We've got a guest article today from Mark Garnish of TFB on that always topical question of whether software end of life clauses are worth the effort...
As a leading supplier of legal IT, one of the most common requests TFB receives from new clients is a guarantee not to “end of life” computer software and it is easy to understand why. Traditionally lawyers tended to buy their computer systems in 5 year cycles and as the choice of software was largely proprietary to certain hardware platforms, it was customary not to just change your software, but to change the entire system. Nowadays, nearly every firm will be running Microsoft Windows with a Microsoft server and any software supplier worth their salt would not even be considered for inclusion on the short-list if the software did not work on this standard platform. As a result suppliers, whilst still supplying hardware services, no longer view this as being a key part of their role (unless they specialise in it) and will invariably be hardware agnostic; being comfortable with installing and running their systems on pretty much any platform that lawyers are using at this time.
Lawyers can take many months, sometimes even years, to decide which practice and case management system to implement. Having gone through the pain of making that decision, the last thing that they want is for their supplier to bring out the latest, shiny new product a few months after contracts have been signed. Worse still is hearing the dreaded news that an “end of life” notice has been issued on their existing software.
It is interesting to explore why end of life notices produce such an emotive response in software. With Practice and Case Management systems you expect your supplier to assist you, either over the telephone or via email, in the event that things go wrong. More importantly, you expect your chosen supplier to keep the product up to date with industry best practice along with changes to legislation and other standards such as SAR’s, Legal Services Commission etc.
It is this final point which is what firms are really trying to protect against when they ask for no “end of life” in a supply contract. Essentially they are saying
“we are making a commitment to you to purchase your software and we expect you to guarantee to support it for a period of years”.
So far so good, but let us just think about what exactly you are asking a supplier to commit to. By requesting that they contractually agree that they won’t end of life the product, you are simply ensuring that they won’t discontinue support of that product over the period. When most of us think of support we are really thinking of the supplier’s helpdesk, so essentially your request to not end of life a product means that you are expecting your provider to help you fix problems with it over the period. Whilst they may baulk a bit at this type of request they are not really giving very much away. Nobody in their right mind would really try and sell you a product today which they expect to withdraw within the next 5 years, so merely saying that they will continue to help you over the telephone for a period of 5 years should give precious little comfort.
The questions you should really be asking your supplier are these:
1. Do you have any intention to end of life this product over the next X years?
2. Have you already started work on, or are you planning any successor products to replace the product that I am about to sign a contract for?
If “yes”, will I be entitled to upgrade this software “free of charge”? and does that include services such as training and data transfers?
If “no” do you guarantee to continually develop the product I am purchasing for the next X years?
This last point is perhaps the most important of all. We all know and expect our software suppliers to be going through a continuous development programme of introducing new software products. For most there comes a time when it is better to introduce a new product than to continually evolve and enhance an existing one. The question for suppliers then is this; having made that decision, what do you do with your existing clients? The worst nightmare for a client is that your supplier decides to introduce their new offering and effectively cease development or enhancement work on their existing product whilst not actually issuing an end of life. At this point you are caught between a rock and hard place. Your supplier will effectively no longer be enhancing your current product, meaning that your technology will fall behind, but they are under no obligation to release the new product to you, without you paying for it, which you hadn’t budgeted for at the time of signing the original contract.
So, what is the solution?
Whilst you will obviously want to ask your supplier about their intention to issue end of life notices, this is not really the area where you will need to be protected from a contractual point of view. The minimum that you would require from your supplier is this:
The supplier will continue to support, maintain and enhance the product for the foreseeable future but for a minimum of X years. In the event that a successor product is developed the client will be entitled to an upgrade, including all services and charges, free of charge, for a period of Y years from the date of this contract.
It is up to each firm to determine what X and Y should be but 5 years should be considered a minimum for a free upgrade even if it may be considered reasonable to pay for some services such as training after 3 years.
In summary, an end of life notice means that there will be somebody at the end of the telephone to help you in the event that you get stuck. A continuous development clause will ensure that, but with the added reassurance that your software will continue to be enhanced and kept up to date with modern practices. Including such a clause in the contract with your suppliers will not guarantee that you will make the right decision on which product to buy, only your own due diligence can do that, but it will give you peace of mind that your new system will work for you for several years to come.
...Mark Garnish, TFB PLC
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Tuesday, July 31
Are end of life clauses worth the effort?
by
Charles Christian
on Tue 31 Jul 2007 08:28 BST
Monday, July 30
BlawgWorld 2007 published today - and available here free
by
Charles Christian
on Mon 30 Jul 2007 14:37 BST
TechnoLawyer, the popular US online network for lawyers and law office administrators, today launches a free e-book: BlawgWorld 2007 (which is published in conjunction with the TechnoLawyer Problem/Solution Guide).
