USING CLOUD COMPUTING TO BETTER SERVE YOUR CLIENTS

Transcription

1 USING CLOUD COMPUTING TO BETTER SERVE YOUR CLIENTS A publication of

2 USING CLOUD COMPUTING TO BETTER SERVE YOUR CLIENTS TABLE OF CONTENTS Overview of Paper 3 How Cloud Computing can Benefit You 4 What Does Cloud Mean for a Law Firm? 6 A Practical Example 6 Other Strategic Advantages to Cloud Computing with Regard to Online Legal Services 7 Disadvantages When it Comes to Cloud Computing 8 Cloud Based Products for the Legal Industry 9 Time, Billing and Invoicing 9 Electronic Signatures 10 Case and Client Management 11 Document Management 12 Virtual Law Office Services 13 Project Management 14 Online Document Storage and Backup 15 Remote Access 16 Encrypted and Document Exchange 17 Choosing a Cloud Vendor 18 A publication of

3 OVERVIEW OF PAPER This presentation will discuss the technology itself, how to decide on which vendor to use, the terms and conditions for using the solutions as they pertain to safeguarding client privileged information and how cloud computing will help you better manage your practice. This webinar will explain what cloud computing is, guidance on what to look for when considering or evaluating cloud solutions, the trends happening in the legal industry, the way cloud solutions are changing the practice of law, and how local and national bars are reacting. Cloud computing is a general term for anything that involves delivering hosted services over the Internet. This technology is not new. If you have so much as Yahoo or Gmail account, then you have dealt with this technology before. Cloud computing, however, offers more advantages that many people are not aware of.

4 HOW CLOUD COMPUTING CAN BENEFIT YOU Here a number of ways that cloud computing can benefit you: REDUCED COSTS Cloud computing reduces your hardware (computers, software all those downloaded programs), networking management and overall IT expenses. In addition, with cloud computing, you pay for what you use. SaaS AUTOMATIC UPDATES There is no need for IT to worry about paying for your future updates in terms of software and hardware. SCALABILITY You can scale your business storage needs seamlessly rather than having to go out and purchase expensive programs or hardware. A not-for-profit ran a cookbook project and was able to pay for all the cloud apps they needed to create, implement and market their project on a month-to-month basis. They didn t have to purchase a piece of hardware, buy software licenses or worry about overloading their servers. HQ DISASTER RELIEF With your company s data safely stored on secure data centers instead of your server room (previously known as your storage closet), losing power due to hurricanes, earthquakes or a construction worker cutting the power lines, you are back at work as long as you have an internet connection. REMOTE ACCESS Employees, partners and clients can access, and update information wherever they are, rather than having to run back the office.

5 username password $ $$ $$$ EASE OF IMPLEMENTATION Your IT team (hopefully older than a 10 year old) may not like this, but implementing cloud services is as easy as, well, setting up a LinkedIn page. SKILLED VENDORS Who would you rather manages and protects your data? A company such as InfoStreet (with over 16 years experience serving enterprise clients), IBM, Amazon or your IT staff? HQ HQ 00s. 00s. HQ HQ RESPONSE TIME Cloud computing accomplishes a better response time in most cases than your standard server and hardware. EVEN PLAYING FIELD FOR SMALL FIRMS This allows small companies to complete more effectively with some of the larger businesses, balancing the playing field. Your small business can utilize the same tools that Fortune 100 companies use and can do this because with cloud computing, your business will only pay for what you need (see #1). CUSTOMIZATION Cloud apps allow your business to select what your company needs, when you need it and use it how you want to. You can select an intranet as your platform, and CRM from InfoStreet, marketing tools from Topica, financial services from yet another vendor... you use and pay for only what you need.

