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The Real Cost of Compliance: Page 3 of 4

Where's it all going? When executives stop trembling, they might want to take a closer look at just what the compliance products they're hastening to buy will actually deliver. It's one thing to save everything, and even to index it in an orderly fashion so it can be retrieved easily. It's another to avoid the audits that make retrieval necessary. And that's a skill set that doesn't come in hardware and software, but in human form.

“Compliance is not about storage – it’s about how you manage it,” says Bob Schultz, network storage VP for Hewlett-Packard Co. (NYSE: HPQ), whose company bought archiving startup Persist Technologies last November (see HP Buys Archive Guys). “You don’t just say, ‘My Persist is connected to the network, my emails are going there, I’m compliant.’ ”

One needs to know what folk are sending via email, and why. In many cases of corporate greed or corruption revealed in recent years, email was the smoking gun. Those pulling the trigger were execs who chose to take destructive aim at their employees, clients, business partners, and shareholders.

Bottom line? Investing in a ton of compliance-ensuring products won't protect a company from its own employees.

There's something else. Compliance is expensive, and not just in terms of products. People must be hired to manage the complicated tasks of overseeing all the new gear. In an organization where trust is an issue, more products – and more personnel – will be required.