BlawgWorld 2007 (blog + law = blawg - geddit?) features a collection of essays from the legal blogosphere on both legal and practice management related topics and follows on from the first edition, which downloaded over 45,000 times. In the 2007 TechnoLawyer Problem/Solution Guide, a sponsored resource, law firms will find 185 real-life problems and corresponding solutions written from the point of view of a law firm – although UK readers should note most of this section deals with primarily US law firms issues. To obtain a free copy of the 366 page BlawgWorld 2007 e-book, click here: http://www.technolawyer.com/r.asp?L11545&M1 – please note the file is about 10.2Mb in size. Friday, July 27
HIPs - they're here next week
by
Charles Christian
on Fri 27 Jul 2007 11:32 BST
The Great British HIPs Non-Event starts next week - on Wednesday 1st August - and just in case you still haven't got a clue what's going on (and we appreciate a lot of you don't care but that's a different story) check out the Progress newsletter from the Department of Communities & Local Government (or whatever its called this month). This is a free email newsletter (plain text or HTML) covering everything that's taking place in the HIPs world, including on-going legislative developments, including statutory instruments and House of Lords debates. Well worth taking the trouble to obtain and read if your are in the property and conveyancing market. The URL will take you through to the subscription page: http://www.home-information.info/subscribe.cfm
Wednesday, July 25
New head of software development at Visualfiles
by
Charles Christian
on Wed 25 Jul 2007 12:30 BST
LexisNexis has appointed Aamir Yusuf as Head of Software Development at LexisNexis Visualfiles. Based in Leeds, Yusuf will play an important role in accelerating the development of applications for LexisNexis Visualfiles in order to meet expanding client needs in the UK, Australia, US and other LexisNexis global markets.
Yusuf’s responsibilities will include leading the LexisNexis Visualfiles toolset development, solutions development and quality assurance teams to continually improve capabilities and respond to changes in business emphasis. He will lead the management and communication of development programmes and timescales in addition to contributing to the solution vision within the LexisNexis UK and global strategy. Previously, Yusuf was Head of IT for Emerald Group Publishing, a specialist publisher of management research, where he was responsible for all software development as well as running the infrastructure and IT services. Monday, July 23
Another former Hummingbird star does his own thing
by
Charles Christian
on Mon 23 Jul 2007 10:54 BST
Yuri Frayman, the man behind the LegalKEY system which was one of the few brights spots in the old Hummingbird DMS empire, is now doing his own thing and has just announced that The Frayman Group Limited is now offering risk management consulting services to assist law firms with enhancing productivity and mitigating risks stemming from the handling of client, matter and internal information.
According to Carol Gunn, Director of Conflicts and New Business, White & Case LLP: “We’re leveraging The Frayman Group’s expertise to assist us with upgrades and enhancements to our LegalKEY Conflicts Management and New Business Intake systems, including database synchronizations and the development of new reports. In addition to development and project management services, we’re also utilising them for training and overall compliance and risk management assistance.” www.fraymangroup.com Friday, July 20
Miles 33 - a deal that slipped in under the radar
by
Charles Christian
on Fri 20 Jul 2007 11:16 BST
Mea culpa - while we were busily watching the antics of the CS Group we totally missed this deal slip in under the radar. It's slightly historic now but here it is anyway...
European Capital SA, a wholly-owned subsidiary of European Capital Limited has invested €83 million (£56 million) in the buyout of Miles 33 Group Limited. European Capital’s investment takes the form of equity, subordinated debt and senior loan facilities. As a result of the investment, European Capital is the majority shareholder of Miles 33 with approximately 60% ownership. Miles 33’s previous owners and senior management also invested in the company as part of the buyout and hold the remaining 40%. The official statement goes on to say "Founded in 1976, Miles 33 is a supplier of computer software to the publishing sector, with regional newspapers being its largest customer segment. Miles 33’s integrated suite of modules supports key functions such as editorial production and workflow, advertising booking (paper and online), customer relationship management and credit management. The company also supplies law firms with practice management and financial software." (We think it's fair to assume it is the publishing side of the business that attracted the lion's share of the investment - Charles Christian.) “I am delighted to have secured this investment from European Capital whom we believe to be the best choice to help us deliver the next stage of our strategic growth. The management team and I are excited at the prospect of what this new relationship can bring to the future of our business,” said Miles 33 chairman Alex Yew. Wednesday, July 18
The Vinasty saga continues
by
Charles Christian
on Wed 18 Jul 2007 19:20 BST
We're still getting a lot of reaction on the IRIS/CSG saga - mostly as comments added to previous postings, so keep watching the recent postings box on the right-hand column. This is the latest comment - and 'no' we don't know who made it either although its noticeable that the statement has not yet been released to the press...