6 WHAT DOES CLOUD MEAN FOR A LAW FIRM? Now, what does this mean for a law firm? It s simple. Law firms can now store client data, financial records, legal documents, and other information on the Internet, rather than house data in servers located on their premises, often at a cost, which is much less than the cost of storing data internally. This allows clients to have increased access to legal services and enables solos and small law firms to become more competitive. A PRACTICAL EXAMPLE Let s look at a practical example: a law firm that wants to offer unbundled legal services (just the services a client wants at a fixed fee) online at a reduced fee can only do so by creating an online client portal that enables a client to purchase legal services over the Internet. Because of the nature of this web architecture, this client portal exists on the Web and data is stored externally and not within the law firm. The client portal provides a secure personalized legal space within which the client can consume legal services. It is mostly solos and small law firms that provide legal services to solve the legal problems of individuals and small business. Large law firms may have the resources to create portals for their corporate clients, and to store data on servers located within the firm, but solos and small law firm do not. In order to deliver online legal services, the law firm has to create a secure client portal which the client can access with a user name and password. Within this secure client portal, online legal services are delivered, such as online document assembly, clients can pay their legal bills, and the clients legal documents can be stored online. All of these activities involve the storage of the client s confidential information online. Because this online legal technology is capital intensive to develop, very few solos and small law firms have developed any virtual law firm technology on their own. Instead, they have looked to a type of cloud computing known as SaaS. SaaS stands for Software as a Service. software that is delivered over the Internet through the web browser. This means that the solo and small law firms are able, for a relatively inexpensive monthly fee, to subscribe to a set of complicated software technologies that are provided over the Internet from a vendor who hosts both the software application and the firm s data on a server that is not within the firm s physical facility. It is only in this way that these software applications can be delivered to solos and small law firms economically and at a price they can afford.

7 OTHER STRATEGIC ADVANTAGES TO CLOUD COMPUTING WITH REGARD TO ONLINE LEGAL SERVICES This form of cloud computing also provides law firms with many other strategic advantages with regard to online legal services: Realistically, this is the only way that complex software applications can be delivered to solos and small law firms economically and at a price they can afford. Complicated software applications, normally beyond the capability of a small law firm to develop or use, can be made available to a class of law firms where it would be cost prohibitive if each law firm has to develop the application by itself. This software, such as web-enabled document automation, enables the law firm to increase its productivity, increase its margins, and keep prices low and reasonable. Law firms can more effectively compete against non-law firm legal service providers such as LegalZoom, which use the same cloud technology to compete against lawyers. Non-lawyer legal services like LegalZoom have been eating away at the market share of solos and small law firms for years using the same internet-based technology that lawyers fear might compromise the security and integrity of a law firm s operations. Our research shows that a younger generation of clients want to do business with lawyers over the Internet. If solos and small law firms don t respond to this demographic on their terms, they will forever lose this client basis to alternative providers. Software applications that are offered as a software as a service, require that no hardware or software be installed and updates can be made in days rather than months. New features can be rolled out to all of the law firms who subscriber very quickly without waiting for annual releases. There is no in-house software installation. The attorney has access to data anywhere securely accessing the Internet. In our evolving economy, where there are incentives to go green, it is not possible to implement a go green strategy without storing data in the cloud. Virtual law firms, wireless platforms, virtual law offices, lawyers visiting clients in their homes or places of business, all require a cloudbased data strategy.

8 DISADVANTAGES WHEN IT COMES TO CLOUD COMPUTING It is important to remember that technology is not perfect. There are potential disadvantages when it comes to cloud computing. These disadvantages include: POSSIBLE DOWNTIME Cloud computing makes your small business dependent on the reliability of your Internet connection. When it s offline, you re offline. One should remember that even the most reliable cloud computing service providers suffer server outages now and again. SECURITY ISSUES Before adopting this technology, you should know that you will be surrendering all your company s sensitive information to a thirdparty cloud service provider. This could potentially put your company to great risk. Hence, you need to make absolutely sure that you choose the most reliable service provider, who will keep your information totally secure. The latter seems to be the main concern among people, including the American Bar Association. It appears to be a question of whether a lawyer who uses SaaS technology is complying with ethical obligations. However, many court opinions have indicated that use of the technology is permitted, only requiring that certain requirements be met. In conclusion, SaaS levels the playing field between solos and small law firm with large firms and the LegalZooms of the world, enabling them to remain competitive in a changing legal landscape. The market for consumer legal solutions is changing in fundamental ways, primarily because of the ascendancy of the Internet. SaaS offered in the Cloud is a major step towards innovation in the delivery of legal services in terms of increasing law firm productivity enabling law firms to serve a broader group of consumers at prices that are affordable. It is important to remember, however, that there are risks to storing valuable information on the internet, and these risks are still present when it comes to SaaS technology.

