Losing Data When Cloud Vendor Folds Is a Real Risk. But It's Also Avoidable
A recent LTN Law Firm Tech Survey found that many law firms are concerned their data will disappear after a cloud vendor closes up shop. While industry observers say these risks are real, they note such damage is largely avoidable.
October 02, 2020 at 11:03 AM
3 minute read
Not all cloud-based legal tech companies stand the test of time. Some bow out of the market via acquisition, while others just shut down. But as a defunct company's sales rep stops making calls, their law firm clients are left anxiously wondering, "Where is my data?"
To be sure, many law firms still aren't comfortable having their client data off-premise. Even when a vendor can coax a firm to leverage their cloud-based storage, lingering concerns remain. Law firms worry bankruptcy filings among cloud-based legal tech companies means their client data will be lost in the shuffle. But industry observers and legal tech providers said that while such risks are real, due diligence can prevent that worst-case scenario.
Pillsbury Winthrop Shaw Pittman global sourcing and tech transactions partner Brian Bodor said of losing data in the shuffle, "It is a 100% valid concern." And he's not alone. According to the 2020 LTN Law Firm Tech Survey, 45% of law firm respondents said concerns about what happens to data if a vendor goes out of business were their largest worry regarding cloud storage.
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