Law firms can — and do — use the cloud extensively, mainly through legal practice management software. According to the American Bar Association, nearly three-quarters of law firms are “planning to upgrade to a new cloud-based system” for operations purposes, from emails to document management tools and even time tracking systems.
Cloud-based legal practice management software provides the security, efficiency, and connectivity firms need to thrive in their practice — with much less effort required from the firm. As Forbes put it in a recent article, legal software providers can “do the IT heavy lifting while reducing the cost and technical requirements for data and application security.” The pros of cloud computing software are especially relevant for small to midsize firms, which don’t have as many staff or as much capital to invest as larger firms.
If your firm is looking into cloud technology but is still on the fence about using it, we’re here to help you make that choice. Read on as we explain the basics of cloud-based software, why it’s worth considering for your practice, and why PracticePanther should be your first choice for a cloud-based practice management solution.
How Do Law Firms Use the Cloud?
Cloud technology plays an increasingly significant role in law firms today. The shift toward cloud-based software is not just good for business success but also for improving your operations. For the legal industry, cloud computing tech has…
- …made it easier to scale operations. With less hardware and on-premise technology, growing your business requires much less up-front investment in new devices.
- …drastically improved cybersecurity. Safeguarding your firm and your clients’ data is the foundation of a good practice. With cloud storage providers that enforce multiple layers of protection, it’s much easier to prevent data breaches.
- …offloaded IT work for attorneys. With cloud technology, firms no longer need to own — or even operate — the technology they use. Rather than spending time updating software, installing security patches, and troubleshooting, your cloud service provider does all that work for you.
- …increased workplace accessibility. Sometimes, you might spend most of your work day outside the office — in courtrooms, client meetings, and so on — which means little to no access to on-premise tech. Cloud software lets you do tasks normally confined to the office, such as tracking billable hours or accessing client documents. Additionally, the rise in demand for remote and hybrid setups creates another opportunity for firms to attract talent, and with cloud technology, it’s much easier to accommodate flexible working conditions.
There are definitely significant benefits to using this technology. But what are the risks of using cloud computing to be aware of? Let’s take a look below.
What Are the Major Issues in Cloud Computing to Look Out For?
Like any technology, cloud computing does come with risks that all lawyers have a professional responsibility to mitigate and be aware of — but most of those risks are easily accounted for with careful planning. The primary things to pay attention to with cloud computing are data ownership, maintaining compliance, and provider reliability. Let’s take a closer look at each of these risks.
Data Ownership
When looking for a cloud service provider, make sure the terms of data ownership are clearly outlined in user agreements — that is, know who has access to the data and for what reasons they can procure access. While much of this risk is mitigated by choosing reputable providers, you still must do your due diligence. Most states in the U.S. have issued ethics opinions on cloud computing, which you can reference for guidance.
Maintaining Compliance
The American Bar Association addressed cloud technology and confidentiality in their Formal Opinion 477R, which covers things like data ownership, cybersecurity, and continuing education on new technologies. Handling compliance issues for cloud computing hinges on your understanding of technology: making sure you keep informed on the latest advances, compromises, and safeguards needed to protect your firm’s data.
To quote the ABA in said opinion, “some information is so sensitive that a lawyer might consider using particularly strong protective measures depending on the sensitivity of the information” — whether that’s extra encryption, added layers of security, or minimizing who has access to your firm’s data.
Provider Reliability
A different ABA article on the ethics of cloud computing outlines several key principles firms should apply when choosing a provider, such as understanding who has access to your data, whether their servers have multiple levels of encryption, and the provider’s liability restrictions.
They also emphasize shopping around before deciding and not letting price be the reason you do or don’t choose a provider. To quote the article directly, “Cost is not, and should not be, the determining factor. Especially in the world of cybersecurity, you get what you pay for.” That could mean investing in a high-quality service provider, or spending little-to-no money and paying a much steeper cost in the future.
As a last note, education is always a good idea when it comes to cloud technology. Look for a cloud computing for lawyers certification (CLE) to learn more about the detailed ins and outs of how this technology works. Although cloud technology is highly secure and a big improvement for protecting data, the more informed you are about it, the more comfortable you’ll be making the choosing cloud providers — and the more comfortable your clients will be knowing their information is safe.
What Should You Look for in Data Security in Cloud Computing?
When choosing a cloud provider for your law firm, data security should be at the top of your checklist. Below are some critical elements to prioritize:
- Military-Grade Encryption: Look for providers that use 256-bit encryption. Having a level of encryption like this makes it nearly impossible for unauthorized users to intercept or access your data, whether it’s being stored or transmitted.
- Geo-Redundant Servers: Providers with servers in multiple locations can ensure your data is backed up and accessible even during unexpected events, such as natural disasters or technical outages.
- Role-Based Access Controls: Assign specific access levels to each employee based on their role within the firm. For example, paralegals might have access to case files but not billing information, while partners might have broader access.
- Two-Factor Authentication: Adding this extra security step ensures that even if passwords are compromised, unauthorized users still cannot log in without a second verification method, like a code sent to your phone.
- Version History Logs: A detailed history of changes to documents and data can help you track who made modifications and when, especially when you have people working remotely from different locations.
- IP Address Permissions: It’s helpful to be able to restrict access to your firm’s data based on location. With this feature, you can specify which devices or networks can access sensitive information, reducing the risk of unauthorized logins.
- HIPAA and PCI Compliance: Providers that meet these standards show they understand the specific needs of law firms. Whether you’re managing client data or processing payments, compliance with these regulations is a must.
The best cloud computing providers should offer all of these advanced security features. For example, PracticePanther has all of these security measures and numerous other features to make your practice management easier and more secure.
Upgrade Your Practice With PracticePanther
PracticePanther is the top, all-in-one legal practice management software for several reasons. In addition to our focus on protecting client data, we prioritize creating easy-to-use software that supports every part of managing your firm’s caseload — from intake to payment — to make your job a lot easier.
Rather than tracking billable hours on a spreadsheet, wondering where your client folders are, or being stuck in the office late to catch up on admin work, PracticePanther gives you a convenient, secure way to access everything you need, no matter where you are.
See why cloud technology is the bright, shining future for the practice of law — and why PracticePanther is the north star! Sign up for a free demo by clicking the button below, and we’ll be happy to show you around and answer any questions you may have.
