Aberdeen Group Advises Financial Services Industry to Increase Efficiency & Fortify Compliance Efforts With Data-Archiving Technology

Portland, Ore., January 13, 2009 - Smarsh®, a leading managed service provider of innovative, secure and reliable email archiving and compliance solutions, today shared the results of an Analyst Insight report from Aberdeen Group, titled “Archiving Practices in Financial Services.” The research indicates that there is a unique set of business pressures driving companies in the financial services industry to adopt data archiving technology, and in the current economic climate, an appropriate hosted solution can provide remedy for these issues.

According to Aberdeen’s data, increasing operational efficiency was a top factor in driving 44% of financial services companies towards implementing a data archiving solution, while 34% of the remaining pool of surveyed companies (across multiple industry segments) cited this rationale. Meanwhile, 33% of companies from the financial sector listed corporate governance (including regulatory compliance) as a top pressure, compared with 9% of all others.

“Between the economic downturn, the volatility of the markets and impending increases in regulation and oversight, this is a challenging time for the financial services industry. Companies are going to be forced to maintain compliance with federal and industry regulatory standards while functioning with fewer resources,” explained Jeffrey Hill, Aberdeen’s Senior Research Analyst, Data Management and Storage, and the primary author of the Insight. “Companies should use these challenging times as an opportunity to look into technology solutions that can help them produce and achieve more with less.”

The paper suggests that the benefits of a hosted (also known as software-as-a-service or “SaaS”) deployment model can help companies effectively address these challenges. According to the report, “Because of lower costs through human capital, fewer resources spent on IT development and implementation, and the ability to support the uniqueness of each organization’s business processes, a hosted solution offers cash-strapped financial services companies a way to become more fiscally responsible at a time when it is severely needed.”

Additional business pressures that resonated more with the financial sector included minimizing risk of data loss and minimizing litigation risk.

“We’ve learned that in order to provide peace of mind for our clients in the financial services industry, our service and solutions need to address all of the pressures documented in the Aberdeen report,” said Stephen Marsh, founder and CEO of Smarsh. “This is a sophisticated industry, and current environment aside, archiving needs are evolving. Litigation readiness and risk management are more mission-critical than ever. Protecting client data and communication, monitoring and documenting usage of corporate messaging systems… answering these challenges is no longer simply optional for long-term business well-being.”

To read the Aberdeen Group Analyst Insight Report “Archiving Practices in Financial Services,” click here.

About Smarsh Inc.

Smarsh® is a leading managed service provider of innovative, secure, and reliable email archiving solutions for message compliance and records retention, proactive litigation readiness and mail server data management. Founded in 2001, the company has built its trusted reputation by handling the sophisticated archiving needs of the financial services industry, and has produced a flawless regulatory audit track record to show for it. Customizable solutions fit the needs, budgets and technological infrastructure of any organization – big or small – and are matched with unrivaled customer support and service.

Smarsh’s growth has been recognized at both the local and national level. In 2008, the company was named to the “Inc. 500”, Inc. magazine’s annual analysis of the fastest-growing companies in the United States, while The Portland Business Journal ranked Smarsh second overall in its growth rankings for the state of Oregon.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to AberdeenTM for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the “customer optimization” process of Harte-Hanks (Information – Opportunity – Insight – Engagement – Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market.

For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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