"Well here it is the official position from IRIS to users: The new combined group, encompassing the legal software brands of AIM Evolution, Laserform, Videss Legal Office, Mountain Software, GB Systems & Meridian Law provides you, our customers with an extensive breadth and depth of choice that no others can match. Furthermore, we are fully committed to all our existing legal product lines and have no plans to end of life any products in the IRIS legal software range. What to make of it? At first glance it looks like a bit of a knee jerk reaction to the criticism from users and the market generally that no real statements had been forthcoming from CSG over the last year or so. It would appear they have no plans to 'end of life' - for this month, this year, 5 years?? Not very definitive and one which could be easily changed with new management, strategy etc. Of course it's a bit of a first for IRIS in that they have products competing in the same space so with hindsight a woolly statement may come back to haunt them. Reading between the lines this must mean that they are all competing within the same group still and therefore leaders will emerge, resources will not be shared equally and whilst some products may not have an end of life statement issued they will quietly fall behind. Another part of the statement reads: We not only lead the way in R&D but also in service and support. No other company in the market can claim to have over 300 people dedicated to the legal software market. Shouldn't this mean 300 people split between 8 competing product lines at the last count with all the politics etc associated. (I make it 300 between 6 = 50 people each ...Charles Christian) If you read up on their new owners you will see that they will expect an exit in 3-5 years max at a handsome profit. Given what was paid they'll have to go some to achieve this. Generally everyone realises IRIS will be up for sale in a relatively short period all over again either because it can't afford the massive level of debt or because its owner requires the exit that it will have made clear to management over the last few months - that's little comfort for users looking at their future IT strategy."
July Legal Technology Insider out now
by
Charles Christian
on Wed 18 Jul 2007 11:23 BST
The July issue of the Legal Technology Insider newsletter (the only serious source of legal IT news on the planet... probably) is out now. Top stories in our 200th issue include: the new focus Elite has unveiled for its 3E, Enterprise and workflow systems; how the balance may be tipping away from Windows Mobile devices and back in favour of the Blackberry (hooray); first reports on e-book technology and a new search system that is claimed to be as good as Autonomy but only a fraction of the price; and how TFB has upset some of the smaller Scottish legal IT suppliers by becoming the first vendor to be awarded recognised supplier status by the Law Society of Scotland. In our opinion slot Anthony Stables of Farrer & Co argues that Microsoft's Surface interface may be the way ahead for lawyers' PC desktops.
Thursday, July 12
Legal Week now owns Legal Tech (sort of)
by
Charles Christian
on Thu 12 Jul 2007 11:25 BST
Bruce Wasserstein, the chairman of
Lazard, has agreed to sell the American Lawyer Media group (which includes the flagship American Lawyer magazine and the Legal Tech trade shows) to Incisive
Media in the UK (the owners of Legal Week among other titles) for $630 million. Wasserstein and his co-investors paid $63 million for American
Lawyer and $200 million for National Law Publishing in 1997
to form the company that is now ALM. Incisive said it will pay cash for ALM, which publishes 33 US magazines
and newspapers for the legal and property professions.
The purchase will almost double the size of Incisive and help the company expand in the US. The deal is the fourth for the London-based company since it was acquired by Apax Partners in December. About 55 percent of ALM's revenue comes from print publications which, according to the management, win advertisers because legal professionals still prefer receiving information on paper. ALM had free cash flow of more than $10 million, or about 3 percent of total debt at the end of December, Moody's Investors Service said in a March report. American Lawyer had a monthly circulation of 17,000 as of last December Apax bought Incisive Media, which was founded in 1995, for about £275 million. Incisive publishes Investment Week and Accountancy Age in addition to Legal Week. Incisive said it plans to complete the purchase of ALM in the third quarter. Upon completion of the deal, ALM CEO William Pollak will join the board of Incisive Media. Wednesday, July 11
Meanwhile in the US, Lexis just keeps on buying
by
Charles Christian
on Wed 11 Jul 2007 13:17 BST
Amid all the interest surrounding the machinations of IRIS/CSG in the UK, we should not overlook the fact LexisNexis is building up its own legal tech empire in the US. Its latest acquisition is Nashville-based Juris Inc, a leading provider of time, billing, and accounting software for mid-sized law firms. (The UK equivalent would be AIM, TFB or Videss.) Juris now becomes part of the LexisNexis Practice Management solution line, which already includes time, billing, and accounting products like Time Matters, Billing Matters, and PCLaw.
Commenting on the deal Ralph Calistri, senior VP & general manager for LexisNexis Practice Management, said "Juris adds another market-leading product to an impressive LexisNexis portfolio of Practice Management products. Their leading position in the mid-sized law firm market and the strength of their product offering makes them a great addition to LexisNexis In keeping with our Total Practice Solutions strategy, we anticipate integrating Juris products with key LexisNexis offerings in the near future." • Marks Baughan & Co advised Juris on its sale to LexisNexis. This deal represents the most recent example of Marks Baughan's involvement in the legal technology arena. Since its inception in 2004, Marks Baughan has advised on 17 transactions within the information management and financial technology sectors. The Juris transaction is the fourth sellside transaction that Marks Baughan professionals have completed with LexisNexis in the last few years; previous deals include Applied Discovery, CaseSoft and Verilaw. |
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