Cloud Computing: The Impact on the Practice of Law

1. Cloud Computing:The Impact on the Practice of Law Presented by Christopher Anderson, JD Product Manager, LexisNexis Firm Manager™

2. Introduction - Christopher Anderson • Christopher Anderson • Product Manager for LexisNexis Firm Manager™ • Previous to LexisNexis: • Managing Partner of a full-service law firm in Georgia • Firm Practice Included Commercial and Residential Real Estate, Business Transactions, Government Representation, Employment, Litigation, and Corporate Law • Personal practice included Family Law and Business Litigation • Assistant District Attorney in New York City • Associate General Counsel and Director of Client Services for RealLegal (Law.com) • JD from the University of Georgia School of Law in 1994 • Graduate of Cornell University • Christopher Anderson is admitted to practice in the federal and state courts of New York and Georgia. • Firm Manager is a web-based practice management system that keeps attorneys and staff of small law firms connected to all the details of their clients, cases, matters and firm business. LexisNexis Firm Manager helps attorneys organize, secure, and have constant access to all the clients, documents, appointments, tasks, contacts, and matter information, anytime, anywhere.

3. Introductions - Audience • Hello! • Now you know me! • Who Are YOU?!? • Where do you practice? • Size of Firm? • Cloud Adoption? • Cloud Knowledge?

4. What we will discuss today: • What cloud computing is • What to look for in a cloud-based solution • Using the cloud to protect your clients’ data • Legal industry trends • How the cloud can change the way you practice law • Opinions & reactions from local & national bars

5. What is cloud computing? • (n.) A style of computing in which • Software • Storage • Processing Power • Other Computing Services • are provided over the internet and • usually accessed via web browser or mobile application.

6. Cloud Computing Features • Service turns on & off • No expertise needed • Automatic updates • Scalable • Defined and understandable costs • Backup • Offers guarantees • Governance

7. Two Worlds: BC & AC • After Cloud • Software as a Service (SaaS) • Platform as a Service (PaaS) • Infrastructure as a Service (IaaS) • Before Cloud • Application Service Providers (ASP) • Web Hosting Services • Managed Hosting Services

8. Cloud Computing Examples • Applications (SaaS) • Google Apps, Quickbooks Online, Microsoft Online/Office 365, LexisNexis FirmManager™ • Platforms(PaaS) – Environments in the cloud • Amazon, Microsoft Azure, App Engine, GreenQloud, AppScale, Cloud Foundry, Salesforce.com • Infrastructure(IaaS) – Computers in the cloud • Amazon, Cloud.com, Google Storage, GreenQloud, IBM SmartCloud, Carbonite • Technologies • Networking, Security, Datacenters, Internet, Web services

9. Popular Cloud Solutions for Lawyers Time, Billing and Invoicing • Bill4Time • Chrometa Electronic Signatures • RightSignature • DocuSign Case and Client Management • LexisNexis Firm Manager† • Clio • LawRD • Rocket Matter Document Management • DropBox • NetDocuments • Virtual Law Office Services • DirectLaw • Total Attorneys • Project Management • Basecamp • Onit • Online Document Storage and Backup • Mozy • Carbonite • Remote Access • GoToMyPC • Legal Workspace (IaaS) • Encrypted Email & Document Exchange • Sendgine™ • Rpost (PaaS)

10. Why might cloud computing be good for you? Vintage computers HARD DRIVE CRASHES NEW HIRES ENTITY CHANGE LACK OF I.T. SUPPORT NO ESTABLISHED OFFICE PROTOCOLS DISCIPLINARY ACTION VIRUSES NEW EQUIPMENT

11. What is the Cloud?

12. What we will discuss today: • What cloud computing is • What to look for in a cloud-based solution • Using the cloud to protect your clients’ data • Legal industry trends • How the cloud can change the way you practice law • Opinions & reactions from local & national bars

13. What should you Consider when Considering “Cloud” The product, offering or application should help you solve important problems or jobs. • But it requires due diligence on: • Data Protection • Data Ownership • Availability

14. 1. Data Protection “The only truly secure computer is the one unplugged from the wall and locked in a vault.” At bare minimum, vendors should provide “better-than-yours” data security. Ask them about: • Encryption type? • Environmental security? • Testing methods? • Real-time intrusion monitoring? • Third party certifications? • Internal controls?

