Originally published on March 8, 2010 in our free SmallLaw newsletter.
Warning — a rant is headed your way. A well-reasoned and situationally warranted one I believe, but definitely a rant. If I hear one more debate about whether lawyers should use software as a service (SaaS) (aka cloud computing systems), my head might explode. This debate is perpetually mired in concerns about accessibility, ethics, and security. It's time to move past these nonissues and focus on more relevant issues that will enable SaaS products to mature into mainstream small firm products.The Two Most Hotly Debated SaaS Issues Are Nonissues
Like many others, I've consistently sounded the dual alarms of SaaS: caution about newer technology, and of professional responsibility. These cautionary points do not revolve around functionality, necessarily, because there is much to be said about the "less is more" design approach embodied by SaaS products (especially practice management systems).
Rather, reasonable prudence from a best practices perspective focuses in part on continuity — availability of practice-critical data such as docketing and deadline information, documents, and core matter information. Small firms still need to reckon with access issues such as a data outage or slowdown anywhere in the digital pipeline, or vendor insolvency complicated by a predictably recalcitrant bankruptcy trustee.
It is relatively easy to address potential continuity issues. Eventually, legal SaaS system providers will build the local system mirroring/syncing/replication tools to ensure the same offline accessibility that enterprise corporate products have had for years. Why haven't the small-firm oriented legal SaaS providers built workable, immediately usable offline capability yet? Beats me — they know it's an issue and they must be tired of the constant pundit criticism.
The reality, however, is that continuity issues need to be balanced against the possibility of internally-maintained software becoming inaccessible because of a panoply of technology troubles. Digital bad days blacken all doorsteps — both externally and internally hosted applications fall prey to disrupted access.
Other concerns continue to swirl, especially vague ethical rules regarding surrender of control of confidential client information to third parties. The confidentiality issue ties into data transmission and encryption issues as well as the disposition of confidential information in the event of vendor insolvency and dissolution.
The reality, in the absence of inevitable ethical opinions and updated rules of professional responsibility, is that the ethics issues are largely a red herring. There is a long tradition of permitting third party data access and control to confidential client information. The obvious example is using third parties to retrieve and maintain archived client files, or to process electronic discovery files. Even online data backup, with multiple state bar associations having vetted and endorsed various services, has become informally accepted.
So let's just all get over it — SaaS makes sense. The above issues will be resolved, likely sooner rather than later. If the world's largest corporations can place their trust in wildly successful and field-proven SaaS products such as Salesforce.com, legal SaaS systems will become just as trustworthy. Outside of the small firm sphere, we already see very successful examples of SaaS legal applications, including mission critical systems such as financial management products. Rippe & Kingston's LMS+ is a sound example.
It's the Functionality, Stupid
In a world where universal access across multiple devices is rapidly becoming a necessity — PCs, Macs, iPhones, BlackBerrys, and now iPads — the browser interface is inevitable. The faster traditional software vendors realize that users prefer simpler, consistent browser-centric interfaces, the more likely they'll survive and thrive in the long run.
So what should we focus on when it comes to SaaS? How about functionality? How about shifting the debate to what really matters to users. Whether financial, document, litigation, or practice management, how well do the various products perform? Does this shift in focus mean that SaaS providers should be given a free pass when it comes to continuity and ethical issues? Of course not. Law firms must do their homework in this regard, but they must also evaluate the features.
Only by focusing on the needs of small law firms can we improve existing SaaS products and encourage new entrants into the marketplace. For example, there's no reason that Rippe & Kingston can produce a fully-featured, hosted financial system, but not produce a functional equivalent for smaller firms, scaled down to a lower hosted price point. The point is that the models are there for SaaS success. Further, Rippe & Kingston offers a particularly intelligent choice for its customers — hosted or self-hosted (so-called "iSaaS" or "internal software as a service"). I expect similar offerings from the providers of traditional software if and when they enter the SaaS market.
The small firm legal SaaS world can most certainly succeed. SaaS vendors should focus on promoting functionality first, while methodically shoring up their services' perceived and/or real weaknesses in the two fundamental areas of platform criticism. Address and end the current stalemate and grow up SaaS — the small firm market is ready for and needs you.
Lawyer Ross L. Kodner is the founder and principal of MicroLaw, a legal technology and law practice management consultancy renowned for its work with small law firms (as well as larger firms and corporate/government legal departments of all sizes). Though based in Milwaukee, MicroLaw serves small firms and other clients around the world. The recipient of many industry awards (including five Technolawyer Awards), Ross speaks at many events and blogs at Ross Ipsa Loquitur, finalist in the ABA's 2008 Blawg 100. If your firm is ready to practice smart and seeks to thrive in spite of these tough times, we suggest you contact Ross.
Written by Ross Kodner of MicroLaw.
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