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Corporate Law Departments

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challenges persist, the atmospheric conditions are seeding the opportunity for a broad spectrum of new and innovative legal services that were not on the horizon even a decade ago. Today, corporate law departments are driving their law firms to maintain high quality and competitive service offerings while lowering overhead and controlling fees (whether hourly, flat or other type of fee arrangement). In this regard, the cloud has similarly taken form in the legal profession with the advent of "cloud lawyering." With the legal profession's ever-present caution (and skepticism!), we ask ourselves whether this is merely a light sprinkle or the perfect storm. FORMATION OF THE CLOUD Even though this concept originated in the world of IT, nearly every aspect of our human existence is subject to eventual "cloud-ification." While certainly including the technology dimension — software, databases, applications, email, etc. — the term "cloud lawyering" has a much broader meaning in the context of redefining how professional service skills are accessed through a delivery model that is more highly tailored to the scale and capabilities needed by the client. In setting the stage for cloud lawyering, perhaps the most significant disruptive innovation has been the disaggregation of the case management process. By applying process re-engineering concepts, such as Six Sigma, law departments and law firms have a deeper understanding and knowledge of their workflows and how their legal work is accomplished. This higher level of sophistication has resulted in a focus on finding the most cost-effective resource able to achieve the desired result, regardless of physical or geographic location. While protecting attorney-client privilege and professional standards of conduct remains paramount, these emerging legal models promise an aurora of new opportunities. While cloud lawyering may be a new term, the concept of a so-called "virtual" firm has been around for many years. Although some lawyers may take offense to the idea that they are somehow "not real," rest assured their Juris Doctor and bar admittances absolutely are! A firm can still be made up of shareholder partners and associates, but the new business model enables an organization without (or with fewer) brick-and-mortar offices. Today, the virtualization of a law practice is more about the concept of multisourcing: the firm owns and manages the case, but with a broader array of resources to meet the client's needs. In fact, as far back as 2004, the American Bar Association acknowledged this concept by offering a definition of the "virtual law firm" as a law firm that: • Has a stable core group of attorneys; • Has established collaborative relationships with other specialized resources that possess expertise that's occasionally needed; • Is glued together with appropriate computer and telecommunications technology; and • Expands and reduces personnel as needed. ELEMENTS OF THE CLOUD As this new model of cloud lawyering continues to emerge, the principles of the virtual law firm are particularly relevant as a new generation www.iltanet.org Corporate Law Departments 7

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