Can Software Be a Service?

You're probably tired of hearing the phrase 'think outside the box,' but that's an accurate characterization of 'software-as-a-service' ('SaaS'). The 'box' is the computer that sits on your desk; and SaaS is an innovative way to deliver software applications to that computer over the Internet.

Most of us understand computers as appliances confined to their own world. Software applications are installed and launched on independent machines, each computer handles its own processing and storage tasks locally, and the Internet allows computers to communicate with each other.

Today, this tried-and-true model of computing is being transformed by the widespread availability of high-speed Internet access, additional functionality built into Web browsers and tremendous leaps in computing processing speeds. Today's average workers are more mobile, and they demand reliable access to their data and applications, regardless of where they are or what computer they're using.

For example, when you compose a memo to a client, you probably click on your Start menu and launch the copy of Microsoft Word that's installed on your computer. When you're done, you probably save the completed file in the 'My Documents' folder on the same computer.

But consider for a moment how you would compose that document if word-processing software wasn't installed on your computer. And what if your completed file lived on a Web server somewhere on the Internet, instead of your laptop or desktop? This is exactly what services like Google Docs (http://docs.google.com) and Zoho Writer (http://writer.zoho.com) provide. The idea of online storage is not as far-fetched today as it once was, but the assertion that an online application like Google Docs accessed through a Web browser could replace a locally installed word processor sounds absolutely wacky to many people.

'AsSaaSsinating' the Old Software Model

The basic idea of SaaS is not all that new. For those who have lived with
technology for many years, this might bring to mind old visions of so-called 'dumb' terminals that sat on desks linked to a mainframe computer. All the real work was done by the mainframe, and each terminal connected to the mainframe to access files and applications.

In the days of the 'dumb' terminal, the Internet was barely in its infancy. Today, every worker has a computer on his or her desk and owns more computers at home. The availability of high-speed Internet access is so rampant that it's becoming a shock to find someone who still connects via dial-up. Put all that together with the fact that Web browsers are getting more secure and more advanced, and you have the perfect ingredients for some well-rounded services to be presented over the Internet.

Some astute students of computing technology point out that software-as-a-service is just another incarnation of the application service provider ('ASP') model that has been popular for many years. The major difference, however, is that SaaS applications are designed from the ground up as Web-native software that is seamlessly delivered through a Web browser. ASPs, on the other hand, usually take software designed for typical installations and rig an HTML front-end or something similar to provide 'over the Internet' functionality. There is a blurry line between ASP and SaaS, but SaaS has certainly become the more accepted term in the age of Web 2.0.

'SaaSsy' Software with an Attitude

From a technical perspective, SaaS sounds exhilarating, but its success in the business world is tinged with doubt and distrust. This is even truer in the legal profession because, after all, we are entrusted with our clients' most important information, and we have an ethical responsibility to protect their confidentiality. Many would argue that the best way to preserve client confidentiality and attorney work product would be to keep as much control as possible over the data and the applications that are used to create that data. The very idea of allowing an outside party to store documents and provide software applications over the Internet is a very scary thought for many legal professionals.

To be fair, these fears are not entirely unfounded. The confidentiality of client information is a sacred tradition in the legal profession, and any time you bring a third party into the mix for storing or creating that information, it introduces some amount of risk. It is imperative that you can trust an SaaS provider, and safeguards must be built into the service agreement for uptime, access and ownership.

Many law firms are at least exploring the possibility of 'outsourcing' some of their traditional IT responsibilities, while a respectable number of firms have already completely embraced the concept. It would probably be difficult to find a law firm that has adopted Google Docs as a complete replacement for a Microsoft Office license, but some firms have openly adopted the SaaS model for data hosting, spam monitoring, practice management, litigation support and document management.

One example of a SaaS solution in the legal market is NetDocuments (www.netdocuments.com). NetDocuments has a very deep alliance with LexisNexis, which is further evidence of the reach of SaaS into the practice of law. Instead of installing and maintaining traditional document management platforms like those from Hummingbird (www.hummingbird.com) or Interwoven (www.interwoven.com), some law firms have chosen to pay a monthly fee to NetDocuments, which stores, manages, upgrades and supports the firms' document-management infrastructure.

