Cloud Computing for Lawyers: An Introduction

Feb 2, 2010 - by Nicole Black

Over the last year I’m sure you’ve heard a lot about “cloud computing” and by now you’re probably wondering: what exactly is it?

At Webopedia.com, “Cloud Computing” is defined as a “type of computing that is comparable to grid computing, relies on sharing computing resources rather than having local servers or personal devices to handle applications. The goal of cloud computing is to apply traditional supercomputing power (normally used by military and research facilities) to perform tens of trillions of computations per second.”

In other words, cloud computing makes it possible for  your data and software platforms and services to be stored offsite, in the “cloud".

Online services of this type, which include software as a system (SaaS) and platforms as a system (PaaS), are becoming increasingly common and, for many lawyers, are an attractive alternative to the traditional law practice management software installed and maintained on a local server within a law office.

What is SaaS?: Understanding the Concepts of Cloud Computing

Feb 9, 2010 - by Nicole Black

Last week we discussed the basic concept of “legal cloud computing”. Now, let’s try to gain a better understanding of the concept by addressing the basic components of “cloud computing.”

The concept of cloud computing arises from the interplay of three concepts: IaaS (Infrastructure as a service), PaaS (Platform as a Service) and SaaS (Software as a Service).

IaaS can be defined as: “a model in which an organization outsources the equipment used to support operations, including storage, hardware, servers and networking components. The service provider owns the equipment and is responsible for housing, running and maintaining it.”  Amazon EC2 and Rackspace are examples of this type of service.

SaaS can be defined as a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet.” The vendor provides daily technical operation, maintenance, and support for the software provided to their client. Examples include the email service Gmail and the virtual data room service offered by Firmex.

The Information Overload Dilemma

Feb 16, 2010 - by Nicole Black

Two weeks ago, thousands of attorneys and other legal professionals descended upon Manhattan to attend LegalTech New York, hoping to catch up on the latest legal technologies and innovations.

The annual LegalTech conference is sponsored by ALM with the goal of helping lawyers and law firms learn about the latest advances in legal-related technology. It features multiple educational tracks focused on a variety of legal technology issues, from ediscovery to knowledge management, cloud computing and social media.

One particularly interesting part of the conference was one the keynote presentations — “I3: The New Convergence of Intelligence, Intuition and Information” which featured a panel including Malcolm Gladwell (link to:http://www.gladwell.com/), the New York Times bestselling author of “Blink” and “Outliers”; Thomson Reuters Chief Strategy Officer David Craig and Dr. Lisa Sanders, New York Times Magazine Diagnosis Columnist and technical advisor to the television program “House, M.D.”

Virtual Data Rooms Offer a Secure Alternative to Email

Mar 9, 2010 - by Nicole Black

As discussed last week, the unencrypted email systems used by most law firms are inherently insecure and place confidential client data at risk.

However, there are secure alternatives to email, using cloud computing products, like Firmex online document workspace, that incorporate some form of encrypted client communication into their platforms. These cloud computing platforms provide lawyers with a ready-made solution to the problem of unencrypted, insecure email.

There are a number of products available that allow attorneys to securely exchange large volumes of confidential documents and information with opposing counsel, clients and others. For example, law firms can use secure virtual data rooms such as those provided by Firmex,  to collaborate and communicate with other users, manage online due diligence, exchange closing drafts, create digital record books, share litigation documents, and secure client access to important files.

Cloud Computing Industry Reaches New Heights in Design

Mar 11, 2010 - by Robert Wilder

Ad agencies and design firms, as creative shops, have always used the design of their spaces to inspire their employees to creative heights. But, really, it’s in every business owner’s interest, no matter what industry, to build an employee environment that invites creativity and productivity.

Firmex’s software engineers, busily developing hyper-secure code that drives millions of mission-critical documents that are accessed by 10,000s of users every month, should be treated to a space that is as dynamic as their work in the SaaS industry. Also, a large portion of our business as a data room provider is devoted to making our clients happy, with an in-house client services staff working 24/7 to help people with transactions valued in the billions of dollars every month. Happy employees mean happy customers, and a happy employee begins with a great work environment - that’s why I decided to design a new office that was both practical and aesthetically pleasing.

Although I had a brief two months to complete the project with my designer, I knew what I wanted: a simple space, full of natural light, that wouldn’t be overdesigned to the point of distraction.  I wanted the new space to act as a simple canvas for expression. The space itself was inspiring – great views, high ceilings and columns that reminded me of the Frank Lloyd Wright-designed SC Johnson building.

