Is Your Firm in the Clouds? Technology Based Workflows

Association of Legal Administrators Annual Conference & Exposition

May 25, 2011Orlando, FL

Cloud ComputingAn Introduction for Law Firms

• Cloud computing is one of the most talked about technology topics

• Different people have different definitions and there are many misconceptions about cloud computing

• Business owners, especially lawyers, have many questions and concerns about cloud computing

Cloud Computing Defined

• Delivery of shared, scalable, hosted technology services over the Internet

• Services that were previously performed at the workstation/server level are now being provided on a distant “host” computer

• The service that is provided could be just about anything that was previously provided at the workstation/server level.

Why Is It Called the Cloud?

• The name seems to fit perfectly but no one person decided to call it the cloud

• The explanation is much simpler• For years, the cloud symbol was used in

diagrams and flowcharts to represent a phone network and later computer network

• A cloud symbol seemed perfectly representative of the new technology

What Can You Do with Cloud Computing?

Storage

• Perhaps the simplest form of cloud computing• Store data at a hosted location• Benefits include less money spent on local

infrastructure and support• Possible drawbacks include security and data

availability• Examples are the many online backup services

Databases

• Enter and share data as if it was stored locally• Data can be accessed from anywhere• Benefits include less money spent on local

infrastructure, software, maintenance and support

• Drawbacks are security and data availability• Cloud based databases include applications

like Clio, a practice management tool

Information Services

• Information stored online that is searchable and retrievable from anywhere

• Lawyers should easily relate to this one because they have used Lexis and Westlaw online for years

• Benefits are the money saved on libraries and local resources

• Potential drawback is data availability

Applications

• Just about any application that can be run locally can be run in the cloud

• Google Docs and Gmail are examples of applications that were previously run locally but are now run in the cloud

• Benefit is the savings on software and maintenance

• Drawbacks include data availability

Platforms, Integrations and Testing

• This is an important aspect of cloud computing that only developers, consultants and IT staff seem to appreciate

• We can use the cloud to deploy and test solutions before we deploy them to your network

• Benefits include time and money savings

Security

• Anti-virus, threat detection and other security functions can be handled in the cloud

• Emails can be filtered at a host site and infected or suspicious emails can be quarantined before they ever reach your computer

• Benefits include cost savings and peace of mind• Possible drawbacks are data availability and

security

Infrastructure

• Some day you may work in an office without “computers”

• A keyboard and monitor may someday be all you need to connect to the Internet and do all of the things you currently do at your workstations

• The potential to save money is huge but you are really at the mercy of your infrastructure and Internet providers

Benefits of Cloud Computing

Cost of Hardware

• In the world of technology everything costs money – servers, workstations, software, databases, etc.

• Cloud computing allows you to spend less money on these items, especially hardware

• Online backup means you are spending less on storage

• Online databases mean you might not have to deploy another SQL Server in the office

Easy Expansion

• Today when you add an employee, you have to purchase a new workstation for them, purchase additional software licenses, etc.

• In the cloud, you just tell your provider you have a new employee and within minutes your new employee can use the same services that everyone else does

• Your next bill just goes up accordingly

Fewer IT Staff

• Today’s law firms run on computer technology• Solo attorneys and smaller firms use local

network providers• Larger firms have in-house dedicated personnel

and IT directors• In the cloud, the hosting provider maintains the

applications it is responsible for• There is the potential to save quite a bit of

money here, especially for larger firms

Pitfalls of Cloud Computing

Security

• If your data is in the cloud, you no longer have direct control over it

• Cloud technology providers will work very hard to keep things secure as their reputations are at stake

• There is still a security risk• After all, a technology provider with thousands

of customers (with thousands of clients each) is a tempting target

Data Availability

• Currently you may be dependent on a network of computers with a server

• If one workstation goes down you can swap in another or if a server goes down you can get someone there to repair it right away

• In the cloud, if the provider is down or your Internet connection is down – you are down

• What if the provider goes out of business suddenly?

