cloud Archives - The National Law Forum

Any law firm that’s evaluating practice management software has seen “cloud-based” options. Cloud technology has been around for a while, but some law firms are hesitant to switch to the cloud due to security concerns, lack of control, or downtime. The cloud has numerous benefits for a law firm, however. Instead of relying on filing cabinets and in-office servers, law firms can embrace the cloud and maximize their time and profits.

Why Should My Firm Use Cloud-Based Software?

Traditionally, law firms have relied on in-office software that is installed on a local computer or server within the office space. These servers are only accessible from computers in the same space but limit any remote access or capability. This setup quickly became an issue for law firms looking to sustain business continuity during the pandemic.

A cloud-based solution isn’t installed locally on the office server but is fully hosted on the internet. It uses a remote server maintained by the software provider, and access occurs through the internet. More recently, cloud-based legal practice management software has become the gold standard for law firms to manage and operate their business from anywhere. LPMs have slowly started to replace traditional servers and become the backbone for law firms to handle client management, calendaring, tasks, billing, and document storage.

Even post-pandemic, law firms are still learning to embrace legal technology and leverage the advantages of shifting their practice to the cloud. When done correctly and with the right resources, cloud-based law firms can improve aspects of their business from accessibility, security, client support, and even hiring and retention.

If you’re still on the fence about moving your firm to the cloud, here are 5 benefits that may change your mind:

1. Improved Security

Legal technology has come a long way in recent years with a strong emphasis on compliance and security. Law firms may be concerned about security, but some are realizing the cloud is more secure and cost-efficient than an on-premise solution. This is mostly because on-premise solutions typically require specialized support staff to perform lucrative updates to the system. These updates can cause severe downtime and even cost money calling in support.

With a cloud-based legal practice management software like PracticePanther, the all-in-one platform automatically updates and comes with the security and support your firm needs. The platform comes equipped with ABA and IOLTA compliant features and 256-bit military-grade encryption to ensure confidential information is safeguarded. It also offers two-factor authentication and customized security settings, which allow law firms to limit access to certain aspects of the software for some staff members.

2. Supports Remote and Hybrid Work

Though many law firms are still working out the kinks — remote and hybrid working environments are a mainstay in the legal industry. Many lawyers are enjoying the productivity benefits and work-life balance of remote or hybrid schedules, allowing them to put in the hours they need for casework while also balancing their responsibilities at home.

On-premise legal software limits lawyers with remote work in many ways. Cloud-based legal software enables law firms to work securely within a centralized platform from anywhere. This allows staff to continue their responsibilities without risking accessibility or tasks falling through the cracks when staff are in different locations. For example, PracticePanther can create workflows with triggered tasks for staff to complete a new client onboarding, send documents for electronic signature, and even process payments. This process can be done from anywhere and lives in one system where the appropriate staff can easily access the case or client matter.

3. Streamlined Billing and Online Payments

Clients’ expectations have shifted and they want more convenient processes, especially with legal billing and how they conduct business with law firms. These clients are already using online services for virtually everything, from grocery shopping to accessing medical bills, and they want the same digital experience from their lawyers.

Cloud-based software makes this simple, especially when billing and online payments are built natively. This means firms can track time, create invoices, and send them for payment with easy-to-use payment links embedded. Platforms like PracticePanther also include exclusive reporting functions so firms can gain better insight into where and how their cash flow is generated to make more informed business decisions.

Outlook on Cloud-Based Firms

Cloud-based software offers law firms a unique opportunity to manage their practice and staff while growing their business from virtually anywhere. This structure has proved sustainable for many law firms and will continue to be the standard in the legal industry for firms that want to remain competitive and most importantly, profitable.

Article By Nina Lee of PracticePanther

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The business community’s growing use of cloud-based computing services provides great benefits due to cost-savings and mobile information access. However, business leaders should understand the risks of storing valuable trade secrets in the cloud. This article provides the business community tips on how to safeguard valuable trade secrets stored in the cloud from being freely disclosed to the public, thus putting the business at risk of losing protections that courts grant trade secrets.

As businesses’ profit margins have continued to shrink since the Great Recession, more companies have looked to reduce costs by reducing growing expenses related to their information technology departments.^[1]The first line item to draw attention in the IT budget is frequently the rising costs associated with maintaining and upgrading system hardware. Businesses often find that housing and operating multiple servers stretches IT budgets thin by increasing maintenance, labor, and operational costs. The solution so many businesses have turned to is to move their valuable data to virtual servers, or the “cloud.”^[2] A recent survey of IT executives provides that companies will triple their IT spending on cloud-based services in 2014 over 2011.^[3] Cloud service providers have also seen demand increase as they increase their cloud capabilities.^[4]

Although cloud-based servers provide businesses with substantial financial and operational benefits, businesses must recognize that there are perils to shifting data to the cloud. One of the key concerns businesses should consider before moving data to the cloud is the risk that its valuable trade secrets will lose protection as a result of insufficient safeguards to protect against disclosure. This article addresses that concern and provides businesses keys for seeking to protect valuable secrets in the cloud.

