Is there a silver lining to cloud computing for law firms?

A fortnight ago, Google launched the cloud storage system Google Drive, which allows Google users to store their photographs, documents and anything else they choose on its servers, giving immediate access to this data from any internet-connected device. Some say Google is arriving late at the cloud computing party, as Microsoft and Apple launched similar services a while ago, not to mention the widely-used Dropbox service. 

Of course, these services are primarily aimed at consumers, but already some businesses are storing data in the cloud. I wonder how long will it be before professional services firms start to make full use of these services, rather than storing their data in-house.

For those that are not familiar with the terminology, let me explain further. The cloud is a term which has, in the past few years, been adopted for technology that is hosted on the internet, in a remote data centre. Traditional business applications can be complex and expensive to install and manage, so for start-ups or companies that do not wish to invest huge sums into costly IT infrastructure, the cloud is a simple and cost-effective option.

One of the most common forms of cloud computing is software as a service (SaaS), a software on-demand model where a user can log into a pre-configured and managed IT system from his desk via a web browser.

Traditionally, law firms are risk-averse, wanting to store their data locally in a server they can physically see and touch, in a room onsite. The risk of losing data stored elsewhere is perceived to be too great, with concerns around the Data Protection Act, security of client data and a general perception of losing control. But these issues can be addressed with a tightly-worded contract and agreements on where and how the data is stored.

How many lawyers are aware that their data may already be offsite, stored in the cloud? Many firms have a degree of cloud computing in place. In a large number of cases, this involves the archiving, often for risk or compliance reasons, of emails to the cloud through their email gateway provider.

Arguably, this constitutes most – if not all – of their data, considering the volume of documents that are now exchanged via email. Also, many firms have hosted cloud-based deal rooms or extranets, again storing key client information.

Taking this a step further, we are now starting to see firms move towards SaaS document management and practice management systems. These are IT systems that are available immediately online, with little or no configuration, saving potentially months of expensive implementation and customisation consultancy.

Of course, these systems are currently aimed at firms of a certain size, but this represents a significant market and, unsurprisingly, the mid-market has been targeted by numerous cloud service providers.

In larger firms, we are seeing a move towards outsourcing either elements or large parts of the core IT infrastructure to cloud suppliers. But I believe a convergence will happen and, while it may take a few years, a gradual move to cloud-based IT systems and infrastructure is likely and the risks are not as great as first thought.