9 CLOUD BASED PRODUCTS FOR THE LEGAL INDUSTRY Now that we know how cloud computing works, let s take a look at some other ways it can help you or your firm specifically. Here is a list of issues that lawyers consider every day in running their law practice. Also listed are many SaaS products designed specifically to help lawyers better manage these issues: TIME, BILLING AND INVOICING These products use cloud computing to help streamline the billing function, so the lawyer operating on a billable-hour basis is not spending a significant amount of time logging work for each client. The collections process is tied into the time and billing component of these tools, with most of them also offering a web-based invoicing system. BILL4TIME ( provides time and expense tracking, billing services at both hourly and flat fee rates, invoicing, trust accounting, and integration with QuickBooks. For one user and three clients, the service is free; most lawyers will want to go for the Lite ($15.99 per month) or Professional ($29.99 per month) editions, which offer many more features. CHROMETA (app.chrometa.com) automatically captures and categorizes your time. There are three pricing tiers. Basic includes two months of data for two devices for $19 per month, Basic Plus includes one year of data for three devices for $29 per month, and Premium includes unlimited data for four devices for $49 per month.

10 ELECTRONIC SIGNATURES Electronic signatures save time for both the lawyer and his or her clients. These products provide secure, web-based electronic signatures and in some cases will store signed documents online for access by both parties. Features typically include common file format support, biometric and webcam photo authentication and document archiving. RIGHTSIGNATURE ( provides 256-bit SSL encryption and Amazon Web Services to ensure privacy of data. Pricing starts at $14 per month for unlimited documents, a premium feature set, one reusable template and one sender. Small group pricing is $49 per month for unlimited documents, a premium feature set, 10 reusable templates, five senders and branded and logo. DOCUSIGN ( is an electronic signature service that offers mobile device signing options (for iphone and ipad), custom storage folder structures, collaboration with third parties to add and edit documents, user and group management, workflows and templates, transaction control and firm-branded envelopes. You can try DocuSign for free, and plans are available at $19.99 and $24.99 per month.

11 CASE AND CLIENT MANAGEMENT Case and client management has become one of the most popular cloud offerings due to its broad use for all different forms of law practice, from solos to larger law firms. These products provide features such as document storage, calendaring and searchable client file organization, which the law firm can access from anywhere. One appealing feature of these tools is the ability to organize all of the firm s client and case matters into a single web-based system that can be more easily searched and accessible than traditional paper filing systems. ADVOLOGIX PM ( includes group calendaring, docket and activity management, client management and marketing, project and matter management, time and billing, document management, account management, mobile access workflow, customization and integration features. It costs $90 per month per user, and $75 per month for each additional user up to 5 users. LAWRD ( provides a practice management system with features including management reports, time tracking, matter management, contact management, a billing sheets generator and more. A 30-day free trial is available. After that, it costs $19 per month per user. CLIO ( offers a dashboard where you can see your upcoming tasks and schedule at a glance. Users can monitor billing targets, link tasks to specific matters, bill time directly from tasks, and run billing, productivity and client reports. It includes a client connect feature for sharing documents with clients online as well as online invoicing and bill payment. There is a 30-day free trial and attorney users pay $49 per month after the trial period. ROCKET MATTER ( is a web-based time and practice management product that includes calendaring, expense, time and task tracking, invoicing, batch billing, matter-based ledgering, phone messaging, a time-tracking timer, Skype integration, mobile access, contact management, documents and notes, tagging, reports, conflict checking and more. You ll pay $59.99 per month for the first user, with a decreasing pricing model for each additional user.

12 DOCUMENT MANAGEMENT Online document management services allow you to access files and documents from any computer with an Internet connection, as well as share them with clients, team members and others. DROPBOX ( installs a simple folder on all of your computers; then just move your files into that folder, and they are nearly instantly synched to a cloud location. Dropbox offers 2GB of free storage, and then charges $10 per month for 50GB and $20 per month for 100GB of storage. Note: At press time, the authors cannot recommend Dropbox for storage of confidential documents, due to encryption issues. But it is the best online document manager for nonconfidential records. NETDOCUMENTS ( allows you to create your entire folder structure in the cloud. All your files are completely searchable online, and you can easily import from Outlook into your account. NetDocuments also provides a records management function to automate the retention periods of certain types of documents. There are three levels of pricing: Basic ($20 per user per month), Professional ($30 per user per month), and Professional+ ($38 per user per month). All start with 10GB base storage. BOX.NET ( like Dropbox, provides tools to manage users, security and permissions, for rolling documents out to a larger group of employees. It offers 5GB for free, and then $10 per month for 25GB and $20 per month for 50GB. Business and plans start at $15 per user per month for 500GB of space. WORLDOX ( best known for its standalone software product, now offers Complete Cloud, which provides the same Worldox document management service, but with no software to install or upgrade, or servers to purchase. Call for pricing information.

