The ABA’s Legal Technology Resource Center has posted a great and comprehensive article about Software-as-a-Service and web based practice management for law firms. It is a great article for any firm considering a move to SaaS. They examine some of the factors that legal firms should consider when evaluating SaaS, and some specific questions to should ask SaaS vendors before signing up. I think it applies to almost to any company in any industry evaluating a SaaS solution.

Functionality/Usability

Much of the traditional legal software currently on the market has been under development for years, undergoing revision after revision as technology and attorney needs have changed. While this means that traditional legal software tends to have a wide range of features, it can also make for software that is incredibly complicated and less-than-intuitive for new users. Because SaaS solutions are new and have been built fresh from the ground-up, they tend to have fewer features but far better - and more intuitive - user interfaces. That said, the “newness” of SaaS also generally means that they lack the existing base of experienced users, consultants, and trainers that one might find with older, more traditional legal software.

When considering a SaaS solution, be sure to consider these questions/issues about functionality/usability:

• Does the vendor offer a free trial period or demo to test out the interface and functionality of the product?
• What training options are available for users of this product?
• How many companies are currently using this product?

Availability/Access

SaaS also has to the advantage of not being limited to a single installation as is often the case with traditional software. Thus, an attorney subscribing to a legal SaaS solution could use the web-based interface from his or her home, office, or any other location with internet access without having to purchase additional licenses for each computer. This can also be useful for business continuity purposes, as an attorney driven from their office by natural or manmade disaster can be back working as soon as a web-enabled computer is available.

That said, the “internet” component of SaaS software leads to a significant drawback: because the software exists purely online, an attorney who is without internet access for whatever reason cannot access his or her legal software.

Some questions/issues to consider with regard to availability/access:

• How often do I need to access my legal software outside of the office?
• Is the SaaS compatible with my preferred platform/device/web browser?
• Do I work in an area that’s prone to disaster or other business continuity threats?
• Do I have reliable access to the Internet from work? From home? On the road?
• Does the provider offer (or would it be willing to negotiate) a Service Level Agreement (SLA) that guarantees a certain level of service (e.g. uptime, accessibility, customer service response time, etc.)?
• Are any relevant guarantees or disclaimers of liability included in the provider’s Terms of Service (TOS)?

Ethics/Security Concerns

Some questions/issues to consider with regard to ethics/security:

• How does the vendor safeguard the privacy/confidentiality of stored data?
• How often is the user’s data backed up? Does the vendor backup data in multiple data centers in different geographic locations to safeguard against natural disaster?
• What is the history of the vendor? Where do they derive their funding? How stable are they financially?
• Can I get my data “off” their servers for my own offline use/backup? If I decide to cancel my subscription to the software, will I get my data? Is data supplied in a non-proprietary format that is compatible with other software?
• Does the vendor’s Terms of Service or Standard Level Agreement address confidentiality and security? If not, would the vendor be willing to sign a confidentiality agreement in keeping with your professional responsibilities?

Cost

Some cost questions/issues to consider:

• What are the monthly costs for the SaaS option, and are discounted rates available for non-lawyer employees like paralegals, legal assistants, and law clerks?
• Does the vendor require a contractual agreement to maintain service for a certain amount of time (e.g. 12 months, 24 months)?
• How does the cost of the SaaS solution over a two or three year period compare to the cost of a comparable traditional software license?
• What’s the pricing history of the SaaS solution? How often are monthly rates increased?
• Are there any incidental costs for the SaaS solution, like data backup or support?