Link: Rough Type: Nicholas Carr's Blog: McKinsey surveys the new software landscape. The software as a service model is a "no brainer" and it is not surprising that McKinsey is finding growth. Just about all the trend reports I read these days are pointing in that direction and it seems obvious why. I just want to use software but I don't want to be in the business of upgrading it and supporting the hardware necessary to run it. Most small businesses will soon move in great numbers to this model, and many have already done so.
What about small law firms? Some boutiques will make the move, but the legal industry will likely lag for the most part. There are many that fear the security black hole that is the Internet. This is a legitimate concern but finding a trusted provider (read big) is a viable solution. No one can convince me that the server room down the hall (for most small firms and many large ones) is more secure than Google Apps (paid edition).
Just ask 2/3 of the legal community in New Orleans how secure their files were? Yes, the legal industry as a whole will lag; all the more reason why prudent risk takers should embrace it. It presents an opportunity to scale at a fraction of the costs. In these tough economic times low cost infrastructure is more than a competitive advantage, it could mean survival.