OneDrive for Law Firms

This article on OneDrive for Law Firms is written on an important principle: modern law offices store their legal files in the cloud.

One of the most popular choices for cloud-based storage is Microsoft OneDrive for law firms.

It integrates with Office 365 and features a streamlined interface that’s great for small firms that need simple and quick file storage.

Are you considering OneDrive for your law firm? If so, there are some things you need to know before you choose a file storage tool.

While OneDrive is a good cloud-storage tool for many, law firms may find it lacks key features needed in the legal industry.

Continue reading to review its viability for your firm.

The legal industry is increasingly moving away from traditional on-premise file servers, a shift driven by the need for more cost-effective, flexible, and secure data management solutions.

On-premise servers, while familiar, pose several challenges: they are expensive to maintain, lack scalability in terms of storage capacity, and often require complex setups for remote access.

Take a look at the chart below, which highlights the risks associated with maintaining your own servers over the years.

Enter cloud-based storage – a paradigm shift in how law firms handle their growing data needs. This technology offers several compelling advantages:

Plus, cloud-based file storage is easy to use, making it a great choice for larger firms that want something they can adopt fast.

It not only addresses the limitations of traditional file servers but also introduces new efficiencies and capabilities.

Cloud storage, a pivotal element in modern legal practices, offers a significant shift from traditional data storage methods. Platforms like OneDrive for law firms exemplify this change.

Instead of storing files on a local computer’s hard drive or other onsite storage devices, cloud storage saves data to a remote database. Accessing these files requires an internet connection and the use of an application or software, which can be operated on desktop computers or mobile devices.

If you run a modern, paperless law firm and you want the flexibility of cloud storage for your practice, there’s only one challenge standing in your way: finding the right cloud storage system for you.

There are many different options for cloud-based systems on the market today, each with its own pros and cons. So, how do you choose? You should select the cloud storage solution that fits your firm’s specific needs.

For example, you should choose a tool that offers the functionality your legal team needs now and in the future. Plus, it should offer the benefits that your team deems important such as ease of use, mobility, and scalability.

Before you dig deeper into your options, meet with your team to discuss what they feel are must-haves in a cloud storage system. That way, you select an efficient and supportive tool your team will be thrilled to use.

Just like any tech niche, there’s always a ton of jargon involved when talking about software platforms.

We like to keep things simple around here.

So, for law firms, we categorize the whole lot of cloud storage systems into two classes: basic cloud storage and document management systems.

Basic cloud storage does one thing well: provide simple storage for your firm’s documents and data. These tools don’t have a lot of features and instead focus on being the equivalent of an in-office filing cabinet (only much more organized).

Some attorneys choose to create a set of top-level folders they use across the firm. For example, they’ll create a new folder for each client or each matter. Then, all documents about those clients or matters will go in their respective folders.

Basic cloud storage is similar to finding a document on your computer. Yet, instead of pulling up File Explorer (Windows) or Finder (macOS), you’ll access your files inside a browser or desktop app.

Some examples of basic cloud storage apps include Microsoft OneDrive, Dropbox, and Google Drive. These apps offer several benefits, including:

While these benefits are appealing, especially for smaller firms, larger firms may find the lack of advanced document management system (DMS) features limiting.

Basic cloud storage solutions often fall short in areas like sophisticated search capabilities, email management, and can encounter synchronization issues when multiple users are involved.

For a deeper comparison of cloud storage options, take a look at our Cloud Storage Comparison Chart.

Here’s a sneak peek:

Cloud storage is secure, cost-effective and easy to implement. Even so, they come with challenges and drawbacks for firms larger than three or so people.

Consider these limitations and drawbacks when evaluating cloud storage for your firm:

Related:

You should carefully evaluate your law firms needs when it comes to evaluating cloud storage solutions.

Do you need a simple, online platform to create folders and upload data (only), or do you need more sophisticated tools to manage documents for your clients and matters?

On the other side of the spectrum is the document management system or DMS. Instead of being a fancy online box, a DMS is a robust system that enables you to both store and manage documents in a cloud environment.

In the past, these systems were installed directly into the on-premise server or your computer. Now, they’re available for you to use inside the cloud without sacrificing the feature-rich benefits of on-premise software.

Document management systems offer many advantages over basic cloud storage. To name a few:

Microsoft OneDrive falls into the basic cloud storage class. OneDrive is an internet-based storage platform available to anyone with a Microsoft account. This includes users who pay for a Microsoft 365 subscription (OneDrive Business) and those who simply choose to use the free version of OneDrive (basic consumer account).

