A Case for Operating in the Cloud

Don't stress the technical points. Not many attorneys are that interested in the deeply technical issues.

Don't mention the term “cloud” computing too early. I would suggest call it Software as a Service (“SaaS”). I was talking to an older partner at a firm about the move to the cloud. Once I mentioned the term cloud, he sat up straight, stood up and said that his children used the cloud to download their songs on iTunes and that “our firm doesn't do iTunes.” No matter how much I explained that what I was talking about had nothing to do with iTunes, he was fixed on this idea and the (negative) image he believed it gave his firm.

Approaches to Try

Improvement in performance. High-quality attorneys and support staff working all over the world can help. They are available 24/7 to turn work around faster. In addition, the cloud will result in better document management and retention resulting in greater client satisfaction. Other benefits iclude:

• Tremendous cost savings to the firm.
• Lower costs due to outsourcing to lower wage areas.
• Lower IT costs.
• Lower real estate costs.
• Lower electrical costs.

Increase value of practice to sell or merge. There are three factors in selling or merging a firm: Good price, well-run business and ease of integration with new firm. Cloud computing makes reasons two and three much easier.

Point out the growth of virtual law firms, like FSB Legal Counsel and Axiom Legal and the growing ability of small attorneys to leave large firms and take away high-end legal work because of their ability to work together more easily and cheaply.

Conclusion

I challenge you to do everything in your power to move your firm to cloud computing. If the lawyers in your firm won't listen to you because you aren't a lawyer, call me and I'll talk to them if it will help.

If you don't succeed in your mission, a managing partner in your firm will be reviewing the financials as I did in April 2009, but the results will be different. He or she will see dropping revenue, increasing expenses, and plummeting client satisfaction and this combination means the firm won't remain open. I know you can succeed because you are right and you are riding the wave of history.

A 27.5% drop in revenue will get your attention. It did mine in April 2009 when I reviewed my firm's financial results for the first quarter of the year. I was shocked, and worried whether my practice could stay open. I knew some of my competitors had gone out of business and I was afraid I was next.

But, I didn't feel things were too bad and as I looked farther down the income statement I realized why.

• Rent Expense: down 50%;
• IT Costs: down 90%;
• Outside Workers Cost: down 60%; and
• Payroll Costs: down 40%.

I realized then that my movement to Microsoft's “cloud” enabled me to survive this downturn and will help me thrive in the upturn. Without it, I may not have stayed in business. There are two ideas I would like to emphasize with this article.

First, cloud computing will drastically change the legal industry.

Second, as an IT person in your firm, your most important mission is to get your firm to move to the cloud.

This article discusses three topics: Why and how I moved to the cloud, what I'm doing and not worrying about with cloud, and why the best ways to persuade attorneys that they have to move to the cloud.

Saving Space, Saving Money

The main reason I moved to the cloud was to save rent. I had two big, noisy and hot servers in my office and I was spending $30 per square foot for the computers to sit. My lease was coming up for renewal and I decided I wasn't going to pay for the servers to sit in Class A office space in New York, but I needed the services the servers provided.

First, I explored the possibility of using Google applications, such as the calendar and word processing. I found that they would be fine for myself, but to collaborate with other staff they were not strong enough to replace Exchange Server and Microsoft Office.

Jonathan Mann of Collabra Networks told me about Microsoft's Business Productivity Online Standard Suite (“BPOS”) and found that the cost was very reasonable; $15 per month, per person, with a five-person minimum license, including all of the functions of my current servers, without them taking up space in my office.

In addition, BPOS included Sharepoint so I could store all of my files on Microsoft's server, as well as LiveMeeting so I could host meetings on my desktop.

In a few days, I migrated all my data to Microsoft's server and a few weeks later moved my office and left the servers behind. When I arrived at my new office I held my breath, plugged in the computers and Internet connection and ' everything worked fine. e-Mail, calendars, tasks and all the documents were readily available on Microsoft's computer and we were back to work right away. I was so relieved ' and every month when I pay the lower rent I am so happy I made the transition.

A colleaugue who is less reckless than I am assures me it is not necessary to leap as much as I did. You can keep some of your data in the cloud and some on your server until you're sure the cloud works for you. He also said that active directory integration is available as a free add on to BPOS or Exchange Online.

BPOS has improved my office performance by allowing me and my staff, both in the office and remote workers, to access information more effectively.

BPOS

Before I moved to BPOS, everyone used a virtual private network (“VPN”) to take control of a computer in our office. While this usually worked, it required that everyone who worked with me have two computers, one in the office and a remote computer. As I used more outside workers, providing them a computer in my office to work on through their remote computer became too expensive. Now they can work remotely using their own computer and accessing their e-mail and other Exchange services by logging into Outlook Web Access and sharing documents using Sharepoint.

I can synchronize my e-mail, calendar, and tasks by using my cell phone with Microsoft's server much better than under the old system. I have a phone that uses Windows Mobile 6, but BPOS will also synchronize with the newer BlackBerry, iPhone, and Nokia E and N series. At this point, BPOS does not work with Palm-based devices because Palm has not licensed the needed active sync technology from Microsoft.

I have also been using Microsoft's LiveMeeting, which is included as part of BPOS. This allows me to invite clients or co-workers to an online meeting and share my desktop.

'What, Me Worry?'

Moving to BPOS has also removed the worry about two things. First, I don't have to worry about the server breaking. My greatest fear was that one day, particularly during our busy season, the server would break. Even with a full backup, in the past it took at least a week to get a new server and get it working. There was nothing I could about this but worry. Now, I can sleep better at night.

Also, I don't need to worry about the backup working. I backed up to external USB drivers and was supposed to switch them every week so I would have one in the office and one at home, but I often forgot to bring the one from home. Now I don't have to lug those devices.

Finally, I would like to help persuade lawyers to move to the cloud.

The first thing to do is find out when the firm's lease is up. If your lease expires within three to five years, this is a powerful tool to start the discussion about a rent reduction when renewing the lease. That's what motivated me and many attorneys I know.

If the lease has many years to go, the situation isn't hopeless. The firm may still be able to surrender space or sublet some of the space opened-up by the move to the cloud.

Once you know your lease expiration date, I would suggest you discuss the move to the cloud using the “good cop/bad cop” example from the movies and TV.

The “good cop” approach appeals to the attorney's better nature. Despite all the jokes, most attorneys want to help their clients, and if you show how the move to the cloud will increase their client's satisfaction they will be interested.

The “bad cop” appeals to the attorney's fear. You have to convince him or her that if the firm doesn't move to the cloud it will eventually die.

Approaches to Avoid