13 VIRTUAL LAW OFFICE SERVICES These services facilitate the online delivery of legal services and include the use of secure client portals to provide clients with the ability to work with their lawyer online. They combine web-based case and client management products with time, billing and document management and other law office management features, including form libraries, law libraries, calendaring, invoicing, document assembly and automation features, and online client intake procedures, among other features. DIRECTLAW ( provides a secure online client portal with a self-service interface, encrypted attorneyclient communications that are time and date stamped in threaded archives, plus calendaring and file storage with upload and download functions. It also includes a web-enabled document automation function and libraries of state-specific documents, legal invoicing and online credit card payment for legal fees. Introductory pricing is available for solo start-ups and new lawyers. Visit the website for pricing details on the DirectLaw Basic, DirectLaw PayGo and DirectLaw Complete services. TOTAL ATTORNEYS ( provides a secure client portal, online collaboration, document storage and sharing, case and client management tools, online invoicing and bill payment capability, calendaring, conflict of interest checks, jurisdiction checks, trust accounting compliance and data backups, among other features. Pricing for lawyers starts at $50 per month with other pricing based on the number of users.

14 PROJECT MANAGEMENT More and more, lawyers are recognizing that project management skills are important to the practice of law. After all, managing a case or a transaction is similar to managing a business project; there are specific tasks, milestones and resources to be assigned to each task. The following provide all of those features, as well as discussion forums, chat rooms and even wikis for collaboration. Some also include practice management tools such as time entry, billing and calendaring. BASECAMP ( is one of the pioneers of online project management. Basecamp has all the basic features message boards, file storage and collaboration, task lists and time tracking, and a number of project templates that can jumpstart your project initiation. Pricing is $49 per month for 35 projects and 15GB of storage space, $99 per month for 100 projects and 30GB of storage, or $149 per month for unlimited projects and 75GB of storage. PBWORKS ( offers project workspaces that are clean and easy to use. You can choose to be notified when any change to documents, pages or task status occurs. Call for pricing information. ONIT ( new to the legal project management scene, is designed for lawyers, firms and even corporate legal departments that have to manage multiple projects. The basic version is free. Corporate law departments can subscribe to the new Onit Premium for a monthly fee. Call for pricing information. ZOHO PROJECTS ( offers an interesting project management tool. The free version gives you one project, with 10MB of storage space. Check out the different value packs ($99, $199 and $699 a year, respectively) to see which option best fits your needs.

15 ONLINE DOCUMENT STORAGE AND BACKUP It should be noted that online backup and online document management are not the same thing; online backup is designed for business continuity and disaster recovery purposes, either as a primary backup or as a redundant backup for some other backup source. These services encrypt your data and typically back up incrementally, only backing up those files that are new or changed. MOZY ( one of the first online backup services, is still a strong choice. The company offers a Home version ($5.99 per month for 50GB, $9.99 per month for 125GB) and a Pro edition (per user pricing ranges from $3.95 +$.50 per GB per month) that provides network and server support for larger firms. The new Mozy 2xProtect will also create a local backup to an external drive, providing true redundant backup. CARBONITE ( is another popular choice for online backup. You can try it for 15 days for free without even giving a credit card. If you decide to purchase it, you pay a flat rate starting at $54.95 per year per computer with unlimited data storage.