What is a Protectable Trade Secret

The initial step for a business to determine how to protect its trade secrets is to understand how the law characterizes a trade secret. Information qualifies as a trade secret only if it derives independent economic value as a result of not being generally known or readily ascertainable, and be subject to reasonable efforts to maintain its secrecy. Trade secrets are broadly defined as information, including technical or non-technical data, a formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, strategies, pricing information, and lists of customers, prospective customers, and suppliers.

Businesses Need to Take Reasonable Efforts to Protect Trade Secrets in the Cloud

Trade secrets are only protectable when the owner takes reasonable efforts to prevent them from being freely disclosed to the public so that the information does not become generally known.

Information does not have to be cloaked in absolute secrecy to be a trade secret, as long as a business’s efforts to maintain secrecy or confidentiality are reasonable. It is easy for one to imagine how a business may protect confidential documents that are stored locally. Computer files may be password-protected with several layers of encryption software, with access limited to specified personnel. Similarly, paper files may be stored in locked cabinets, in secured rooms, where only specified personnel are granted access.

However, those seemingly straight-forward security protocols become murky when information is stored in the cloud. Unlike storing data on local servers, storing data in the cloud requires the owner to disclose confidential information to a third-party vendor. In most situations, disclosing data to a third-party eliminates trade secret protections. Therefore, businesses must take additional steps to ensure that its data remains secure.

Three Keys to Protecting Trade Secrets Stored in the Cloud

There are no fail-safe measures to protect data stored in the cloud. The best way for a business to protect its trade secrets is to locally store and protect its most valuable data with the proper data security protocols. A business, however, should not fear the cloud as long as it takes certain steps to ensure that it exercises reasonable efforts to protect its cloud-based data.

First, business leaders must conduct appropriate due diligence before selecting a cloud-provider. The business should conduct necessary research to select a reputable, well-established company that has the physical and technological capabilities to store and protect data.

Conducting due diligence on a provider includes ensuring that the provider has taken necessary steps to establish appropriate physical and virtual security protocols to protect the confidentiality of your information. Inquire how the provider establishes physical security measures, and monitoring capabilities to prevent unauthorized access to its data centers and infrastructure. Also, learn how the provider limits its employees’ access to customer data and determine the internal controls that the provider has in place to prevent unauthorized viewing, copying, or emailing of customer information.

A business should also inquire about the provider’s virtual security protocols. A business must generally understand how its cloud-provider’s encryption software and security management systems work to protect data. If your business is not capable of independently evaluating whether the provider has proper security protocols, a good indicator is to ask the provider for its client list. If the provider has clients that are typically security-conscious companies, such as financial institutions or healthcare facilities, that is a good indication that the provider has been vetted and it has proper security measures in place. Finally, the provider should maintain sufficient data-protection insurance coverage to protect against potential data breaches or system failures.

Second, a business must have contractual safeguards in place with its cloud-provider to adequately protect its intellectual property and trade secrets. The contract should establish that the business owns the data, that it will be segregated from other data groups, and that the business may enjoy unfettered access to the data. The contract should specify that the business can demand that the data be deleted or returned request, and detail how the provider will purge the data to ensure that it is properly deleted upon termination of the relationship. The contract should require regular data backup and recovery tests, while restricting the provider from accessing, using or copying data for its own purpose. Finally, the contract should establish the provider’s obligations to notify the business of a data breach or system failure.

Third, a business should also consider adding multiple layers of authentication and encryption to data containing trade secrets before transmitting it to the cloud-provider. However, a business should consider if the additional encryption efforts could adversely affect the business’s ability to access, utilize, and port data for its normal business use.

Conclusion

There are several financial and operational benefits for a business to store data in the cloud. However, businesses must understand that there are also risks to storing its valuable trade secrets on virtual servers. Businesses need to take reasonable efforts to protect the confidentiality and secrecy of its most valuable data and information.

_{[1] Dave Rosenberg. Reducing IT Infrastructure Costs via Outsourcing. May 7, 2009. news.cnet.com/8301-13846_3-10235742-62.html}

_{[2] Thor Olavsrud. How Cloud Computing Helps Cut Costs, Boost Profits. March 12, 2013. www.cio.com/article/730036/How_Cloud_Computing_Helps_Cut_Costs_Boost_Profits}

_{[3] Andrew Horne. Transformational Change in IT Will Drive 2014 Spending. November 5, 2013. http://blogs.wsj.com/cio/2013/11/05/transformational-change-in-it-will-drive-2014-spending/}

_{[4] IBM Commits $1.2bn to Cloud Data Centre Expansion. January 17, 2014. www.bbc.co.uk/news/business-25773266}