Case management software falls into categories – On-premise/self-hosted systems and cloud-based systems.
Let’s first take a look at the cost associated with the self-hosted system:
These systems are installed and hosted on servers or computers in your physical office location. So to some degree, the cost will depend on the size of your firm. Larger firms require more computers, servers with more capacity and power, and more user licenses. Not to mention the ongoing support necessary to maintain and secure these systems. The costs for implementing and maintaining an on-premises case management solution are not necessarily cyclical—sometimes, they are sporadic and hidden.
Following is the breakdown of the cost associated with legacy, self-hosted case management systems.
|Items – Legacy/self-hosted/on-premise system||Cost|
|Server and server software||$8000|
|Maintenance & security monitoring||$600/month|
|Spam filtering||Variable per month|
|Total year 1||$25,000-$35,000|
|Total year 2||$10,000-$20,000|
Now, let’s take a look at the cost associated with Cloud-based systems.
Cloud-based law practice management software is extremely elastic; it can scale up or down as your organization requires to meet your unique demands.
All your data sits on remote server farms maintained by some of the biggest companies in the world, such as Microsoft or Amazon. Importantly, in addition to being secure, cloud systems are much less expensive and include many features most law firms could not afford with self-hosted systems.
- No on-location server and office costs, which in turn leads to the absence of maintenance contracts, in-house IT, and specialized server security personnel.
- Data backups, across many locations, equals more security from breaches, acts of God, environmental factors, etc.
- 24/7/365 proactive security monitoring performed by cybersecurity experts.
- Anytime, anywhere, immediate all-access across multiple devices and platforms, leading to greater efficiency in collaboration and tracking.
- The cost of training is often included in your yearly or monthly subscription. Still, it can differ based on the vendor’s pricing policy.
- Costs incurred on a per-user/per month or year basis, which leads to significantly lower prices.
- Substantially less time and costs associated with setup.
- Cost of repairs and feature upgrades are borne by the vendor and are usually included in your subscription cost.
|Items – Cloud-based system||Cost|
|Server and server software||N/A|
|User licenses||Start from $65/user/month|
|Maintenance & security monitoring||Included|
|Feature upgrades and updates||Included|
|Total year 1||$2,000-$3,000|
|Total year 2 onwards||$2,000-$3,000|
A cloud-based matter management system offers pay-as-you-go monthly subscriptions, which are cash-flow friendly and do not require an upfront payment. So the cost increases only as you add more users as your law firm grows bigger.