Cloud technology represents a fundamental shift in the way that IT systems can be delivered and accessed. In short, cloud computing allows firms of all sizes to use IT systems, without the need to own, support and maintain them.
How can cloud help my legal practice?
Some of the business benefits that cloud computing can provide your firm include:
– Transparent and predictable monthly IT charges
– Fewer disruptions and costs associated with system outages and upgrades
– Flexible working and mobility
– Remote access for full-time, part-time and off-shore workers
– Faster and easier office relocations
The confusion of ‘cloud’
‘Cloud’ is a broad and often misused term. It is important to recognise that there is no such single place as ‘the cloud’. It must also be understood that ‘cloud‘-based systems are no more equal to each other than all ‘digital’ cameras, ‘smart’ phones or ‘petrol’ powered cars are of equal quality or performance.
There are and will continue to be a range of cloud-based systems that have varying degrees of performance, reliability and functionality. It is very important not to assume that different ‘cloud’-based systems share anything beyond a common delivery method.
Cloud computing has existed for a long time, well before the term ‘cloud’ was used. Early users of Hotmail accounts for example (initially known as HoTMaiL to reference HTML web code) were using ‘cloud’ prior to the term being adopted.
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“Firms that are not looking to change their current software applications can still start to benefit from cloud”.
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First steps
There are a number of excellent cloud-based legal software applications available. If your firm is looking to change one or more of your software applications, it is well worth considering some of the cloud-based applications on the market today. Importantly, it helps to know that you can run one or more cloud-based software applications in conjunction with your existing on-site systems. These cloud-based applications are often referred to as ‘Software as a Service‘ and allow you to realise some of the cost savings and benefits of cloud.
Firms that are not looking to change their current software applications can still start to benefit from cloud. Two options that avoid the need to discard any investment in your current software systems include:
Infrastructure as a Service (IaaS) – this removes the need to own, maintain and upgrade server hardware. This can also improve your system reliability and performance.
Managed Desktop / Applications (Workspace as a Service) – provides you with access to all of your current non cloud-based systems through the cloud. This type of offering can facilitate staff mobility and remove the need for you to own and maintain IT systems or server hardware.
Selecting the right approach
There are many types of cloud offerings (including Software as a Service, Desktop as a Service and Infrastructure as a Service), each designed to address a different need.
Like any successful IT project, to get the right outcome, it is important to firstly understand what you are trying to achieve. These are some of the things to consider:
What are your true IT costs today? This may include hardware, software licensing, maintenance, data links, desktops, laptops, IT support / engineering and upgrades for example.
Is your server hardware aging? When will it next need replacing? Do you have a plan to put in new software that might change your hardware needs?
Do you have staff that spend a portion of their time maintaining systems? Could their time be better spent dealing with firm operational matters, rather than resolving system issues? What is that time worth?
Are your systems costing you money in lost productivity? Is this due to speed and reliability or both? Can this be quantified?
Do your staff have the flexibility they need to work and service their clients? Could your firm benefit from greater mobility? Do you have plans to relocate or open new offices?
Are you confident that your current backup system is working? How long would it take to restore in the event of a system failure and do you test it?
Know what you are buying
Not all cloud providers are equal so there is a level of due diligence required to understand what each provider is really offering you.
Here are some of the questions you should ask at a minimum, to understand more about your cloud provider:
Where is my data stored? This is not just for data sovereignty and privacy concerns, but because geographical distance often introduces unwanted latency / lag. This latency can result in a poor experience for your staff, cause frustrations and result in lost productivity.
How is my data secured? How is the data secured? Both electronically and physically?
How do I extract my data if I choose to move my services to another provider? Is there a documented exit strategy and what are the costs involved?
How can you access your data if the provider becomes insolvent? Can your data be restored by another provider if necessary?
How long is my data kept for? Is you data retained as required for 7 years, is it stored for just 30 days, or is stored indefinitely?
What service level commitments exist? How do you ensure the performance of your service is not impacted by the load from other customers?
Risk management? Do you or your clients have specific privacy, disaster recovery or business continuity requirements? By leveraging enterprise-grade cloud systems, you could potentially reduce your IT risk profile, decrease your insurance premiums and allow you to pitch for work with larger clients.
Reference sites? Your peers are the ones to best judge how all the pieces of the entire solution come together to serve the intended purpose.
Summary
Cloud technology is no different to any other IT advancement, in that it provides new opportunities, but only if it can be applied and utilised correctly.
