Software Conundrum

SaaS
By Dominic Jaar

Practice management has always been a hotly contested sector in the legal market, dominated by client/server software products such as Time Matters and Amicus Attorney. However, a healthy new faction of Web-based SaaS (software as a service) practice-management products from providers such as Clio (goclio.com) and Rocket Matter (rocketmatter.com) has been introduced in the past year, and they are snapping up market share fast?especially among solo and small firms.

Because I do much of my legal and consulting work online, I became a SaaS convert early on. I have been using Clio for the past several months, and it is a very handy solution. But doesn't the online nature of SaaS applications make them more vulnerable than client/server products like Time Matters? In a word, no. Many SaaS systems secure the communication of data, logins, and passwords with bank-grade encryption.

Besides that, most solo and small-firm attorneys that use client/server software are taking huge security risks they don't even realize. Many have no password protection at all, or their password is written on a Post-it displayed near the computer. And if their laptop is stolen, the data goes with it because many of these lawyers don't back up their work. And SaaS products actually store all user data on a secure off-site server, so the data is protected even if a user loses a laptop or there is a flood or fire in the office. Plus, some SaaS providers, including Clio, have an escrow provision that safeguards your data if you decide to stop using the system, or if the provider folds.

SaaS solutions also provide unequalled accessibility for mobile attorneys. You can access your data, contacts, billing, and time entry from any Internet connection, whether you're in a hotel business center, an airport kiosk, or at home.

In addition, SaaS can be updated instantaneously. Also, you don't have to worry about upgrading or patching the software?the SaaS central administrator does that for you.

SaaS pricing can also be more favorable. For example, Clio costs just $49 a month per lawyer, and there is no up-front or installation cost. The easy-to-use system requires minimal training. Client/server products can cost $2,000 to $4,000, which includes software, hardware, maintenance, installation, and training.

Right now, the cost and functionality of Web-based practice management make it a great fit for small and solo firms. And as huge companies such as LexisNexis start to push SaaS solutions, it's just a matter of time before large firms also come on board. Client/server products will be around a while longer, but in my opinion their days are numbered.

Dominic Jaar is an attorney and legal counsel at Ledjit Consulting.

Client/Server
By John Simek

Despite the oft-repeated Jerry Mcguire line of "show me the money," implementing law-firm technology isn't always so straightforward. It's more important to identify the real cost of putting the technology into operation. By this standard, the traditional client/server model is a better solution for laws firm than software as a service (SaaS) offerings.

The client/server model puts data control totally in the hands of the law firm: The data is held internally, and access is controlled by the firm. You can choose to encrypt the data locally (which I recommend), or leave it in plain text. Either way, it is secure within the walls of the law firm.

By contrast, the SaaS model puts your data in third-party hands. This is not necessarily a bad thing, but do you really know if the information is secure? The contract may specify that the data be stored in encrypted form, but what if a disgruntled employee decrypts the data and then sells it to the opposing party in major litigation?

When you contract with a SaaS provider, you are required to accept the service as delivered. This means that the SaaS company will implement any upgrades or bug fixes. That may sound like a good thing, but perhaps the upgrade requires you to pay additional fees, or takes your old data through a conversion process that drops important field values, which then have to be reentered manually. The client/server model leaves the upgrade decision to you.

Also, the financial stability of the provider is a major concern, especially in these tough economic times. The last thing you need is to have your SaaS provider go out of business. If that occurs, and even if you have adequate notice, the cost of migrating your data to another provider or to bring it back in-house can be significant. Either way, you will probably want to bring the software function back within your IT department's control at some point, or move to another provider.

Too often, all the costs and risks are not considered when analyzing a SaaS solution. Client/server solutions can be clearly defined through the entire life of the software. You control the implementation, configuration, and ongoing costs. Although you can contractually specify some costs with a SaaS provider, future upgrades and exit conversions may tip the financial decision to a client/server product.

The bottom line is to keep control of your own data. It will be cheaper and less risky in the long run, and you won't have to worry about your SaaS provider not being around.

John Simek is the vice president of Sensei Enterprises, Inc., a computer forensics and legal technology firm in Fairfax, Virginia.

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