A Corporate Chaperon For Instant Messaging

by Marvin Pyles

Although it isn't as widespread as email, corporate instant messaging (IM) usage is real. "Right now, IM is present in about 90 percent of corporations," says Michael Osterman, principal analyst for Black Diamond, WA-based Osterman Research. What is most alarming, adds Osterman is that "most IM use is outside the view of IT management."

Accordingly, corporations must now bring instant messages under control just like any other type of company content. Organizations have generally chosen one of three solutions: secure private enterprise IM clients, managed use of public clients through a network gateway or outright blockage of all IM usage.

"Even though the initial reaction of many IT managers was to block instant messaging, eventually they realized that employees were doing more than talking back and forth with friends and family," says Dmitry Shapiro of Akonix. "They discovered that employees were dependent on IM because they used it to communicate amongst each other and with customers."

For those choosing the private IM approach, IBM has led the trend to bring the IM infrastructure in-house with its Lotus Sametime application. Microsoft, meanwhile, has had greater success with its consumer-oriented IM offerings. Those taking the gateway approach include Akonix, IMlogic, AXS-One and Facetime. AOL and Yahoo, have also turned some of their attention to getting into the enterprise market.

IM is drawing particular attention in the financial services industry, which was put on notice by the Securities and Exchange Commission's rule 17a-4 and NASD's Conduct Rule 3010. Both briefs require certain control parameters in regard to the archival, supervision and communication of information among broker/dealer organizations. And in March, the New York Stock Exchange published a memo stating that Rule 440, which deems that all business communication must be archived for a specific amount of time, also applies to instant messages.

Among the many financial firms now tackling IM management is Craig-Hallum Capital Group, a small, 38-employee outfit based in Minneapolis.

"Pretty much everyone here is using IM," acknowledges Mike Liker, the firm's CTO.

Synopsis

Vendor: Akonix Systems, San Diego, CA
www.akonix.com

Product: Akonix L7 Enterprise

Description: Instant messaging (IM) gateway installed behind corporate firewall to record/archive, monitor and report on all IM activities within an enterprise. Maps internal IM user IDs to the corporate directory using LDAP, Active Directory and other network directories.

Strengths: Records/archives IM sessions to help meet emerging compliance demands. Works with the four most popular public IM networks/ clients: AOL, Yahoo, MSN and ICQ. Offers custom and out-of-the-box reports for a range of enforcement options. Keeps internal IM sessions behind the firewall and off public networks.

Weaknesses: Reporting and recording provisions raise possible privacy concerns; be sure to establish and communicate clear policies before implementing invasive surveillance measures.

Price: Starts at $5,000 for up to 50 users (or $2,250 per year on a subscription basis).

"I would say 75 percent of messages are to clients — portfolio managers and fund managers — and the rest are to employees' family and friends."

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