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Subject: Re: "Paperless" - Preserving Media as a RM - How to impress IT an d the CEO
From: "Jones, Virginia" <[log in to unmask]>
Reply-To:Records Management Program <[log in to unmask]>
Date:Tue, 7 Oct 2003 16:39:33 -0400

text/plain (158 lines)

I believe you are discussing electronic media storage rather than paper
storage?  If so, some of the evergreen and hostage fee definitions are still
valid, but they may be applied differently.  For instance, our current paper
record storage firm also has a media storage division.  While we are
currently in the process of changing paper record storage providers (and
stifling attempts at hostage fee charges), we found their bid for media
storage to have different options.  Some of the differences - the paper
storage contract charges one month in advance for actual boxes stored, the
media storage contract charges one quarter in advance for either a minimum
volume stored or actual media stored, whichever is the largest volume.  The
other differences we found was that the media storage contract included
various small charges for each time a tape or CD was handled - including
loading into carrying case, removing from carrying case, placing on storage
rack, removing from storage rack, etc.  It also included a handling charge
for each carrying case.  The media storage bid also included a monthly
"administrative" fee - sort of a minimum charge - that the paper contract
did not.

Ginny Jones
(Virginia A. Jones, CRM)
Records Manager
Information Technology Division
Newport News Dept. of Public Utilities
Newport News, VA
[log in to unmask]

> -----Original Message-----
> From: eton SINGLETON [mailto:[log in to unmask]]
> Sent: Tuesday, October 07, 2003 2:05 PM
> To: [log in to unmask]
> Subject: Re: "Paperless" - Preserving Media as a RM - How to
> impress IT
> and the CEO
> I'm new to this listserv environment and have been watching
> the posts for
> the past week now and have seen a few comments mentioning
> situations with
> storage vendors and am interested in finding out more.  My
> name is Rich
> Singleton, and I'm based outside of Atlanta a=nd I'm happy to
> meet you all
> <shake>.
> I've recently moved into Records Management from the IT
> environment and am
> working on a pilot electronic records management program for
> our financial
> services organization.  It will involve both records created
> at the desktop
> level, received from the outside and our media repository
> where we store
> backups from our servers.
> My current interest is storage and more specifically,
> off-site providers.
> We are investigating the use of some third party services to store and
> manage media for us (present contracts are expiring and we're
> outgrowing our
> own space) and we want to try and keep from storing all of
> our eggs in one
> basket, so to speak.
> Some of the quotes we're getting are offering things like
> "first year free"
> and "free move-in" along with incentives if we store all of
> our media with
> one firm, even if it's in different locations.  Naturally,
> there has to be
> some catch with this, but I'm not at a point yet where I've
> been able to
> figure out just what it is.
> I've seen mention here of "hostage" fees and something called
> "evergreen
> clauses" and I'm not familiar with these terms.  When I asked
> one of the
> vendors about them, they sort of stared blankly at me and
> didn't have an
> answer for me about them.
> I noticed this comment in the message from Hugh Smith and was
> wondering if
> anyone could fill in the blanks on what this is about?
> >international players will soon be trying to raise rates, lock in
> >longer terms and add "Evergreen Clauses" to prevent movement
> from bulk
> >warehouse type conditions to companies who offer secure
> media storage. I
> >have heard from a number of RM's that notices of large price
> >increases are already on their desks.
> I was a bit confused about the comment regarding price
> increases, as when
> you have a contract, doesn't that lock in your price for the
> term of the
> contract and then you renegotiate rates at the end of the
> term, and if you
> don't agree with the rate, you simply find another vendor?
> Also, there was this comment in the message that I wasn't too
> clear on-
> >Evergreen Clauses, Average Minimum Storage Volumes, Split
> Fees all work to
> >make Media Storage Contracts incomprehensible! These efforts
> to do to the
> >media storage industry what "Hostage Fees" did to paper
> storage need to be
> >discussed with your executives.
> >Attempts to lock in clients into inflexible contracts so
> media cannot move
> >to better security, better environmental control and better
> >service open the door for price increases without improved service or
> >quality.
> I'm not familiar with the terms so, I guess they're already
> incomprehensible
> for me =).  Our present vendor is in the process of improving their
> environmental controls and has informed us there is likely
> going to be an
> increase in storage costs to have our media included in this improved
> storage environment. We've had a contract with them for a
> number of years
> and as new contracts were negotiated, the rate increases were
> "reasonable".
> What do I need to be concerned about when I'm trying to
> negotiate so I don't
> get locked into inflexible contracts or subjected to hostage fees?
> I would appreciate any input from those of you who have
> experience in this
> area, as it seems there are a lot of things I need to learn.
> I'm sure I'll
> have more questions as this process moves forward and I look
> forward to
> whatever help anyone could provide me.
> Thank you
> Rich Singleton
> [log in to unmask]
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