Comments on: Comparing the Cost of SaaS LPM Tools to Conventional: The Metrics That Matter

By: Matt Horn

Matt Horn — Tue, 10 Mar 2009 13:03:59 +0000

Also keep in mind with SaaS you only pay for what you use. There are several desktop programs that we buy that we only use on rare occasions. With SaaS, costs are only considered when you use the program.
Perhaps the largest value based characteristic with SaaS is the time saved not having to update desktop software on each computer and synchronize multiple computers. I have worked with solo practitioners, large firms and software companies and the common complaint with desktop software is the time it takes to update software on each computer and synchronize multiple computers in an office so the desktop program has the same information.

By: Matt Horn

Matt Horn — Tue, 10 Mar 2009 13:03:00 +0000

By: Bruce

Bruce — Sun, 08 Mar 2009 15:42:16 +0000

Hi, Carolyn. I wouldn’t be surprised if part of the issue with SaaS practice management were to come from the perception that when one buys a package with a permanent license and it sits on one’s desk, it feels like “owning a practice” whereas under SaaS it feels like one doesn’t own one’s own practice. In other words, I suspect that SaaS practice management tools could position themselves better through optics designed to make the attorney feel like they are renting office space rather than renting the filebox which the leasing company could yank back.
Lawyers feel possessive about their books of business, as they certainly should. It takes a lot of trust and the passing of a psychological hurdle to allow a third party to control, even indirectly, the DNA of a law practice. Legal research is an arm’s length tool, to tap and drop. No one can grasp the totality of jurisprudence, not even the smartest, most studied lawyers, so tapping into a garden that some publishing company tends is inevitable. But the clients – they are our grapevines, our green peppers, our onions.
Maybe this doesn’t reflect objective reality but I think it reflects the psychology of many of us who have the “solo gene.” I might be wrong of course.

By: Bruce

Bruce — Sun, 08 Mar 2009 15:42:00 +0000

By: Andrew Weltchek

Andrew Weltchek — Sun, 08 Mar 2009 14:14:16 +0000

Good post. Thank you. My virtual assistant and I were recently considering this very question. As a new solo, the key factor for me was freedom from sunk costs. That is, with SaaS, it costs me less cash to switch LPM tools – which, in fact, I have done. It’s perhaps hard to compare the time and aggravation of switching desktop programs and SaaS services, but not the out of pocket cost, which clearly favors the SaaS format.

By: Andrew Weltchek

Andrew Weltchek — Sun, 08 Mar 2009 14:14:00 +0000

By: Jason Goodwin

Jason Goodwin — Fri, 06 Mar 2009 11:32:25 +0000

I think Jack is right – it’s about the value – but I tend to think the issue is moot. If non-legal software packages are any indication, web-based (predominantly SaaS) and desktop/laptop sw are moving towards eachother. Think Google Gears, or Quicken (now avail both on the desktop and online).
Another thing to mention in the equation, though, is that SaaS will end up costing just as much or more over 2 or 3 years, but you still need updates at the end of that period. It’s not like you could have paid for Windows 3.1 in 1993 and still have a functioning, efficient business today.

By: Jason Goodwin

Jason Goodwin — Fri, 06 Mar 2009 11:32:00 +0000

By: Jack Newton

Jack Newton — Thu, 05 Mar 2009 13:54:14 +0000

Great post, Carolyn.
A truly honest cost analysis of traditional desktop systems and Software-as-a-Service systems is hard to do. Each “side” of this debate can make a convincing argument one way or the other by making a set of assumptions about initial and ongoing costs, but vendor-based positions on the Total Cost of Ownership need to be viewed with a grain of salt.
Rather than comparing Desktop VS Software-as-a-Service solutions from a cost perspective, I think the discussion should shift to a value-based discussion. What is a practice management system worth to your practice? How much time can it save you per month? How much faster can you get the bills out the door? How much faster can it get you paid? Can you provide a higher level of customer service and deliver higher customer satisfaction?
Each practice management system, whether it is desktop-based or Software-as-a-Service, can be compared along these dimensions, and each firm will ultimately have to decide whether the benefits justify the costs.
There are so many interesting issues and perspectives on this debate, thanks for weighing in Carolyn.

By: Jack Newton

Jack Newton — Thu, 05 Mar 2009 13:54:00 +0000