Cloud computing is one of several modern tech advancements, but its importance took off with the onset of COVID-19. Before the pandemic, most law firms relied heavily on on-site legal practice management software and systems for their daily operations. As the pandemic unfolded, solutions for legal practice management in the cloud kept many firms afloat through the worst times of the pandemic.

However, what started as a temporary change quickly became the future for legal professionals. The American Bar Association (ABA) has commented on the ubiquity of cloud-based practice management software for law firms — and, more importantly, why it’s sticking around:

“Natural disasters keep reminding us of the disaster recovery benefits of being in the cloud, cybersecurity risks highlight security benefits, and the uncertain economy emphasizes the benefits of cloud subscriptions over large capital spending on technology.”

As many firms learned during the pandemic, cloud-based platforms were an upgrade to the practice of law. More than that, they created an affordable way for small-to-midsize firms to run competitive, high-functioning practices like never before.

Rather than just praise cloud technology, let’s back up that praise with clear-cut, objective data. We’ll go over what cloud-based law firm software does, how it supports each part of your workload, and why cloud software like PracticePanther is setting new standards in the legal field today.

What Is Cloud-Based Legal Practice Management Software

Do Law Firms Use the Cloud?

A significant number of law firms — about 80% according to ILTA’s 2023 Technology Survey — now rely on cloud technology in some form. Not only do law firms use cloud technology, but the industry has been trending toward needing technology like cloud computing far before the COVID-19 pandemic. 

Why is this the case, though? There are a few critical reasons, all of which are highlighted by the American Bar Association across several formal opinions:

Law firms today need more cybersecurity than ever before. 

In the ABA’s 2017 Formal Opinion 477R, they stressed the need for stronger protection of client information as cyber threats grow more complex. While email was once considered secure enough for client communication, the ABA now urges lawyers to evaluate the security of each communication method based on the sensitivity of the information. This could mean using encryption, secure networks, or even avoiding email entirely for highly sensitive topics.

Cloud technology strengthens security efforts in several important ways. By moving data to the cloud, law firms can access advanced, regularly updated security measures that often go beyond what in-house systems provide. Additionally, features in cloud-based platforms like an attorney-client portal offer an additional solution for secure communication.

Client data security must be a top priority when using software.

Nearly 30 years ago, the ABA published a formal opinion on the ethics of working with software providers to store and manage client data. In their opening words, “A lawyer who gives a computer maintenance company access to information in client files must make reasonable efforts to ensure that the company has in place, or will establish, reasonable procedures to protect the confidentiality of client information.” 

Much of what they discuss centers on how firms relate to their software providers — namely, an agreement to keep client information safe and secure. These sorts of boundaries are the same principles that form the bedrock for cloud computing technology today.

The demanding nature of attorney work requires firms to be organized, expedient, and communicative — three goals that are challenging to perform in tandem. Cloud technology helps bridge that gap for all firms, but most especially small-to-midsize firms that lack the resources and headcount of large organizations. 

To quote a recent TechReport from the ABA, “cloud computing allows for fast and efficient recovery and business continuity should a disaster strike… cloud-based systems also eliminate the need for expensive hardware investments or maintenance costs associated with traditional on-premises solutions.”

With cybersecurity, efficiency, and accessibility covered, law firms are embracing cloud-based legal practice management software to elevate client service and case management. Here’s how this software works and what sets it apart.

Cloud-based technology is any number of computing services delivered via the internet, such as data storage, project management, client communications, and so on. For law firms specifically, this takes the form of legal practice management software (LPMS). The best cloud-based legal practice management software supports each step of a case’s life cycle (from client intake to payment processing), all while providing better accessibility to client information and improved client communication.

The main difference between cloud-based software and traditional on-premise software is where the software resides. On-premise software is installed directly on a firm’s local computers or servers, requiring in-house maintenance and physical access. In contrast, cloud-based software is hosted on remote servers and accessed online, typically through a web browser or mobile app.

What Is Cloud-Based Legal Practice Management Software

What Are the Main Features of Cloud-Based Law Firm Management Software?

Some of the most common features of cloud-based law firm management software include:

  • Case Management | Keeping an entire caseload organized is not only stressful but also challenging. A quality LPMS will make many of those processes easier for you — most notably, allowing you to assign, prioritize, and monitor to-do items, which keeps you and your team on track.
  • Legal Billing | If your practice finds itself stuck with unpaid invoices more frequently than not, it probably will benefit greatly from LPMS. LPMS makes the billing process simpler and more convenient — for both you and the client — with invoicing features, automated follow-up emails on payments due, and sometimes even native payment processing.
  • eSignature Software | Document signing is much easier and quicker with a digital option, which is why you want an LPMS with eSignature capabilities. Look for eSignature functionality that allows you to cancel and resend eSignature requests, just in case you catch a typo a little too late.
  • Calendar Tracking | Intake consultations, court dates, appointments, deadlines — the list of important dates goes on and on for attorneys. But rather than relying on physical calendars and a steel-trap memory, the best LPMS will help you schedule reminders and sync custom court rule dates to your calendar and workflows.
  • Added Security |  Law firms know the importance of keeping information safe, whether it’s their own data or their clients’. Cloud technology adds multiple layers of security to help protect and preserve important information (some of which we’ll discuss later).