OneDrive works on a variety of operating systems, including Windows 8, Windows 10, and macOS. You can choose to have various files and folders sync to OneDrive automatically (such as Desktop, Documents, and Pictures) or you can manually add files as you create them.

OneDrive offers many features for simple file storage and sharing.

Some of these features include:

While OneDrive’s free version, with a 5GB storage limit, might suffice for personal use, it’s often inadequate for law firms.

OneDrive for Business addresses this gap with plans tailored to organizational needs.

For example, the basic OneDrive-only plan includes 1TB of data per user at $5.00/month, scaling up to unlimited data storage per user at $10.00/month.

Additional plans include those that feature other Microsoft services such as Exchange and Teams as well as apps, including Outlook, Word, and OneNote. The plan you choose depends on the apps you currently use (or plan to use) within your firm.

This section aims to guide legal professionals through the practical aspects of using OneDrive, helping them make informed decisions about integrating this tool into their digital infrastructure and document management strategies.

OneDrive is a useful cloud storage tool for many solo or small law firms that have simple file storage needs such as basic file and folder structures.

It’s also a good choice if you don’t need full-text search or the features included inside a more robust DMS such as tagging and versioning.

Are you using OneDrive for the first time? Looking to improve the way you and your legal team use OneDrive?

We’ve seen our fair share of OneDrive setups over the years, from the simple to the complex. And we’ll be the first to tell you that keeping things simple is the best plan of action.

Here’s an example of an ideal setup:

In addition to central, firm-wide folders, OneDrive also provides each user within your firm with their own individual folders.

This gives each user in your firm access to firm-wide documents, as well as a workspace for private documents, or documents that are in progress and not ready to be filed (saved) to Firm Documents or Matter Documents.

Again, this is only a sample and should be tailored to fit your firm’s needs.

Some attorneys create folders for closed matters as well as those that have been denied. And some go into further detail within each matter folder, adding folders for items such as discovery, pleadings, and retainer agreements.

The distinction between mere cloud file storage and a comprehensive Document Management System (DMS) is critical.

While basic cloud storage provides a foundation, a DMS offers a more sophisticated, tailored approach essential for the nuanced needs of the legal industry.

This section underscores the advanced organizational, security, and compliance features of DMS, illustrating why it often emerges as the superior choice for legal practices seeking extensive document management capabilities.

Cloud file storage and document management are not the same, even though some software companies use the terms interchangeably.

As we mentioned earlier, a document management system (DMS) is a robust solution that enables both storage and management of documents in a cloud environment.

If while reading about OneDrive you thought, “I think we need more than that,” you’re probably right.

While some firms start with simple cloud storage tools, they typically find they need a full DMS later down the road. Choosing a DMS now can save you the headache of switching later on.

Document Management System Features

Not only does a DMS provide the storage of your critical documents, but it also provides the tools you need to properly manage them. Most solutions will provide a wide range of features, including:

If you’re considering moving forward with a DMS, it’s best to understand what to expect. Some of the pros and cons of using a document management system include:

Investing in a comprehensive DMS is a strategic decision for law firms, often involving higher costs compared to basic file storage solutions.

However, the value derived from a DMS justifies this investment. For instance, the LexWorkplace document management base package, at $395 per month, offers up to 5 users with 1TB of storage.

This is just one example, and costs will vary depending on the chosen solution and its features.

It’s crucial to consider more than just the price when selecting a file storage solution. The right choice should align with the specific needs and workflows of your firm.

Opting for a cheaper solution that doesn’t meet these needs can lead to greater expenses down the line, especially if a migration to a more suitable platform becomes necessary.

Emails are an integral part of a law firm’s daily operations.

They are not just messages but critical documents that often contain essential legal information. Effective management of emails is therefore crucial for the smooth functioning of a modern law practice.

This includes saving important emails to client matter files, sharing them with team members, and integrating them into the firm’s overall document management structure.

Emails are the lifeblood of client communication in law practice. They are the conduit for receiving signed documents, negotiating contracts, and delivering invoices. The ability to efficiently manage these emails is vital to maintaining the flow of business and ensuring that critical information is readily accessible and securely stored.

Basic cloud storage tools like OneDrive, while useful for simple file storage, fall short in their capacity to manage emails effectively. They lack features such as direct email saving to client matters, easy retrieval, and organized storage that aligns with the rest of a firm’s documentation.

A robust DMS, on the other hand, offers these essential email management capabilities, ensuring that emails are as organized and accessible as other documents. This seamless integration of email into the broader document management framework is a key advantage of a DMS in a legal setting.