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The IT Utility for Law Firms

By Tom Gelbmann
January 28, 2008

Over the past five years, the concept of an IT Utility for law firms has evolved from an interesting concept to an attractive business strategy. Growth of the IT Utility (off-premise IT services such as Co-location and Managed Services) is fueled by the confluence of increased interest by law firms in outsourcing routine administrative functions with rapidly maturing enabling technology such as security tools and services, affordable high bandwidth data communications, and management tools for large scale data centers. The IT Utility is part of a new model for managing technology infrastructure at law firms.

Here is a typical situation: The ABC law firm has enjoyed significant growth, adding attorneys and support staff. Office space is becoming a scarce commodity. Anticipated growth in the next year or so will put them over the edge and may mean relocation. Technology infrastructure has also expanded to keep up with firm growth. The data center now consumes nearly an entire floor of office space. To compound problems, power requirements for additional equipment in the data center will exceed the building's capacity and requires a significant upgrade to the building's electrical capacity. The firm now faces a decision to: 1) scale back expansion plans; 2) move to new offices, or 3) find a new home for the data center. Option # 3 has become very interesting.

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