Harnessing the Power of the Internet for Your Practice

Washington State Bar Association

December 14, 2010  last revision March 27, 2011

Arita B. Sims, Technology Consultant and President of A.B. Sims Consulting, Seattle

Cloud computing is an exciting new technology finding its way into law firms.  This article explores the potential this technology has for managing your practice.  Here I will define cloud computing and practice management, describe the benefits and challenges of managing your practice in the cloud, describe some popular cloud-based legal practice management products, and present some testimonials from your peers.

Some Definitions of Cloud Computing

Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like the electricity grid.  

-- Wikipedia

Cloud computing is simply a set of pooled computing resources and services delivered over the web. When you diagram the relationships between all the elements it resembles a cloud.

– IDX Media

Any service or software that you access via the web.  Cloud computing is a new name for SaaS (Software as a Service), ASP (Applications Service Provider) or Network Computing.  "You load your software into the cloud…"

 
– John Tredennick, President, Catalyst Systems

Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS).

--  TechTarget.com

This article is concerned with SaaS as it pertains to Cloud-based delivery of legal practice management solutions.

Traditional Network:

Benefits of Cloud Computing

Some claimed benefits of cloud computing are only one side of a coin.  For example for cloud-based practice management, "reliability" as a benefit assumes a good, fast internet connection. "Reliability" of the cloud becomes a concern for offices susceptible to internet access outages.  With that caveat, here are the benefits:

Reduces in-house software management

Instead of installing applications onto your own computer, they run on a shared data center. When you use any application that runs in the cloud, you just log in with your web browser and start using it. You don't have to install the software to each computer. Updates just happen.

This means you will save time getting up and running.  Whether there is a true savings in dollars, however, is a question your firm should evaluate.  Software management is just one of many considerations when evaluating the cost of cloud-based practice management.

Reduces in-house hardware management

Cloud applications require only an internet connection. So, they can be run from a variety of inexpensive desktop computers, laptops and, in some cases, hand-held devices. The Traditional Network diagram on above shows the hardware in your office to run desktop applications accessing shared data.  The Cloud diagram shows servers residing outside your office that provide the means for the Website Visitor to access the applications and data stored in the cloud (the Internet).

Sold on Demand

You pay as you go, purchasing as much as you need for as long as you need it.  Subscriptions to cloud-based applications are typically priced monthly; and some vendors allow you to pick extra functions for an additional monthly charge. This may mean a savings, especially short term, but as stated before, there are many factors to evaluate to determine whether a firm is saving money over time by subscribing to cloud-based practice management.

Takes advantage of technological advances on the Internet

As Internet access improves, so does the quality of your use of the cloud software.

Any Device, Anywhere

Generally speaking, you can connect to your software and data from any web-browsing device (PC's, Macs, handhelds), from any location where a connection is available.

Multiple Users Real-Time Access

As with server-based solutions, multiple users access the data in real-time.  Everyone has the latest changes; no synchronization required.

Reliability

The cloud model provides for redundancy; i.e. if a server has a problem, your data is still available because it has been stored on multiple servers in the cloud. This is not to say there can never be an outage in the cloud.  The technology (and interest of the cloud service provider) makes outages less likely when compared to an in-house network.

Security

Cloud security is as good as or better than that of traditional networks. It is important to discuss security with your vendor before putting your data in the cloud. This area is another where there are two sides to the cloud benefit coin.  Though the web offers sophisticated security technology, users are not equipped to verify that their data is secure.  It's a matter of trust and optimism. One in seven of over 350 companies polled by access assurance firm Courion admitted that, although there were potential access violations in their cloud applications, they did not know how to find them.[1]

Look and Feel of the Web

The best cloud applications take advantage of design techniques unique to the web to provide clean, easy to use interfaces.

Sample Time Entry list in a popular desktop practice management application:

Sample Time Entry list in a popular cloud practice management application:

On the desktop application, one assumes a double click will open one of the listed entries.  On the web, the way to edit an entry is obvious with a contrasting color, hyperlink "Edit" button.

You're Already There

Your data is already in the cloud!  If you have an account with any of these popular web services, you have already put some of your data into the cloud:

These are mainly personal applications.  The following discussion focuses on how your firm and client data can work in the cloud.

How Law Firms are Using the Cloud

Backup

Offsite backups are a popular use for the cloud.  A few of the providers are:

• Abaxio (formerly Abacus Online Backups)

• BluePoint Data

• LiveVault  (Iron Mountain)

• MozyPro

Precautions:

• Know what is involved in retrieving your data.  I have seen it take several days to retrieve data from an offsite backup system.

• Offsite backup alone is not a complete backup plan!  Include an on-site backup.  See Anna Yen's article, Backing Up in Cyberspace, GP Solo Magazine, December 2005: http://www.abanet.org/genpractice/magazine/2005/dec/backup.html.

Communication and Collaboration

• Web-based email services

• Hosted Exchange

• Blogs

• Web-based conferencing

• Document sharing

Practice Management

Legal practice management covers all of the functions that go into running your practice.  Firms are using cloud-based applications for several of these functions. Practice management and attributes of some of the cloud-based systems are discussed in more detail below.

