Is Your Firm in the Clouds? Technology Based Workflows

1. Is Your Firm in the Clouds? Technology Based Workflows Association of Legal Administrators Annual Conference & Exposition May 25, 2011 Orlando, FL

2. 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

3. 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.

4. 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

5. What Can You Do with Cloud Computing?

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Benefits of Cloud Computing

14. 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

15. 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

16. 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

17. Pitfalls of Cloud Computing

18. 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

19. 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?

20. Public vs. Private Clouds

21. 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

22. 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

23. Virtualization

24. 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

25. 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

26. 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

27. Virtual Law Firms

28. 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

29. 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

30. 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

31. 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

32. 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

33. Legal Specific Cloud Applications

34. 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

35. 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

36. Considerations for Attorneys

37. 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?

38. 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?

39. 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

40. Jeffrey S. KrauseKrause Practice Management, LLC5002 Mesa CourtWaterford, WI 53185262-806-7218jeff@krausepm.comhttp://www.krausepm.comhttp://www.krausepm.com/blogA proud Founding Member of Lawtopia, LLC