What Are the Benefits of Cloud-Based Law Office Management Software?

Cloud-based law practice management software offers a lot of benefits to your practice, most of which come back to convenience, communications, and cost. Here are some key benefits to know:

  • Higher Accessibility | With cloud-based software, you have the ability to access your caseload anywhere, at any time (especially with mobile-friendly legal software).
  • Less Troubleshooting | If you’re concerned about IT-related hangups, cloud software will put an end to your troubles. The best providers will handle any updates, backups, or maintenance-related tasks for the software, so you don’t have to.
  • Automatic Updates | One of the biggest benefits of using cloud-based software is that it’s much easier to keep your software current. Rather than worrying about installing new versions of the software every time there is an update, you can rest assured knowing that the software you have access to is always the latest version.
  • Predictable Pricing | Okay, this might actually be the biggest benefit to cloud-based software: its affordability. We often think better technology means a bigger price tag, but part of what makes cloud technology so useful is that it’s much cheaper due to less hardware, lower overhead costs, and much lower maintenance costs. The best providers offer clear, concise pricing models that scale to your needs and budget. And speaking of scaling…
  • Scalable Setup | Due to reduced hardware and digital infrastructure, cloud software is much easier to scale up to match a business’s growth and size. A small firm of a few attorneys can use the same high-quality software as big firms, but at a scale that best suits their practice. It’s a one-size-fits-all solution because that “one size” is always your size.

Yes! Not only are they secure, but one of the biggest selling points of cloud-based software is the added security it provides. Some software even lets you customize security settings to better fit your workflow. A few common security measures you can expect include:

And as highlighted in a recent systematic literature review on cloud computing, the security benefits of cloud computing extend beyond standard measures. Notably, the collaborative “shared responsibility” model in cloud computing means that while providers handle the core infrastructure security, users gain control over their data access and privacy settings. Pairing this setup with regular security training for staff builds a strong defense for safeguarding sensitive information.

What Is an Example of Cloud-Based Software for Law Firms?

There are a few different cloud-based law firm software options out there, but all of them carry slight differences from one another. Below, we’ve outlined some of the most common software choices and a brief overview of what they each provide to help with your browsing. As you search for the right software, keep in mind the following questions:

  • Will I have to pay for multiple integrations to get the functionality I need, or is everything my firm needs included?
  • What kind of support does the provider offer to its customers (and how much support)?
  • How does this software support better business outcomes, i.e., opportunities for profit?

Is PracticePanther Cloud-Based?

PracticePanther is completely cloud–based and offers a variety of features to make law practices run more smoothly. It is the only option on the market that is truly all-in-one, meaning you can effectively run your law firm without having to subscribe to multiple different platforms.

Is Smokeball Cloud-Based?

The simplest answer is ‘not quite.’ Smokeball’s software is a hybrid of desktop software and cloud-based software, so while it does still carry some of the advantages of cloud technology, it still harbors some of the drawbacks of desktop software.

Is MyCase Cloud-Based?

MyCase is also cloud-based. MyCase’s centralized cloud database helps you, in their words, “keep legal documents organized and accessible” whenever you need them. However, it relies heavily on third-party integrations for full functionality.

Is PracticeMaster Cloud-Based?

As of very recently, PracticeMaster has become a new addition to the cloud software available for legal practice management. PracticeMaster does require you to use it in conjunction with Tabs3 to get billing and accounting to function.

Is Clio Cloud-Based?

Clio offers cloud-based software and encourages firms to use integrations. It’s one of the older software options on the market and is also on the pricier end. Their setup requires add-ons at extra fees which can quickly drive up costs for access to essential features.

Legal Files is also a cloud-based solution. Legal Files offers a cloud-based platform that can work for law firms, although they specifically call out their software’s usefulness for a “large government department.”

The right technology can be a great asset to your practice. And at PracticePanther, we’ve spent time creating that technology to bring you a better way of practicing law. As the only cloud-based, all-in-one LPMS, we offer a secure, convenient, easy-to-learn software that will support your practice every step of the way. With all of the features we mentioned in this article (and more!), we’re ready to help you take your practice to the next level.

To learn more about what PracticePanther can do for your firm, sign up for a free trial on our website or schedule a free demo with us by clicking below. We look forward to helping you grow your practice!

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