What Is Practice Management Software?

Practice Management software allows a firm to centrally store and manage various types of information including:

Typically practice management software allows you to access your data from hand-held or remote computers, integrate or synchronize with office applications, and automate repetitive tasks such as new client intake and document production.[2]

Some cloud-based products provide these functions, or integrate with other products to close the gap. When considering a product, think about your entire practice.  One of your goals, whether in the cloud or on the desktop, should be to minimize the number of applications required to manage your practice. If you find you need multiple applications, and most firms do, make sure common data is shared between them as smoothly as possible.

Cloud-Based Practice Management Considerations

Functionality, Flexibility and Customization

When examining cloud practice management software, don't overlook functionality needed in your office.  Don't assume that because it's called "practice management" that it will do all you expect from practice management software. Some of the products are simplistic when compared to traditional desktop practice management.

I have worked with numerous firms who have implemented practice management applications.  Most are very demanding as to specific functions and value the ability to custom-tailor the software both at the firm level and the user level. Take the time to compile a very specific requirements checklist and compare it with the functions available in the cloud application.  Some questions to ask are:

• Do we need group scheduling?

• Do we need to share our calendars with others in the firm?

• Do we need to use rules-based scheduling?

• Do we need to prioritize and delegating tasks?

• Does the system provide flexibility in formatting bills?

• Can we run multiple timers?

• Does the system allow us to divide a bill among multiple payers?

• Do we need UTBMS task-based billing?

• Does the system integrate with our accounting system?

• How does it merge the data to create documents?

• Does it integrate with Word and/or WordPerfect?

Vendor Strength

As with any new technology, several companies are entering the ring.  Choose a company that is financially strong and has a good support community.

Ethical Considerations

Bedome familiar with the latest ethics opinions concerning the cloud.

Read your vendor's subscription agreement!

The 24-hour Work Day

Cloud computing means your work is available to you anytime, anywhere, but do you want to be available to your work 24/7?

There's a downside to being allowed to work from anywhere; being required to work from anywhere. "As more people become available 24/7, there'll be an expectation that you will be too." You won't have to go into the office—but you might not be able to get away from it either.

-- From The Flexible Future, AARP Magazine December 2010

Prepare for the Worst Case Scenario

What will you do if the company that hosts your practice management software and data goes out of business?

What if there is an extensive interruption of internet service?

The Solution? Local Backups!

Local backups are your best protection in a worst case scenario.  Know how to create and use a local copy of the data housed in your cloud application.

Adoption Rate of Practice Management Cloud Applications

According to a recent University of Florida Institute of Technology Survey, about 1/3 of firms surveyed use case management sofware.  Of these firms, 14% have implemented cloud applications for case management.  Several issues remain including:

• Security

• Confidentiality

• Reliability

• Speed/Performance

54% of small firms say they won't adopt cloud apps for CMS even though they do not think hosting attorney/client privileged data in a web-based program rises to malpractice.

-- Andrew Adkins, Law Technology News, March 2010

Popular Cloud-Based Practice Management Products

Clio

By Themis Solutions Inc., Vancouver, British Columbia

An Award-winning solution

At LegalTech in February 2010, Clio accepted a Law Technology News LTN Award for excellence in practice management software, a prestigious honor determined by the votes of LTN’s subscribers.  Clio was also selected by TechnoLawyer as “Best in Show” at the ABA TECHSHOW 2010 and ABA TECHSHOW 2009. In addition, more than 95 percent of Clio’s users said they would recommend the software to others according to the company’s latest Customer Satisfaction Survey. 

Some of Clio's offerings are…

* Contact management with a good method for handling of people and companies

* Document management including Client Connect that allows you to share documents and invoices with your clients.

* iPhone interface

* Time and Expense Tracking

 * Billing – Allows for varying bill formats (Themes), statements of account, discounts and taxes, multiple general and trust accounts; can export bills to QuickBooks; includes Accounts Receivable, Billing History and Productivity reports.

* Calendaring with option to allow others to view your calendar; includes a Firm calendar

* Stores documents via manual upload and connects them to matters.

* Notes connect to Contacts to provide additional information beyond basic contact information.

* Matters – view open, closed or all matters with related contacts, tasks, notes, time & expense entries and documents, choose from four matter numbering schemes

* Offline option for when you can't connect.

* Synchronization with Outlook

Cost:  $49/month for attorneys; $25/month non-attorney

Rocket Matter

Rocket Matter, LLC, Florida

An early case management cloud application, Rocket Matter has been on the market since 2007.

The features of Rocket Matter include:

* Contact Management

* Matter Management - makes current and past case and client information available immediately; includes tagging to categorize matters

* Calendaring - lets users track important dates and deadlines in the context of matters.

* Task Tracking - provides task tracking tool to keep organized and delegate responsibilities.

* Mobile Access - enables you to view an optimized version of Rocket Matter on a smart phone.

* Invoice Generation and Payment Tracking - creates Word, WordPerfect, and PDF invoices and allows firms to track accounts receivable.

