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Why Mid-Size Law Firms
Adopt Cloud Computing
Joshua Lenon
• Lawyer in Residence
at Clio
• Attorney Admitted
in New York
• @JoshuaLenon
#ClioWeb
Agenda
• Cloud Adoption
• What is the Cloud?
• Cloud Penetration in Law Firms
• Compliance is Cost Savings
• Products as a Service
• Evaluating Cloud Legal Technology
• Questions
#ClioWeb
Cloud Adoption
#ClioWeb
Cloud Adoption
#ClioWeb
Source: ILTA2017 Legal Technology Survey
63% of law firms plan to increase
cloud computing adoption in 2018.
Why?
NIST Cloud Definition
“Cloud computing is a model for enabling ubiquitous,
convenient, on-demand network access to a shared
pool of configurable computing resources (e.g.,
networks, servers, storage, applications, and
services) that can be rapidly provisioned and
released with minimal management effort or service
provider interaction”
Source: NIST Definitionof CloudComputing; Special Publication800-145
4 Reasons to Go Cloud
1. Mobility
2. Costs
3. Security
4. Process
Cloud Mobility
Pick a cloud solution if:
• You use multiple devices
• You work in multiple locations
• Growing teams
• Leveraging other online services
Costs: Cloud Saves You Money
• Turn key solutions
• No long term contracts
• No hardware investment
Cloud solutions cut costs by 30% or more
Federal Labor Relation Authority
(FLRA) Case Management System
• 88% reduction in total cost of ownership over a five
year period
• Eliminated up-front licensing cost of $273,000
• Reduced annual maintenance from $77,000 to $16,800
• Eliminated all hardware acquisition costs
• Secure access from any Internet connection
• Ability to operate and access case information from any
location in the world, supporting the virtual enterprise
Source: Cloud.CIO.gov
Cloud Economies
Dedicated Security Team Greater Investment in
Security Infrastructure
Fault Tolerance and
Reliability
Greater Resiliency Hypervisor Protection
Against Network Attacks
Simplification of
Compliance Analysis
Data Held by Unbiased
Party
Low-Cost Disaster
Recovery and Data
Storage Solutions
On-Demand Security
Controls
Real-Time Detection of
System Tampering
Rapid Re-Constitution of
Services
Source: Cloud.CIO.gov
Cloud is Already in Law Firms
#ClioWeb
Source: SkyhighNetworks CloudAdoptionandRisk
Report 2016
Cloud Services in Legal
#ClioWeb
Dropbox 59.1%
Google Docs 37.8%
iCloud 32.2%
Evernote 18.3%
Clio 12.4%
Box 10.8%
NetDocuments 4.3%
Source: ABA2017 Legal Technology Survey
Cloud Apps in Legal
#ClioWeb
Westlaw 40.50%
Fastcase 40.50%
Lexis Advance 18.50%
Legal Dictionary App 18.00%
TrialPad 15.10%
TranscriptPad 8.30%
Courtlink 5.90%
LexisNexis Get Cases & Shepardize 5.90%
Clio* 4.40%
Source: ABA2017 Legal Technology Survey
Lawyers Use Unofficial Clouds
#ClioWeb
Source: SkyhighNetworks CloudAdoptionandRisk
Report 2016
Products as a Service
#ClioWeb
#ClioWeb
Commodification of Law
Bespoke Standardized Systemized Packaged Commoditized
#ClioWeb
Source: Tomorrow’s Lawyers, RichardSusskind
Embedded Legal Service Products
Bespoke
Standardized
Systemized
Packaged
#ClioWeb
Legal Services as a Product
Davis Wright Tremaine’s
DWT De Novo builds
efficient systems to
handle volume legal
work and helping make
the legal function more
strategic.
#ClioWeb
Building Legal Service Products
1. Discovering potential products by identifying
opportunities for automation;
2. Developing the products and enabling them to
process, analyze, and learn from data; and
3. Monetizing them by building a revenue model
that captures benefits from automation and the
application of analytics.
#ClioWeb
Cloud technologies enable
law firms to build agile products
#ClioWeb
#ClioWeb
Compliance is
Cost Savings
#ClioWeb
Cybersecurity Preparedness
in Mid-Size Law Firms
• 31% have no security awareness training
• 45% have no intrusion detection system
• 49% have no intrusion prevention system
• 79% have no data loss prevention
• 83% have no administration password management
• 98% have no 2-factor authentication for internal access
Source: ILTA 2017 Tech Survey
#ClioWeb
Cloud Compliance
(Comparatively) Cheap
AWS Coverage
• GDPR
• HIPAA
• IRS 1075
• ITAR
• EU-US Privacy Shield
• My Number Act [Japan]
• Privacy Act [Australia]
• PDPA - 2012
[Singapore]
• PIPEDA [Canada]
#ClioWeb
Competent Cloud is Compliance
#ClioWeb
Source: ILTA2017 Legal Technology Survey
Evaluating Cloud
Legal Technology
#ClioWeb
What’s the Catch?