Law Practice Management Software: An Overview

Mar 17, 2010 - by Nicole Black

Legal practice management software is a must-have for most law offices. It streamlines the process of handling and managing a case from start to finish. Law case management systems allow busy attorneys to keep track of contacts, documents, and calendaring, among other things, for each case that is added to the system; many offer time tracking and billing features as well.

For most law practices, purchasing practice management software that is well-suited for the size and specific practice areas of the firm is a good investment that saves time and money in the long run.

One decision lawyers must make when choosing legal practice management software is whether to purchase a web-based law practice management system or a traditional desktop system that is installed and housed on the law firm’s server. Once you’ve decided which type of platform you intend to use, you can then narrow down your choices based on the specific features offered by a particular system.

Software-as-a-Service (SaaS): What is the Impact?

Apr 1, 2010 - by Joel Lessem

I was in the client-server business from 1993-2005 and since 2005 I have been in the SaaS business.  I am awestruck with the economic impact SaaS has had on the software industry in the last half decade and, I suspect, it will grow to be of similar magnitude to the Internet’s effect on newspapers, music and publishing.  I have no doubt that the efficiencies SaaS drives will completely disrupt the software business and here are the reasons:

Less Expensive: To Make, Distribute and Own

To develop and maintain software on a single version in a controlled production environment is cost efficient.    In other words, the internet, or “cloud,” eliminates the expense of travelling sales people, consultants and VARs distribution. Without on-site servers, labor and maintenance costs are cut and there is no matrix of software versions to upgrade.   Without a matrix of versions, the “best of breed” application easily integrates with other products, cutting out costly software customization and the need for retrofitting custom code on upgrades. Furthermore “Perfect Fit” best of breed applications can be more easily distributed over a broad geographical area via SaaS.

Jack Be Nimble, Jack Be Quick…How to Handle Market Risk

Apr 22, 2010 - by Joel Lessem

Recently, I have been reading Steve Blank (founder of 8 technology companies) on how to successfully take a technology to market.   He has a tremendous blog with all his articles. Here is my summary of some of Mr. Blank's key points.

There are two types of risk for a Research and Development based company - market risk and technology risk. For example, technology risk applies to Life Sciences firms when they are searching for a cure for a terminal illness – it may take them 10+ years to prove the drug works.  If they find the cure, however, there really is not a market risk; the product will be in large demand.

For software companies, like Firmex, the market is risky.  When starting a software company you need to  align what you build with a significant group of customers (market).

When tackling risk, the fundamental source of failure is assumption.  Whenever you start a project the only thing you can safely assume is that your assumptions are flawed.

Cloud Computing: Security Issues for Lawyers

May 11, 2010 - by Nicole Black

In prior posts I discussed basic cloud computing concepts and the ethical issues triggered by cloud computing. There are also security issues that lawyers must consider when deciding whether to use cloud computing products in their practice.

Two key steps lawyers can take to ensure that their data is secure are to:

1. ask the right questions of cloud computing vendor and
2. ensure that their contract with the vendor addresses important security issues.

1. What type of facility will host the data?
2. Who has access to the data?
3. How frequently are back-ups performed?
4. Is data backed up to more than one server?
5. How secure are the data centers?
6. What types of encryption methods are used and how are passwords stored?
7. Are there redundant power supplies?
8. Is there more than one server?
9. Where are the servers located?
10. If a natural disaster strikes one geographic region, would all data be lost?

North Carolina Lawyers can use Cloud Computing Services in their Law Practices

Jun 8, 2010 - by Nicole Black

The North Carolina State Bar (NCSB) recently issued a proposed formal ethics opinion (proposed 2010 FEO 7), which may assist lawyers in assessing the risks of using a particular cloud computing product in their law practice.

The primary issue addressed by the NCSB was whether a law firm may use SaaS-based platforms, such as law practice management software, and thus store confidential client data on servers located offsite and controlled by a third party.

The NCSB concluded that it was permissible for lawyers to do so as long as steps were taken to “effectively minimize the risk of inadvertent or unauthorized disclosure of confidential client information and to protect client property, including file information, from risk of loss.”

Importantly, the NCSB stated that a lawyer is not required to guarantee that a system is “invulnerable to unauthorized access” and that a law firm’s duty to protect confidential client information does not compel a particular method of handling the information, nor does it prohibit the use of third party vendors who may have access to the data.