Two other areas of a law practice that are enjoying some SaaS attention are practice management and litigation support.

Traditional practice management installations include PracticeMaster (www.practicemaster.com) and Amicus Attorney (www.amicusattorney.com). Both of these applications are sold as packages that require an install and setup. Two SaaS alternatives include Rocket Matter (www.rocketmatter.com) and Clio (www.goclio.com). Both of these services are fairly new and offer users access to practice-management information from any computer connected to the Internet, including scheduling calendars, time tracking and billing information.

On the litigation support side, many law firms have made a significant investment in applications like CT Summation (www.ctsummation.com) and Concordance (http://law.lexisnexis.com/concordance). These applications traditionally have 'client' pieces that sit on user computers, which then access the litigation documents sitting on a server over the firm's local area network ('LAN'). But SaaS services, like Lexbe (www.lexbe.com), ImageDepot (www.imagedepot.com) and Trial Manager (www.trialmanager.com), are giving firms the option of having someone else worry about software upgrades, document storage and converting relevant documents to TIFFs for production.

Weighing the Benefits

The biggest advantage of using an SaaS model is that it takes a lot of the burden off of the law firm in purchasing hardware, software or hiring experienced IT professionals. Obviously, this doesn't sound so appealing if you're an IT professional, but the use of an SaaS application frees up a firm's IT department to concentrate more on the practice of law rather than constantly complain about the speed of an outdated server, or worry about how much capital they should budget for next year's hardware upgrade.

A SaaS application delivered over the Internet frees a law firm from the cost of purchasing network servers and refreshing them every three or four years. Since all of the software from an SaaS provider is run from its central location, a law firm does not need to purchase applications, take the time to install them on individual machines and then pay an annual maintenance fee. A typical SaaS application is simply accessed through a Web browser and no other software is needed. SaaS vendors typically charge a monthly usage fee based on the amount of data stored or the number of users with access to the system.

Beyond the cost savings that many firms experience with an SaaS application, an extensive array of support options is available. Just about every SaaS vendor offers 24/7/365 technical support because they know that is a major concern of most law firms that can be easily overcome.

SaaS vendors have the enviable ability to customize and upgrade their software within a very short time period. At many law firms, upgrading a major piece of software requires a planned 'downtime' where everyone must stay off the system for hours or days at a time while the IT group performs the necessary upgrades. An SaaS vendor, on the other hand, can add a small feature here or there every few days since their application is being delivered from a central location.

Securing SaaS

Since security of client data is a prime concern with any law firm, SaaS providers have gone to great lengths to ensure their systems are safe ' both on the digital side as well as in the physical world.

While many law firms believe that their data is safer when it's located on the inside of their firewall, the truth is that their data is rarely encrypted for additional safety. That's not the case with many SaaS applications. When you send data over the Internet to be stored on a SaaS-owned server, that information is encrypted so that it's impossible to read unless you have the appropriate credentials. Reliable SaaS vendors should be ready to describe the physical security restrictions that they have in place where their servers are located.

So is the time right for SaaS to take over the legal world? Probably not quite yet. While some law firms obviously understand the benefits of having an SaaS provider take over many IT headaches, the majority of firms are more comfortable doing things the way they've always done things. Change is always a scary hurdle to overcome.

But technology waits for no law firm, and the advantages of SaaS-based software are certainly starting to grab the attention of those that are concerned with the bottom line. Recent studies by Gartner (see, 'InfoNow, Webroot are on SaaS wave: Software as a service catches on,' Greg Avery, Wichita Business Journal, March 21, 2008, http://tinyurl.com/5rw2nn) and McKinsey & Company (see, 'McKinsey surveys the new software landscape,' Nicholas Carr, Rough Type entry on April 29, 2008, http://tinyurl.com/6x63na) declare that SaaS applications are becoming more mainstream than ever, and predict that the SaaS offerings will grow significantly in the next three to five years.

It's understandable that many people are leery of the whole notion of having their critical software served up over the Internet, but perhaps those folks just aren't comfortable thinking outside the proverbial box.

