Human beings show a stronger inclination to avoid loss than to generate a gain of the same or even greater value. This phenomenon, discussed in the work of Nobel Laureate Daniel Kahneman, is in fact the basis for a whole new branch of economics that has upended the “rational actor model” of classical economics.
Put simply, people tend to display status quo bias: to prefer “the devil we know to the devil we don’t.” Few are more risk averse than attorneys, whether by disposition or training.
This is the background psychology that any new legal technology confronts. It may be that to succeed, a new technology must not only be as good as what it seeks to replace. It must be better.
My company, Nextpoint, is the developer of TrialManager, a Web-based platform for evidence management. TrialManager is part of a software phenomenon known as “SaaS,” Software as a Service, which has begun to capture greater market share and media attention. With SaaS applications, there is no need to license, install, patch, or upgrade software, or to purchase and deploy any significant hardware, support, backup or security infrastructure. All one needs is a Web browser and a broadband connection and the service is at your fingertips – regardless of whether you are using a Mac or Windows. Updates are incorporated into the service as they are completed, automatically available the next time you log in.
The benefits of the best SaaS applications – services that are powerful, scalable, reliable, easy to use and access, and relatively inexpensive – should be apparent to solo practitioners. They, least of all, can afford to spend any significant resources on overhead. Solo practitioners need good, cost-effective tools to level the playing field against their larger adversaries. One of the biggest benefits is that Web-based services enable complete mobility – one is no longer tethered to one’s PC or a local area network. TrialManager, like many SaaS products, can even be viewed on one’s iPhone.
I have spent some time discussing TrialManager, and Web-based services more broadly, with solo and small firm attorneys. What I have found, at least among those who are most vocal in their views, is that there is a pronounced focus on the risks of the Web-based model. While it is completely reasonable to point out risks, it is always striking to me that the risks of people’s current practices are rarely factored into the discussion, and the risks are rarely balanced against benefits.
Some of the objections I hear to Web-based services, and my responses to those objections, are:
- Will my data will be held “hostage” to predatory price increases? Maybe it happens, but I am not aware that this is a pervasive issue. In fact, services delivered via the Web tend to push prices down significantly due to efficiencies of production and distribution.
- How can I let my client-confidential data be hosted off-site? Use of a reputable outside service provider does not waive attorney-client privilege or breach standards of confidentiality per se (in my view). One should of course assess security, backup and uptime issues with any SaaS provider. But what is more secure from theft, storage failure or downtime: the computer on which you are reading this message, or geographically dispersed data centers with redundant hardware and strong security protocols? For that matter, what happens when you leave your laptop – with a hard drive full of unprotected client files and e-mails – in a taxi? Even your computer sitting on your desk at the office can be hacked into if not appropriately protected. So the issue is not Web-based versus local. It is whether appropriate security measures are in place under the circumstances.
- Is it fast enough? Speed is obviously an issue for Web-based services. Make sure a SaaS provider you are considering offers a no-risk trial, so you can check out performance for yourself. If you lack a fast broadband connection, you certainly should think twice. Of course, speed is not just an Internet issue. PC’s with insufficient horsepower get bogged down by large software installs, spyware, and viruses. Who has not had the experience of local software applications just crawling along? At least with Web-based services, you can typically do other things on your computer while a remote server processes a huge job.
- What happens to my data if the provider goes out of business? The doomsday scenario is that a SaaS provider suddenly goes under, and takes your data with it. I am not personally aware of such scenarios. However, the issue of business failure is a concern relative to all software vendors. The economies of developing software for the Web afford even smaller vendors a good measure of financial stability. Development costs are generally low, and monthly billing provides ongoing revenue streams. As always, nothing takes the place of doing good due diligence – looking at existing customers, operating history, financial backing and the like. If you are really concerned, most SaaS platforms enable you to do periodic exports of data to keep as a backup.
None of what I have said here is meant to suggest that Web-based services are a panacea, appropriate in every application for every practice. I am saying that solo practitioners should be mindful of the dangers of excess caution toward the new – the status quo bias. It can discourage adoption of superior methods of operating (in technology and beyond), ones that would lead to better, more economical service for our clients and improved quality of life for us as practitioners.
Thanks to Sheryl for letting me use The Inspired Solo as my soapbox today.
Ken Obel is Vice President of Corporate Development & General Counsel of Nextpoint, Inc., developer of TrialManager. Check out “Frank,” Nextpoint’s blog covering trial preparation and technology issues.
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SaaS, web-based applications, practice management tools for solo lawyers
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