Public vs. Private Clouds

Public Cloud

• A public cloud is one in which a service provider implements an Internet-based solution

• The service provider does not really care who the customer is

• The customer can purchase of the delivered solution but has little control over it

• Think online backup

Private Cloud

• In a private cloud the customer has much more control over the solution

• “Control” might mean extensive customization or the ability to choose applications

• The end user may even invest in and create the entire solution then deploy it so that its end users access it like any other Internet-based cloud solution

Virtualization

What is Virtualization

• Many people use the terms cloud computing and virtualization interchangeably

• Virtualization is a way to divide the resources of a single computer

• A single computer might host several desktops• Virtualization has been around a long time• The idea of cloud computing grew out of

virtualization

Thin Client Technology

• Virtualization relies on thin client technology• A thin client relies on another computer to

process its data• Mouse and keyboard input are sent to the

host• Data is processed on the host• Screens are sent back to remote• Can support very complex applications

Virtualization

• Virtualization is not cloud computing although it may be a way to implement cloud computing

• Same benefits apply• Added benefit is the way individual “desktops”

can be customized• Deploy an entire network on single powerful

computer• Deploy the computer to the Internet and you

have created your own cloud or a virtual office

Virtual Law Firms

Virtual Law Firms

• Technology backbone of the firm is accessed primarily over the Internet

• The lack of an office does not define a virtual law office

• Many virtual firms have an office• What makes them virtual is how the firm gets

its work done and how it interacts with its clients

How They Work

• Lawyers and staff do not typically work in the same location as their colleagues

• They might work in a remote office, at home or at the local coffee shop

• It is not about “where” they work but “how” they work

• Everything they need is available over the Internet and can be accessed with any device that is connected to the Internet

Virtual Office Technology

• A solo or small firm might do everything in the public cloud

• While many public cloud technologies scale, as a virtual firm grows it often wants more control over their systems and data

• Larger firms move to more powerful cloud solutions or create their own cloud through virtualization

Virtual Office Advantages

• Cost savings in many areas including rent, utilities and other overhead and sometimes, but not always, on technology

• Adaptable to client needs because lawyers can work anytime and anywhere

• Flexible work environment for lawyers and staff

Virtual Office Disadvantages

• Completely dependent on technology• If Internet is down, it is really hard or

impossible to get work done• In some firms, there is little personal

interaction• Some clients prefer traditional model• Some practice areas are not suitable

Legal Specific Cloud Applications

NetDocuments

• Cloud based document management• Works like many other document

management systems but the documents are stored in the cloud

• Very scalable• Starts around $20 per month per user

Case Management Systems

• The most popular area of legal specific cloud applications

• There are a number of offerings in this area• Clio, Rocket Matter, Houdini Esq, LexisNexis

Firm Manager are just a few• AdvologixPM is based on Saleslogix CRM

Considerations for Attorneys

Confidentiality

• As a law firm, you have a responsibility to protect client information

• Does storing data in the cloud fulfill this obligation• Make sure you diligently examine the policies and

procedures of the provider• A specific agreement between your firm and the

provider is even better• Do you have a duty to tell your client their data is

in the cloud or give them the ability to opt-out?

Discovery Implications

• In general, pre-trial discovery can be made of documents in the possession, custody or control of a party

• In the cloud, who has possession, custody and control?

• Does your client still have control?• Is the provider now a custodian?

A Few Final Thoughts on Cloud Computing

• When I hear about cloud computing, I cannot help but think of the dot.com bubble in the late nineties

• Everyone was starting an Internet company because it was a sure way to make money

• Most failed but the Internet did not• Similarly, in my opinion, cloud computing is here to

stay but the provider landscape may drastically change over the next few years

• Choose your provider wisely

Jeffrey S. Krause

Krause Practice Management, LLC5002 Mesa Court

Waterford, WI 53185262-806-7218

jeff@krausepm.comhttp://www.krausepm.com

http://www.krausepm.com/blogA proud Founding Member of Lawtopia, LLC