The debate over cloud vs. on-premises legal software can sometimes take on a dogmatic tone. Vendors tend to push cloud-only systems. Meanwhile, many firms are hesitant to take on a new deployment model when they have always used on-premises systems. When positions become entrenched, it can be difficult to focus on the real issue: fit.
Choosing a deployment model should be a practical decision about control, cost structure, IT burden, remote access, and security posture. This guide offers a balanced framework to help partners and administrators evaluate cloud, on-premises, and hybrid options.
How Each Model Works
Cloud: Your software runs on the vendor’s servers (or in a data center). You access it through a browser or an app. The vendor is responsible for server access, security, backups, and maintenance.
On-premises: Your software runs on servers that you own. You are responsible for server access, security, backups, and maintenance.
Hybrid: Core systems run in your on-premises system and selected components run in the vendor’s cloud.
5 Tradeoffs to Consider
In addition to running the numbers on which system makes the most financial sense, it is helpful to consider your needs around control, cost structure, IT burden, remote access, and security/backup responsibility.
1. Control
Cloud: The vendor controls updates, access, uptime, configuration, and infrastructure (within the confines of your contract with them).
On-Premises: You control updates, access, uptime, configuration, and infrastructure. You can make changes when you decide to do so.
Hybrid: Control is distributed between you and the vendor; the exact distributions vary across vendors. You choose which functions you delegate to the vendor.
2. Cost Structure
Cloud: Typically, you pay a monthly subscription fee, with some variation in how this is structured. No hardware costs beyond the devices you use to access the browser/app.
On-Premises: Capital expenditures to procure servers plus ongoing costs to maintain them. Usually includes more in-house IT expenditures.
Hybrid: A mix of both types of expenses. Total cost depends on how the hybrid system is structured.
3. IT Burden
Cloud: Minimal additional IT spending, since the vendor handles system maintenance and management needs.
On-Prem: Need in-house IT staff or a managed service provider.
Hybrid: Potential to reduce in-house IT staff spending, since the vendor takes on some of the system maintenance and management burden.
4. Remote Access
Cloud: All access is remote. Maximum remote access opportunities.
On-Prem: Requires VPN or remote-desktop setup.
Hybrid: Typically includes remote access for some system components.
5. Security & Backup Responsibility
Cloud: Vendor is responsible for updates, patching, backups, and physical security.
On-Prem: You are responsible for all updates, patching, backups, and physical security.
Hybrid: Distributed responsibility for security and backups.
When Cloud Fits
Cloud deployment is often a good fit for firms where remote work is a priority, because remote access is a given. It can also be a strong contender for firms that are growing rapidly, because they may have leaner IT departments and less appetite for capital expenditures.
In general, it makes sense to consider cloud deployment if your firm:
- Prefers subscription-based pricing.
- Has limited in-house IT resources.
- Needs full remote access and mobile accessibility.
- Wants to avoid managing updates, security, day-to-day management, and backups.
When On-Premises Fits
On-premises deployment is still a legitimate choice for firms, especially if they have unusually specialized workflows, unusually sensitive data (over and above normal ethical requirements), or other need for a high degree of control and customization.
In general, it makes sense to consider on-premises deployment if your firm:
- Has unusually strict compliance requirements or internal security policies.
- Needs maximum control over data, configuration, and update timing.
- Already maintains a strong IT infrastructure that can support on-premises systems.
- Will use the system for long enough to recover capital expenditures.
When Hybrid Fits
Hybrid deployment is often a good fit for firms that need some cloud features (often remote access is a big motivator) but have some requirements that only on-premises systems can satisfy. It can be a middle ground while the firm is in transition, or a permanent state.
In general, it makes sense to consider hybrid deployment if your firm:
- Needs to balance a relatively high degree of control over systems while getting the benefits of offloading some functions to a vendor.
- Wants to keep core financial functions on-premises while opening remote access for timekeepers and partners who approve invoices.
- Is transitioning gradually toward the cloud but not ready for a full move.
Questions to Ask Any Vendor About Deployment
This question checklist will help you assess vendors’ deployment options.
What deployment models do you support?
How do you support on-premises systems?
How is my cloud data secured?
How is remote access secured?
How do you handle backups and disaster recovery?
What control do we retain over updates?
What are the long-term costs of each model?
Can we switch models later without a full migration?
Deployment Flexibility in Tabs3
Tabs3 Billing, Tabs3 Financials, and PracticeMaster can run in any deployment model you choose: cloud, on-premises, or hybrid. You can pick the right fit for your firm today and adjust as your needs evolve. Talk to a specialist today.
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