You're probably tired of hearing the phrase 'think outside the box,' but that's an accurate characterization of 'software-as-a-service' ('SaaS'). The 'box' is the computer that sits on your desk; and SaaS is an innovative way to deliver software applications to that computer over the Internet.

Most of us understand computers as appliances confined to their own world. Software applications are installed and launched on independent machines, each computer handles its own processing and storage tasks locally, and the Internet allows computers to communicate with each other.

Today, this tried-and-true model of computing is being transformed by the widespread availability of high-speed Internet access, additional functionality built into Web browsers and tremendous leaps in computing processing speeds. Today's average workers are more mobile, and they demand reliable access to their data and applications, regardless of where they are or what computer they're using.

For example, when you compose a memo to a client, you probably click on your Start menu and launch the copy of Microsoft Word that's installed on your computer. When you're done, you probably save the completed file in the 'My Documents' folder on the same computer.

But consider for a moment how you would compose that document if word-processing software wasn't installed on your computer. And what if your completed file lived on a Web server somewhere on the Internet, instead of your laptop or desktop? This is exactly what services like Google Docs (http://docs.google.com) and Zoho Writer (http://writer.zoho.com) provide. The idea of online storage is not as far-fetched today as it once was, but the assertion that an online application like Google Docs accessed through a Web browser could replace a locally installed word processor sounds absolutely wacky to many people.

'AsSaaSsinating' the Old Software Model

The basic idea of SaaS is not all that new. For those who have lived with
technology for many years, this might bring to mind old visions of so-called 'dumb' terminals that sat on desks linked to a mainframe computer. All the real work was done by the mainframe, and each terminal connected to the mainframe to access files and applications.

In the days of the 'dumb' terminal, the Internet was barely in its infancy. Today, every worker has a computer on his or her desk and owns more computers at home. The availability of high-speed Internet access is so rampant that it's becoming a shock to find someone who still connects via dial-up. Put all that together with the fact that Web browsers are getting more secure and more advanced, and you have the perfect ingredients for some well-rounded services to be presented over the Internet.

Some astute students of computing technology point out that software-as-a-service is just another incarnation of the application service provider ('ASP') model that has been popular for many years. The major difference, however, is that SaaS applications are designed from the ground up as Web-native software that is seamlessly delivered through a Web browser. ASPs, on the other hand, usually take software designed for typical installations and rig an HTML front-end or something similar to provide 'over the Internet' functionality. There is a blurry line between ASP and SaaS, but SaaS has certainly become the more accepted term in the age of Web 2.0.

'SaaSsy' Software with an Attitude

From a technical perspective, SaaS sounds exhilarating, but its success in the business world is tinged with doubt and distrust. This is even truer in the legal profession because, after all, we are entrusted with our clients' most important information, and we have an ethical responsibility to protect their confidentiality. Many would argue that the best way to preserve client confidentiality and attorney work product would be to keep as much control as possible over the data and the applications that are used to create that data. The very idea of allowing an outside party to store documents and provide software applications over the Internet is a very scary thought for many legal professionals.

To be fair, these fears are not entirely unfounded. The confidentiality of client information is a sacred tradition in the legal profession, and any time you bring a third party into the mix for storing or creating that information, it introduces some amount of risk. It is imperative that you can trust an SaaS provider, and safeguards must be built into the service agreement for uptime, access and ownership.

Many law firms are at least exploring the possibility of 'outsourcing' some of their traditional IT responsibilities, while a respectable number of firms have already completely embraced the concept. It would probably be difficult to find a law firm that has adopted Google Docs as a complete replacement for a Microsoft Office license, but some firms have openly adopted the SaaS model for data hosting, spam monitoring, practice management, litigation support and document management.

One example of a SaaS solution in the legal market is NetDocuments (www.netdocuments.com). NetDocuments has a very deep alliance with LexisNexis, which is further evidence of the reach of SaaS into the practice of law. Instead of installing and maintaining traditional document management platforms like those from Hummingbird (www.hummingbird.com) or Interwoven (www.interwoven.com), some law firms have chosen to pay a monthly fee to NetDocuments, which stores, manages, upgrades and supports the firms' document-management infrastructure.

