Linklaters is replacing its controversial NeXT document management system with a multi-million pound IT package which incorporates Documentum, the Internet-based document management system, Microsoft Office and Microsoft's Windows Terminal Server product.

Documentum, which is thought to have cost £1m alone, went live in Moscow last week. Linklaters expects to have it installed at all the firm's offices by the end of April.

Linklaters is believed to be the first law firm to install Documentum, although PricewaterhouseCoopers bought the system in November.

Simon Thompson, Linklaters' head of information and strategy, said his firm chose Documentum because it integrated well with the Web, was very secure and offered an open environment where new systems could be added easily.

"We believe it is the market leader in its field," Thompson said.

Eyebrows were raised at other City firms when Linklaters first installed NeXT in December 1994.

Many felt it was a bizarre choice
of IT package for a law firm because of its considerable cost and because it was so different from what everybody else in the market was doing.

Thompson said Linklaters was very happy with the NeXT system, but Documentum would offer greater scope for lawyers and clients to work closer together and share knowledge more easily.

Linklaters will eventually use Documentum to manage all of its document-based information, including know-how, practice management and its Blue Flag-type online services.

The firm is also rolling out Windows Terminal Server and making the switch to the Microsoft Office software package.

Windows Terminal Server, an add-on to Windows NT, enables Linklaters to centrally control its desktop PCs in a similar way to traditional mainframe systems.

This will allow the firm to reduce the cost of desktop computers by using 'thin clients' – desktop machines with much lower specifications than standard PCs.

"Everybody will have access to a standard set of applications," Thompson said. "Now Windows NT is viable, we can retain the benefits of centralised management we had with NeXT, but get the advantages of using Windows software.

We didn't want to introduce unmanaged PCs on a network."

As a result of the changes, Linklaters lawyers will now be using Microsoft Word as their word processing package, bringing them into line with most of their clients.

Freshfields IT director David Hamilton said: "It is nice to see Linklaters coming back towards the standard strategy that other firms have adopted.

Documentum is an interesting choice. It is a fine product, but it is questionable whether a law firm will be able to make use of all its advanced features. It's a Rolls Royce system."