15. Who to trust? U.S. Data Centers

16. 2. Data Ownership Above all, your confidential client data belongs to you. • Questions to ask: • What are your contract terms/conditions? • Policies on Government requests? • Data return procedures? • What happens when you cancel? • How are third parties vetted? • Use of my data internally? • Is any anonymized information used?

17. 2. Data Ownership Actual Terms and Conditions from (non-legal focused) Cloud Vendors… • BRAND X will have no responsibility for any harm to your computer system, loss or corruption of data, or other harm that results from your access to or use of the Services or Software • BRAND X: If you add a file to your [Brand X] that has been previously uploaded by you or another user, we may associate all or a portion of the previous file with your account rather than storing a duplicate • BRAND Y: When you upload … content to our Services, you give Brand Y (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works … communicate, publish, publicly perform, publicly display and distribute such content. • BRAND Y: Your domain administrator may be able to … access or retain information stored as part of your account [and]restrict your ability to delete or edit information… or privacy settings.

18. 3. Data Availability Bottom line: Your cloud provider should be there when you need them. • Questions to ask: • Uptime guarantees? • Financial penalties? • Number of data centers? • Testing? • Backups?

19. Other Considerations: Your Needs • Your budget • Trial periods • Total cost of ownership • Customer support & training options • Any additional fees • Data migration • Email integration • Reputable players

20. Other Considerations: Functionality • Practice Management Expectations • Global & Conflict of interest search • Access controls • Custom AOP tools • Mobility solutions

21. Conflict of Interest Search • Powerful Searching – Indexed across database and documents • Clear record of decisions made, by whom and when • Preservation of information as it was known on the day of the Conflict Check

22. Global Search

23. Practice Templates & Data Exporting

24. Native Apps vs. Web 2.02

25. Mobility Solutions • Cloud Based • No Management Costs • Consistent experience across all web-enabled devices • Optimized for your device • Beware synchronized data!

26. Considerations

27. What we will discuss today: • What cloud computing is • What to look for in a cloud-based solution • Using the cloud to protect your clients’ data • Legal industry trends • How the cloud can change the way you practice law • Opinions & reactions from local & national bars

28. Legal Industry Trends An A new kind of law firm is emerging. • Virtual offices and virtual staff • Outsourced work • Engages in online collaboration as an easier way to obtain and deliver information vs. email • Uses tablets and iPads • Embraces mobile apps • Device specific vs. Web-based app • Native application integration

29. Bar Ruling and Regulations “The American Bar Association is cautiously wading into the waters of cloud computing. An ABA ethics panel recently issued proposed rule changes to the Model Rules of Professional Conduct designed to assist attorneys in safeguarding confidential and sensitive client data while using remote internet servers to store, manage and process data.”–The Minnesota Lawyer • Minnesota • North Carolina ABA Ethics 2020 Commission

30. Bar Ruling and Regulations Question:    Is it ethical for lawyers to store and access confidential client data in the "cloud" using computers or mobile devices? • Florida • New York • Pennsylvania

31. Forecast: Clear Skies for Cloud Computing “It is ethical for lawyers to store client documents in the cloud and use cloud-based applications, provided the lawyers take reasonable safeguards to ensure the safety and security of the data.” – Bob Ambrogi, Catalyst • The ABA Commission on Ethics 20/20 published its recommendations on amending ethics rules regardin Client Confidentiality Issues Raised by New Technologies, and state bar associations came out with ethics opinions in favor of lawyers use of cloud computing. • The state bars of Pennsylvania, Iowa, North Carolina and, most recently, Oregon, joined the state bars of Arizona, New Jersey, Main and New York in issuing ethics opinions on lawyers use of cloud computing services. Bob Ambrogi put it best in his Catalyst post, “Two New Legal Ethics Opinions Suggest Clear Skies Ahead for Cloud Computing:”

32. Cloud Computing: The Impact on the Practice of Law

33. Cloud Computing: The Impact on the Practice of Law Contact information: Christopher Anderson, JD LexisNexis 2000 Regency Parkway, Suite 600 Cary, NC 27518 CA@myfirmmanager.com For a copy of this presentation, you may email above.