#ClioWeb
Source: ILTA2017 Legal Technology Survey
Cloud Costs
Necessitate User Management
• Cloud users underestimate the amount of wasted cloud
spend. Respondents estimate 30 percent waste, while
RightScale has measured actual waste between 30 and 45
percent.
• Despite an increased focus on cloud cost management, only
a minority of companies are taking critical actions to
optimize cloud costs, such as shutting down unused
workloads or selecting lower-cost clouds or regions.
• Optimizing cloud costs is the top initiative across all cloud
users (53 percent) and especially among mature cloud users
(64 percent).
#ClioWeb
Source: Rightscale 2017 State of the CloudReport
Not All Cloud Providers Alike
#ClioWeb
Source: SkyhighNetworks CloudAdoptionandRisk
Report 2016
Cloud Ethics Opinions
Clio – Cloud-based
Practice Managment
#ClioWeb
#ClioWeb
American Bar Association’s 2016
Legal Technology Survey
What core functionality do you require in a practice and
financial management cloud computing solution?
1. Time and billing
2. Centralized case management
3. Scheduling/calendaring
4. Document management
5. Conflict Checking / Contact management
#ClioWeb
Mobile App (iPhone & Android)
Fixed Pricing in Clio
#ClioWeb
User Management in Clio
#ClioWeb
Clio’s Transparent Security
#ClioWeb
Clio is Reliable
#ClioWeb
Clio is Confidential
ToS §7.1
• If Themis is required by law to make any disclosure
of the Confidential Information that is prohibited or
otherwise constrained by this Agreement, then
Themis will provide Subscriber with prompt written
notice (to the extent permitted by law) prior to
such disclosure so that the Subscriber may seek a
protective order or other appropriate relief.
#ClioWeb
Clio is a member benefit offered by
66 state and local bar associations
Mental Challenges With
Cloud Adoption
• Moving from a commercial
model and mindset of “buying” a
piece of software to a “pay-as-
you-consume” business case
• Moving from a mindset of
“owning” data (on our premises
and servers), to place of being a
sovereign guardian over data.
• Moving from the idea of heavily
customizing “our” system to the
idea of configuring flexibly to
allow constant improvement and
upgrade
#ClioWeb
Conclusion
#ClioWeb
Conclusion
Law Firms are adopting cloud computing
to gain significant competitive
advantages in cost savings, mobility,
compliance & security, and product
offerings for clients.
#ClioWeb
Thank You
Joshua Lenon
joshua@clio.com
@JoshuaLenon
Linkedin.com/in/joshualenon
1-888-858-2546
Questions

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Why (& How) Mid-Sized Law Firms Are Adopting Cloud Computing

  • 1. Why Mid-Size Law Firms Adopt Cloud Computing
  • 2. Joshua Lenon • Lawyer in Residence at Clio • Attorney Admitted in New York • @JoshuaLenon #ClioWeb
  • 3. Agenda • Cloud Adoption • What is the Cloud? • Cloud Penetration in Law Firms • Compliance is Cost Savings • Products as a Service • Evaluating Cloud Legal Technology • Questions #ClioWeb
  • 6. 63% of law firms plan to increase cloud computing adoption in 2018. Why?
