The Securities and Exchange Commission awarded a $50 million pilot contract for an electronic discovery program as the commission explores options for an enterprise cloud.

The SEC, which regulates securities and protects investors, awarded the pilot to Casepoint, a cloud-based technology company. Casepoint will create a storage platform for data the SEC collects related to its regulatory work.

According to the SEC’s statement of work, it receives about 3,500 new files each month, totaling 6-7 terabytes of data each month. After processing, that reaches 10 terabytes per month.

Through the pilot, the SEC seeks to reduce the cost of managing and maintaining these services itself. It also wants to improve access to its analytics tools, the statement of work said.

“We understand the magnitude of the demands on the SEC," said Amy Hilbert, VP of Public Sector at Casepoint. "Our technology has been carefully built over many years to meet or exceed the agency’s needs through our scalable platform, artificial intelligence and advanced analytics.”

There is one pedabyte of data on the SEC’s current system. The new system must support around 1,800 users across SEC headquarters and regional offices.

The SEC explored cloud solutions in fiscal year 2018, but decided that available options didn’t meet its needs at the time. The pilot has a one-year base period and four one-year options. The pilot could lead to an SEC enterprise cloud.

“If the pilot deployment is successful, the SEC may choose to expand the project to become an SEC enterprise system,” the SEC wrote in the contract’s eDiscovery statement of work.