Smaller and boutique firms in particular, have so far been faster to adopt cloud-based systems. These smaller firms typically are able to identify immediate performance and functionality improvements, because they can begin to access the types of systems previously reserved for firms with large IT budgets and IT teams.
Large firms tend to adopt cloud-based systems at a slower pace. These firms are likely to have previously invested in expensive on-site systems and already employ the teams that are needed to maintain and support those systems.
Irrespective of size, embracing cloud technologies can provide firms with many real world cost savings and benefits. It is important not to let the perception of ‘cloud’, stop you from considering how your firm can start to benefit from cloud computing.
Please note: NextLegal is not a cloud provider, we assist firms in better leveraging technology to improve their efficiencies, increase profitability and add value to their clients.
About the Author
Steve Goldsmith Says :
Great article Steve with sound advice and some very salient points.
I think the last paragraph sums up a large percentage of the business world, not just the Legal sector. A lot of the software vendors are starting to realise that Software as a Service is an important delivery method that they should be offering, however an equally large amount have not gone down that path. So most Law Firms will still have to have servers and data
In my current position at ITOC and in previous positions in law and finance I have found that the projects generally stall at the point where someone decides to “conquer the world” with cloud. Whilst it is true that the best utilization of Cloud is to have (or find) a solution that is architected to make the best use of it (task or function based as a service) however there can be some real gains to be had in the “Infrastructure as a Service” arena as most Law Firms still have servers, databases,etc. You can jump into the cloud now by doing a complete (or partial) datacentre migration and get rid of the costs associated with maintaining hardware. Allocate storage at will and don’t pay for Dev, test or other “utility” machines if you turn them off when not in use.
Once you get into a Cloud environment you can then look at the various ways you can reengineer your own solutions or incorporate other cloud solutions to further improve efficiency.
Historically Law Firms were concerned about sovereignty of data and not storing data off shore. This is not such an issue lately as most of the big cloud players (Amazon, Google & Microsoft) now have Australian datacentres.
One last “gotcha” that you may want to keep an eye out for is if you sign up for a Software as a Service (let’s use SalesForce as an example) you need to read the terms and conditions carefully as whilst the data may be stored locally, you may find that the terms of use are governed by a different legal jurisdiction (SalesForce is Singapore) which may make any dispute hard to resolve.
Steven Tyndall Says :
Thank you for the comments Steve, I agree with each of your points.
In particular I agree that taking small steps toward cloud can prevent it from becoming too overwhelming to even begin.
Jason Mills Says :
Fantastic article Steve.
You make a great point that not all ‘cloud’ solutions are created equal. In this time where many offerings are coming to market, firms are often sold a solution full of promises that aren’t delivered. This is where the valuable advice of professionals, who have worked in law firms before and know the unique requirements, can make the difference of a successful project and one that ultimately fails.
We have noticed that in the last 12 months, even some larger firms are starting to tackle parts of the ‘cloud’ with specific application requirements. The adoption of NetDocuments as a cloud based document management system has been making serious progress in both large and small firms across Australia.
I think your point on data location is a good conversation to have, but not something that should prevent firms from looking at a solution, just because the data is located off shore. A number of solutions have acceleration in place to minimize latency and certainly comply with all Australian privacy legislation. One of the products that we partner with, Clio, is a fantastic, cost effective practice management system that performs very well even though the data is located in the US.
Steven Tyndall Says :
Thanks Jason. NetDocuments and Clio are both great examples of ‘Software as a Service’ that can help law firms to benefit from cloud computing.
David Goener Says :
Well said Steve, this is a great overview of the key aspects of a cloud solution that any leader of a professional services firm needs to understand.
As firms start to come to terms with a maturing industry, where price is under pressure and work volumes are flat at best, it is essential to look at ways to reduce fixed costs and where possible replace them with variable. Enabling staff to work remotely reduces the amount of office space required and creates the potential to tap into a variable workforce.
Any firm preparing to move to new premises must consider a hosted service for their IT systems, if only to reduce the amount of floor space they need.
Finally, with the storm season now with us, firms should know how long they will be without access to IT services and how much data may be lost if they lose power or are denied access to their premises. A cloud solution provides business continuity and mitigates many of the associated risks.
Steven Tyndall Says :
Thank you David. You have identified some very relevant and practical ways that cloud can assist law firm leaders in addressing a range of challenges.