The Risks and Benefits of Cloud Computing

Question 1

Why should law firms use the cloud?

Answer 1

There are 3 big factors in favor of law firms using the cloud

Question 2

1. Cost Savings

Answer 2

This applies to both the law firms that use cloud computing and the software companies that offer the service. More and more software companies are shifting their focus to the cloud since it is more cost-effective and generates better revenue compared to on-premise solutions. As a result, on-premise solutions are decreasing

Cloud users typically see a return on investment quickly through cloud computing due to the time saved, centralized information, low operating costs, and predictable costs (when compared to on-premise solutions). These users won’t have to make heavy investments in changing their hardware to be compatible. Most firms and lawyers will be able to use their existing hardware or can choose something more cost-effective. Lawyers also gain the freedom to work where they are, meaning they can work and access their matters anywhere with an internet connection which can help make firms more efficient.

Question 3

2. Capacity

Answer 3

According to Logickull, the average matter has 130GB of data associated with it

As case volumes increase and become more complex, are on-premise solutions going to be flexible enough to adapt to this explosion in growth? Will firms be on the hook for high costs to accommodate the need for more hardware and storage?

Cloud services allow customers to handle this data growth more easily

Question 4

3. Security

Answer 4

Gartner expects by 2020, there will be 60% fewer security incidents on public cloud infrastructure. Through 2022, at least 95% of cloud security failures are predicted to be the customer’s fault

Using a service like Clio allows law firms to transfer security labour to their vendors. The vendor will configure it, manage it, and ensure that it’s kept current to protect client information against evolving threats

Cloud services also have the advantage of economies of scale and specialization. This improves security because cloud vendors can (and do) invest in security infrastructure in ways that individual firms can’t (e.g. physical security, regulatory compliance, disaster recover, and business continuity

Additionally, many clients of law firms require a certain level of security with the firms they work with. 62.5% of mid-size law firms have had their clients provide security requirements and guidelines

Question 5

Are there risks?

Answer 5

Not all cloud offerings are alike.

• only 20% of providers offer multi-factor authentication, for example
• a thoughtful, informed selection process is very important

Question 6

It’s possible for customers to waste their cloud spend

Answer 6

• examples of this include having more licenses than are needed, purchasing too much storage space, or not utilizing all the features
• this can often be managed on a month to month basis
• may require a new role or responsibilities for someone to manage and optimize cloud costs