Two other areas of a law practice that are enjoying some SaaS attention are practice management and litigation support.

Traditional practice management installations include PracticeMaster (www.practicemaster.com) and Amicus Attorney (www.amicusattorney.com). Both of these applications are sold as packages that require an install and setup. Two SaaS alternatives include Rocket Matter (www.rocketmatter.com) and Clio (www.goclio.com). Both of these services are fairly new and offer users access to practice-management information from any computer connected to the Internet, including scheduling calendars, time tracking and billing information.

On the litigation support side, many law firms have made a significant investment in applications like CT Summation (www.ctsummation.com) and Concordance (http://law.lexisnexis.com/concordance). These applications traditionally have 'client' pieces that sit on user computers, which then access the litigation documents sitting on a server over the firm's local area network ('LAN'). But SaaS services, like Lexbe (www.lexbe.com), ImageDepot (www.imagedepot.com) and Trial Manager (www.trialmanager.com), are giving firms the option of having someone else worry about software upgrades, document storage and converting relevant documents to TIFFs for production.

Weighing the Benefits

The biggest advantage of using an SaaS model is that it takes a lot of the burden off of the law firm in purchasing hardware, software or hiring experienced IT professionals. Obviously, this doesn't sound so appealing if you're an IT professional, but the use of an SaaS application frees up a firm's IT department to concentrate more on the practice of law rather than constantly complain about the speed of an outdated server, or worry about how much capital they should budget for next year's hardware upgrade.

A SaaS application delivered over the Internet frees a law firm from the cost of purchasing network servers and refreshing them every three or four years. Since all of the software from an SaaS provider is run from its central location, a law firm does not need to purchase applications, take the time to install them on individual machines and then pay an annual maintenance fee. A typical SaaS application is simply accessed through a Web browser and no other software is needed. SaaS vendors typically charge a monthly usage fee based on the amount of data stored or the number of users with access to the system.

Beyond the cost savings that many firms experience with an SaaS application, an extensive array of support options is available. Just about every SaaS vendor offers 24/7/365 technical support because they know that is a major concern of most law firms that can be easily overcome.

SaaS vendors have the enviable ability to customize and upgrade their software within a very short time period. At many law firms, upgrading a major piece of software requires a planned 'downtime' where everyone must stay off the system for hours or days at a time while the IT group performs the necessary upgrades. An SaaS vendor, on the other hand, can add a small feature here or there every few days since their application is being delivered from a central location.

Securing SaaS

Since security of client data is a prime concern with any law firm, SaaS providers have gone to great lengths to ensure their systems are safe ' both on the digital side as well as in the physical world.

While many law firms believe that their data is safer when it's located on the inside of their firewall, the truth is that their data is rarely encrypted for additional safety. That's not the case with many SaaS applications. When you send data over the Internet to be stored on a SaaS-owned server, that information is encrypted so that it's impossible to read unless you have the appropriate credentials. Reliable SaaS vendors should be ready to describe the physical security restrictions that they have in place where their servers are located.

So is the time right for SaaS to take over the legal world? Probably not quite yet. While some law firms obviously understand the benefits of having an SaaS provider take over many IT headaches, the majority of firms are more comfortable doing things the way they've always done things. Change is always a scary hurdle to overcome.

But technology waits for no law firm, and the advantages of SaaS-based software are certainly starting to grab the attention of those that are concerned with the bottom line. Recent studies by Gartner (see, 'InfoNow, Webroot are on SaaS wave: Software as a service catches on,' Greg Avery, Wichita Business Journal, March 21, 2008, http://tinyurl.com/5rw2nn) and McKinsey & Company (see, 'McKinsey surveys the new software landscape,' Nicholas Carr, Rough Type entry on April 29, 2008, http://tinyurl.com/6x63na) declare that SaaS applications are becoming more mainstream than ever, and predict that the SaaS offerings will grow significantly in the next three to five years.

It's understandable that many people are leery of the whole notion of having their critical software served up over the Internet, but perhaps those folks just aren't comfortable thinking outside the proverbial box.