  • 7. NIST Cloud Definition “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” Source: NIST Definitionof CloudComputing; Special Publication800-145
  • 8. 4 Reasons to Go Cloud 1. Mobility 2. Costs 3. Security 4. Process
  • 9. Cloud Mobility Pick a cloud solution if: • You use multiple devices • You work in multiple locations • Growing teams • Leveraging other online services
  • 10. Costs: Cloud Saves You Money • Turn key solutions • No long term contracts • No hardware investment Cloud solutions cut costs by 30% or more
  • 11. Federal Labor Relation Authority (FLRA) Case Management System • 88% reduction in total cost of ownership over a five year period • Eliminated up-front licensing cost of $273,000 • Reduced annual maintenance from $77,000 to $16,800 • Eliminated all hardware acquisition costs • Secure access from any Internet connection • Ability to operate and access case information from any location in the world, supporting the virtual enterprise Source: Cloud.CIO.gov
  • 12. Cloud Economies Dedicated Security Team Greater Investment in Security Infrastructure Fault Tolerance and Reliability Greater Resiliency Hypervisor Protection Against Network Attacks Simplification of Compliance Analysis Data Held by Unbiased Party Low-Cost Disaster Recovery and Data Storage Solutions On-Demand Security Controls Real-Time Detection of System Tampering Rapid Re-Constitution of Services Source: Cloud.CIO.gov
  • 13. Cloud is Already in Law Firms #ClioWeb Source: SkyhighNetworks CloudAdoptionandRisk Report 2016
  • 14. Cloud Services in Legal #ClioWeb Dropbox 59.1% Google Docs 37.8% iCloud 32.2% Evernote 18.3% Clio 12.4% Box 10.8% NetDocuments 4.3% Source: ABA2017 Legal Technology Survey
  • 15. Cloud Apps in Legal #ClioWeb Westlaw 40.50% Fastcase 40.50% Lexis Advance 18.50% Legal Dictionary App 18.00% TrialPad 15.10% TranscriptPad 8.30% Courtlink 5.90% LexisNexis Get Cases & Shepardize 5.90% Clio* 4.40% Source: ABA2017 Legal Technology Survey
  • 16. Lawyers Use Unofficial Clouds #ClioWeb Source: SkyhighNetworks CloudAdoptionandRisk Report 2016
  • 17. Products as a Service #ClioWeb
  • 19. Commodification of Law Bespoke Standardized Systemized Packaged Commoditized #ClioWeb Source: Tomorrow’s Lawyers, RichardSusskind
  • 20. Embedded Legal Service Products Bespoke Standardized Systemized Packaged #ClioWeb
  • 21. Legal Services as a Product Davis Wright Tremaine’s DWT De Novo builds efficient systems to handle volume legal work and helping make the legal function more strategic. #ClioWeb
  • 22. Building Legal Service Products 1. Discovering potential products by identifying opportunities for automation; 2. Developing the products and enabling them to process, analyze, and learn from data; and 3. Monetizing them by building a revenue model that captures benefits from automation and the application of analytics. #ClioWeb
  • 23. Cloud technologies enable law firms to build agile products
  • 27.
  • 28. Cybersecurity Preparedness in Mid-Size Law Firms • 31% have no security awareness training • 45% have no intrusion detection system • 49% have no intrusion prevention system • 79% have no data loss prevention • 83% have no administration password management • 98% have no 2-factor authentication for internal access Source: ILTA 2017 Tech Survey
  • 30. Cloud Compliance (Comparatively) Cheap AWS Coverage • GDPR • HIPAA • IRS 1075 • ITAR • EU-US Privacy Shield • My Number Act [Japan] • Privacy Act [Australia] • PDPA - 2012 [Singapore] • PIPEDA [Canada] #ClioWeb
  • 31. Competent Cloud is Compliance #ClioWeb Source: ILTA2017 Legal Technology Survey
  • 33. What’s the Catch? #ClioWeb Source: ILTA2017 Legal Technology Survey
  • 34. Cloud Costs Necessitate User Management • Cloud users underestimate the amount of wasted cloud spend. Respondents estimate 30 percent waste, while RightScale has measured actual waste between 30 and 45 percent. • Despite an increased focus on cloud cost management, only a minority of companies are taking critical actions to optimize cloud costs, such as shutting down unused workloads or selecting lower-cost clouds or regions. • Optimizing cloud costs is the top initiative across all cloud users (53 percent) and especially among mature cloud users (64 percent). #ClioWeb Source: Rightscale 2017 State of the CloudReport
  • 35. Not All Cloud Providers Alike #ClioWeb Source: SkyhighNetworks CloudAdoptionandRisk Report 2016
  • 37. Clio – Cloud-based Practice Managment #ClioWeb
  • 39. American Bar Association’s 2016 Legal Technology Survey What core functionality do you require in a practice and financial management cloud computing solution? 1. Time and billing 2. Centralized case management 3. Scheduling/calendaring 4. Document management 5. Conflict Checking / Contact management #ClioWeb
  • 40. Mobile App (iPhone & Android)
  • 41. Fixed Pricing in Clio #ClioWeb
  • 42. User Management in Clio #ClioWeb
  • 45. Clio is Confidential ToS §7.1 • If Themis is required by law to make any disclosure of the Confidential Information that is prohibited or otherwise constrained by this Agreement, then Themis will provide Subscriber with prompt written notice (to the extent permitted by law) prior to such disclosure so that the Subscriber may seek a protective order or other appropriate relief. #ClioWeb
  • 46. Clio is a member benefit offered by 66 state and local bar associations
  • 47. Mental Challenges With Cloud Adoption • Moving from a commercial model and mindset of “buying” a piece of software to a “pay-as- you-consume” business case • Moving from a mindset of “owning” data (on our premises and servers), to place of being a sovereign guardian over data. • Moving from the idea of heavily customizing “our” system to the idea of configuring flexibly to allow constant improvement and upgrade #ClioWeb
  • 49. Conclusion Law Firms are adopting cloud computing to gain significant competitive advantages in cost savings, mobility, compliance & security, and product offerings for clients. #ClioWeb