* Document Storage - links your documents to your matters.

* Time and Expense Tracking - captures billable time and costs, easily and quickly.

* Billing - Allows for individual or batch billing.

* Offline Access - maintains backup copies of your data locally; and offline time entry.

* Phone Messages - message taking and inter-office communication tool.

Cost: $59.99/month for first user; $49.99/month for each additional user; includes support

AdvologixPM

Advologix.com LLC, Sugar Land, TX

A newcomer in the legal practice management arena, AdvologixPM uses the Salesforce.com platform, to deliver a feature-rich product offering:

* Contact Management

* Client Relationship and Matter Management

* Scheduling and Docketing

* Time, Billing and Expenses

* Invoice, Payment and Retainer Management

* Document Automation, Assembly (DrawLoop)

* Document Management (through integration with NetDocuments).

* Fully Functional Mobile Application

* Outlook and Google Apps Integration

* Client and co-counsel portal for sharing documents and receiving online payments

* Customizable forms and fields

* Customizable work flow and scheduling rules

* Instant messenger

* Offline client for working when disconnected from the internet

Cost: $55 - $90/per user per month depending on number of users; additional charge for optional functions

Getting Legal Done

Getting Legal Done, Bridgeway Software, Inc., Houston, TX

For small in-house legal departments, this online service manages contracts and matters.

Cost: $49/per month per user.

HoudiniESQ

LOGICBit Corporation, Cary, NC. This company was founded in 1994 by the architect of Time Matters World Server, a now discontinued web-based version of the popular case management software.

* Contact management

* Matter management

* Document management

* Calendaring with group scheduling

* Time and Expense tracking and billing

* Email client or integration with Outlook email

* Email merge templates

* Controlled, free client access

* Microsoft Office integration

* Webmail integration (Gmail, HotMail, Yahoo)

* Customization – staff can create and share custom views and filters

* Mobile application available

* Data on premises option

Cost: 1 seat – FREE; One time server license $1,280 plus $192 per seat per year

Online Document Management

NetDocuments

NetVoyage Corporation, Orem UT

* Organize, store and share documents.

* Integration with Office and Acrobat

* Search for text within documents

* Save searches

* Recently accessed documents list

* Store emails and attachments

* "Echo" local copies of documents

* Check in/check out prevents simultaneous editing of the same document

Requires Internet Explorer. This is the Document Management solution used with AdvologixPM.

Cost: $20/month, $30/month or $38/month per user depending on edition

DropBox

The MacLawyer describes DropBox as follows: Think of it as file sharing without having to set up the server. Working on a collaborative project? Share out that folder with people and give granular access to files and folders in the project. The folder automatically checks to see what’s been updated locally and updates the folder accordingly. Need to get someone changes to a document or a series of documents? Don’t email them—just work out of the drop box and everyone will see your changes immediately after you save the file.

* Document storage

* Synchronization of DropBox online folder

* File sharing

* Version control

* Runs on a variety of browsers, PC, Mac or Linux

Cost: Free - $9.99/month or $19.99/month depending on storage

Google Docs

Google, Inc.

Share and collaborate on documents, spreadsheets and presentations. Edit and view documents using Google's version of popular office applications (Google Apps).

Cost: Free

Worldox CompleteCloud

World Software Corporation

This hosted environment includes the popular Worldox document management software and Microsoft 2008 Server, Microsoft Office 2010 Professional, a Virtual Windows 7 Desktop, Exchange Server, backup, antivirus protection and update management. Other applications such as QuickBooks and Tabs3 may be added to your CompleteCloud hosted server.

Cost: Approx $100/month per user.

Testimonials

Here is what your peers are saying about some of the popular cloud practice management applications.

-- Seattle attorney

-- Chicago, 7-attorney firm

Our firm switched to SaaS because it makes the tech side of things easier.  It does everything the onsite software does, except it’s easier to update, to implement, and it’s painless to access from anywhere.  Here are the basics of what we use to manage our practice:

    Email and Calendar: Google Apps

    Case Management Software: AdvologixPM

    Document Management Software: NetDocuments

Security – Everyone’s initial reaction is “Oh, I feel safer having the files under my control, on-site.”  NetDocuments is probably more secure than what 99% of law firms have in place.  What would you do if there’s a fire or some type of water damage to your file server?

Client Portals – Another personal injury law firm referred a case to me last week.  The files were way too large to email, and we wanted to review the case file as soon as possible.  I set up a “client portal” for the attorney.  She uploaded the documents to the file (she and I were the only ones that could access this portal).  This took less than 10 minutes to do.  It took awhile to print the files though.

Full testimonial: http://www.oklahomalawyer.com/AttorneyResourceBlog/law-firm-management-with-software-as-a-service-saas/

-- Oklahoma three-attorney firm

Bonus Tip: Password Management

LastPass

Tired of trying to remember all of your online passwords?  Try LastPass. 

* A single master password is all you'll need to remember.

* Synchronizes across browsers and computers

* Automatically login to sites.

Cost: Free for Basic; $1/month for Premium.