16 REMOTE ACCESS Many of you no doubt already use a remote access tool to log in to your work computers. If so, then you are already using a cloud computing service. These applications make it simple for lawyers to have constant access to not only important work and client files, but also to software applications that may not be installed on a firm laptop or home computer. GOTOMYPC ( transfers documents between computers, prints to the computer you are working on or the one being accessed, allows for full displays of your computers if you have multiple monitors, and prevents others from viewing your computer s monitor while you are remotely connected. For one user, the price is $99 per year. The Pro version starts at $198 per year for two computers, and goes up from there. Corporate pricing is also available. LOGMEIN ( essentially offers the same features as GoToMyPC, but also allows you to access your computer via an iphone or ipad. A single-user version is always free and, while it is not as full-featured as the Pro edition, it provides good basic remote access. A Pro account starts at $69.95 per computer with discounts available as the number of computers increases. LEGAL WORKSPACE ( is designed specifically for the legal profession. It serves as an Internet-hosted IT environment and offers more than simple desktop sharing. Lawyers can access all of their software and services online, without having the software installed on local computers. It provides access to Amicus Attorney, Timeslips, QuickBooks, Worldox, Microsoft Office and Trend Micro antivirus tools. With these tools, you can essentially run your entire practice on the Internet. Call for pricing information.

17 ENCRYPTED AND DOCUMENT EXCHANGE These services offer secure messaging and document exchange, for when you need to ensure that communications with your clients or others are encrypted and safe from prying eyes. DIALAWG ( provides encrypted communications specifically for attorneys. Files and messages are sent over an encrypted SSL channel. All data is encrypted and stored in Dialawg s private network, and recipients can view the files or messages securely via the web, Outlook, an iphone or other device. The basic service is free, with messages costing $.20 per recipient. Bronze, Silver and Gold levels range from $3 to $48 per month. RPOST ( provides a registered service with encrypted delivery of and compliance with HIPAA, FSA and other privacy regulations. Services include registered , electronic signatures and encryption with document archiving. Pricing ranges from $79 per month for 100 units per month to $9,750 per month for 25,000 units per month. ZIXCORP ( will send an encrypted directly into a recipient s inbox as an HTML attachment within a plain-text . Users click on the attachment and enter a password, after which the message is decrypted in an Internet browser. Stored messages are encrypted. Call for pricing information.

18 CHOOSING A CLOUD VENDOR Well, now you know what cloud computing is, how it can help you, and who can offer it to you. The only question is: is cloud computing right for you or your law firm? Here are some factors one should consider when evaluating SaaS products, and some specific questions you should ask SaaS vendors before signing up. FUNCTIONALITY/USABILITY Does the vendor offer a free trial period or demo to test out the interface and functionality of the product? If you currently use equivalent traditional software, what features do you use most frequently and are they available in the SaaS product? How often are new features added? Are any major new features planned? How open is the vendor to user feedback about changes and new features? SERVICE AND SUPPORT What training options are available for users of this product? How many attorneys are currently using this product? What type of support is included with the purchase price/monthly subscription? Does the vendor offer (or would it be willing to negotiate) a Service Level Agreement (SLA) that guarantees a certain response time to customer service and/or technical support requests? AVAILABILITY/ACCESS How often do I need to access my legal software outside of the office? Is the SaaS compatible with my preferred platform/device/web browser? Do I work in an area that's prone to disaster or other business continuity threats?

19 Do I have reliable access to the Internet from work? From home? On the road? Does the provider offer (or would it be willing to negotiate) a Service Level Agreement (SLA) that guarantees a certain level of service (e.g. uptime, accessibility, etc.)? Are any relevant guarantees or disclaimers of liability included in the provider's Terms of Service (TOS)? ETHICS/SECURITY CONCERNS How does the vendor safeguard the privacy/confidentiality of stored data? How often is the user's data backed up? Does the vendor backup data in multiple data centers in different geographic locations to safeguard against natural disaster? What is the history of the vendor? Where do they derive their funding? How stable are they financially? Can I get my data "off" their servers for my own offline use/backup? If I decide to cancel my subscription to the software, will I get my data? Is data supplied in a non-proprietary format that is compatible with other software? Does the vendor's Terms of Service or Service Level Agreement address confidentiality and security? If not, would the vendor be willing to sign a confidentiality agreement in keeping with your professional responsibilities? COST What are the monthly costs for the SaaS option, and are discounted rates available for non-lawyer employees like paralegals, legal assistants, and law clerks? Does the vendor require a contractual agreement to maintain service for a certain amount of time (e.g. 12 months, 24 months)? How does the cost of the SaaS solution compare over a two or three year period to the cost of a comparable traditional software license? What's the pricing history of the SaaS solution? How often are monthly rates increased? Are there any incidental costs for the SaaS solution, like data backup or support?