings Year 1 Year 2 Year 3 Year 4 Year 5 Total
Storage Savings (based on % identified above) $31,250 $62,500 $125,000 $62,500 $62,500 $343,750
Discovery Savings $259,200 $324,000 $388,800 $453,600 $518,400 $1,944,000
Total $290,450 $386,500 $513,800 $516,100 $580,900 $2,287,750
Cost less benefit $40,696 -$338,834 -$466,134 -$468,434 -$533,234 -$1,765,942
Key savings storage cost management reduction, and discovery/findability effort savings:
The solution will be implemented to discover and manage records of value in existing
files stores, email, and systems such as SharePoint and email. These records can be
either migrated into HPE RM/CM, or managed in place by applying policies to the
records. The remainder of the information can be defensibly deleted, giving rise to
significant storage savings.
Additionally, the identification of true records across these information repositories will
facilitate faster and more targeted responses to legal discovery requests. This cost
can be quantified, calculated on less information to search and review, faster and
better search mechanisms, faster retrieval and access to information, as well as
speeding up review processes through automatic categorisation and reduced time to
assemble a responsive collection.
HPE ControlPoint Cost/Benefit
The Business Case for HPE ControlPoint Page 17 of 18
Conclusion
These savings of $1.76M, which produces a Net Present Value of $1.5M (discounted at a
conservative 4%), combined with the significant non-quantifiable benefits of managing
security and privacy information, efficiencies and productivity enhancements, as well as
ensuring compliance and regulation risk avoidance provides the HPE ControlPoint solution with
a very strong cost/benefit assessment
Moreover, this solution establishes a platform for further innovation,
where other components can be added to the platform over time. This
includes components that provide the ability to integrate and link
controlled information and records to corporate applications, or archive
databases to the records management system, or provide a federated
search to end users. .
18
About iCognition
iCognition provides practical leadership, solutions and services for the management and
governance of enterprise information. Our vision is to be the trusted advisor of choice to our
clients for enterprise-wide information management and governance consultancy and solutions
implementation.
iCognition’s goal is to ensure enterprises maximise the value of their information, while
minimising cost and risk. We use an integrated Information Governance model that combines the
disciplines of data, records, and information management to value, manage, control and harness
information across the enterprise. This model applies a strategic design approach at the policy,
governance, systems and change management levels.
At the systems level we provide useful, usability, effective and satisfying information
management systems. We combine business and technical skills to deliver well designed and
considered solutions and cloud services using a combination of third-party products, integrated
systems, and value-added Commercial-Off-The-Shelf interfaces and solutions developed by
iCognition, called our Diem Solutions.