FYI: Software as a Service (SaaS) for Lawyers

Though the heart of the legal profession is the practice of law -- the diligent research, the careful crafting of arguments and documents, the persuasive courtroom advocacy -- most attorneys will admit that they spend a frustratingly large portion of their working hours away from the law, focused instead on the business and clerical duties involved in running or working for a law practice. To handle these mundane business responsibilities, many attorneys turn to specialized software developed for the legal industry, including software for case or practice management, time and billing, evidence management, and trial presentation.

Unfortunately, there are a number of drawbacks to traditional legal software: substantial up front licensing costs, hardware upgrades, steep learning curves, high training costs, and the need for expensive consultants or IT staff to install, configure, and maintain the software. Recently, however, a new alternative has begun to surface that may offer many of the productivity and efficiency benefits of traditional legal software with fewer (or at least, different) drawbacks: Software as a Service ("SaaS").

SaaS is distinguished from traditional software primarily in that it is accessed via a web browser (like Internet Explorer or FireFox) over the internet rather than installed directly onto the user's computer. For example, Microsoft Office would be considered traditional software while Google Docs would be SaaS.

Is a legal SaaS solution right for you firm? Here are some of the factors you should consider when evaluating SaaS, and some specific questions you should ask SaaS vendors before signing up.

Functionality/Usability

Much of the traditional legal software currently on the market has been under development for years, undergoing revision after revision as technology and attorney needs have changed. While this means that traditional legal software tends to have a wide range of features, it can also make for software that is incredibly complicated and less-than-intuitive for new users. Because SaaS solutions are new and have been built fresh from the ground-up, they tend to have fewer features but far better - and more intuitive - user interfaces. That said, the "newness" of SaaS also generally means that they lack the existing base of experienced users, consultants, and trainers that one might find with older, more traditional legal software.

When considering legal SaaS, be sure to consider these questions/issues about functionality/usability:

Does the vendor offer a free trial period or demo to test out the interface and functionality of the product?
What training options are available for users of this product?
How many attorneys are currently using this product?

Availability/Access

Access to traditional legal software tends to be limited by both hardware compatibility and licensing restrictions. For example, a traditional case management software may only be compatible with a PC running Windows XP or later, with a certain processor speed and amount of available RAM. Because SaaS solutions are web-based, they're typically compatible across multiple platforms (Mac, PC, Linux, etc.) and browsers (Internet Explorer, FireFox, Safari, etc.). A legal SaaS solution may also be compatible with mobile devices like BlackBerrys, iPhones, and other Smartphones, whereas traditional legal software either cannot be used on mobile devices or can only be used by purchasing a separate "mobile" version of the software.

SaaS also has to the advantage of not being limited to a single installation as is often the case with traditional software. Thus, an attorney subscribing to a legal SaaS solution could use the web-based interface from his or her home, office, or any other location with internet access without having to purchase additional licenses for each computer. This can also be useful for business continuity purposes, as an attorney driven from their office by natural or manmade disaster can be back working as soon as a web-enabled computer is available.

That said, the "internet" component of SaaS software leads to a significant drawback: because the software exists purely online, an attorney who is without internet access for whatever reason cannot access his or her legal software.

Some questions/issues to consider with regard to availability/access:

How often do I need to access my legal software outside of the office?
Is the SaaS compatible with my preferred platform/device/web browser?
Do I work in an area that's prone to disaster or other business continuity threats?
Do I have reliable access to the Internet from work? From home? On the road?
Does the provider offer (or would it be willing to negotiate) a Service Level Agreement (SLA) that guarantees a certain level of service (e.g. uptime, accessibility, customer service response time, etc.)?
Are any relevant guarantees or disclaimers of liability included in the provider's Terms of Service (TOS)?

Ethics/Security Concerns

Another fundamental difference between SaaS and traditional legal software is that SaaS solutions store the user's data -- such as documents, contacts, notes, billing information, and more -- on remote servers rather than on the user's own computer. Given that one of an attorney's foremost duties is to safeguard client files and to protect the confidentiality of the information contained in those files, many attorneys are understandably wary about placing those files on the vendor's servers. Indeed, the issue extends beyond just confidentiality: attorneys must be sure that the files will be secure from destruction or degradation (whether from system failure, natural disaster, or dissolution of the software vendor), and they may be uncomfortable about the possibility of being unable to access their client data offline.

On the other hand, a legitimate argument can be made that files stored on the vendor's servers are actually more secure than those located on an attorney's PC, as the vendors often employ elaborate security measures and multiple redundant backups in their data centers.

Some questions/issues to consider with regard to ethics/security:

How does the vendor safeguard the privacy/confidentiality of stored data?
How often is the user's data backed up? Does the vendor backup data in multiple data centers in different geographic locations to safeguard against natural disaster?
What is the history of the vendor? Where do they derive their funding? How stable are they financially?
Can I get my data "off" their servers for my own offline use/backup? If I decide to cancel my subscription to the software, will I get my data? Is data supplied in a non-proprietary format that is compatible with other software?
Does the vendor's Terms of Service or Service Level Agreement address confidentiality and security? If not, would the vendor be willing to sign a confidentiality agreement in keeping with your professional responsibilities?

Cost

Cost is another area where SaaS and traditional software differ dramatically. Traditional legal software is usually sold by individual licenses, meaning that an attorney must purchase a license up front for each attorney or other user within the firm. Incidental costs related to the software -- such as necessary database licenses, improved hardware, or consultant time for installation/setup -- can add thousands of dollars more to the up front cost of the software. Once purchased, however, additional costs typically aren't incurred (outside of support hours for consultants or IT staff) until the attorney decides to upgrade the software to the latest version or to replace it with a different product entirely.

With SaaS, on the other hand, cost is usually based on a subscription model. That is, rather than paying thousands of dollars up front, the attorney agrees to pay a relatively modest amount every month -- usually per user, sometimes with tiered pricing for attorneys and legal assistants. Attorneys using SaaS may realize additional savings in that they may not have to upgrade their hardware for the latest software, nor do they have to hire consultants (or waste their own potentially-billable hours) to install and configure the software, as that is handled by SaaS vendor.

Over time, the cost of the two options may be more difficult to assess. While traditional software can require huge up front investments, the monthly charges for SaaS solutions can eventually surpass that up front cost. SaaS solutions, however, are upgraded continually, meaning that while a traditional software offering may require an expensive per-license upgrade fee every couple of years to remain up-to-date, SaaS solutions are always up-to-date.

Some cost questions/issues to consider:

What are the monthly costs for the SaaS option, and are discounted rates available for non-lawyer employees like paralegals, legal assistants, and law clerks?
Does the vendor require a contractual agreement to maintain service for a certain amount of time (e.g. 12 months, 24 months)?
How does the cost of the SaaS solution over a two or three year period compare to the cost of a comparable traditional software license?
What's the pricing history of the SaaS solution? How often are monthly rates increased?
Are there any incidental costs for the SaaS solution, like data backup or support?

Ready to investigate some specific SaaS solutions to see if they might be right for your firm? Here are some of the SaaS solutions that are legal-specific or otherwise popular with attorneys: