Year-end often is the time when lawyers who’ve been unhappy in their current employment seek to form new firms or partnerships - or change careers completely. Other attorneys consult their tax advisers to determine how to allocate their firm’s profits. Since the IRS allows a significant deduction to purchase equipment, the end of the calendar year is a good time to buy new computer components.

For firms considering upgrading some technology infrastructure, the specifications described here may be helpful. I’ll focus here on the equipment infrastructure; in a future column, I’ll discuss software tools for lawyers to be effective 21st century practitioners.

Those considering starting their own firm must be prepared for a significant financial commitment. Long gone are the days when a solo could rent a room, hang a shingle, get a desk, phone, stationery, business cards and typewriter, and meet any prospective client’s needs. Today, clients’ expectations are higher and their needs greater. They expect their lawyer to be available by cell phone in an emergency and answer less critical inquiries by e-mail. They anticipate sharing electronically in drafting documents. They want to find out more about you and your firm by browsing your firm’s website. In short, clients demand responsiveness and competence.

Lawyers too often make a huge initial investment in computers and software, then hold off staying current only to be confronted again with another huge investment. Over time, this can be more expensive as well as more disruptive when the inevitable upgrades come. Firms that make regular incremental upgrades actually spend less money in the long run on technology than those that “get their money’s worth” by waiting too long to upgrade. While that may sound backward, the fact is firms that regularly upgrade are forced to learn fewer changes between versions of their core applications than those firms that jump several versions every few years. Software vendors tend to make incremental improvements between versions. Additionally, software vendors increasingly have limited or eliminated technical support for older versions making it difficult to resolve problems when they arise.

Another big mistake new firms make is underestimating costs for implementation and training on software. Lawyers who practiced in large firms often assume they’ll be using the same software. In reality, those programs often are price prohibitive for small firms or have been customized for large firms. While the lawyers may be comfortable with e-mail, making time entries and drafting documents, most lawyers starting on their own weren’t involved in bill preparation, check writing or other administrative functions.

Dedicated server

For five people or more, the preferred way to connect computers is with a “dedicated” server. Smaller offices can manage with a peer-to-peer network that allows people to view shared files from other computers in the office. If the firm anticipates growing and the budget permits, a dedicated server would be a better initial purchase. Peer-to-peer networks, unless set up to mimic a dedicated environment by having one computer act as a “pseudo server,” can have people see files differently from different computers. They’re more difficult to back up since the information isn’t stored centrally and, in my experience, they’re also more prone to losing connections resulting in problems with the quality of the stored data. One subtle advantage of a dedicated server is being able to purchase cheaper workstations and put more power and storage into a central server along with the capability to back it up.

The leading network operating system is the Microsoft Windows 2003 server. It comes in three flavors: Windows 2003 is the basic, entry level version; Small Business standard edition includes Outlook, Exchange server technology that allows for web access to e-mail, firewall protection and remote access tools; and Small Business premium edition includes licenses for Microsoft SQL.

The two other main players are Novell’s Netware and Linux. Unless you have an excellent network vendor who can support a Linux network, a small firm on a limited budget should consider the Microsoft Small Business 2003 server. SQL is becoming an increasingly important component as more legal programs offer higher performance versions that require SQL.

Shopping habits

Consider your own shopping preferences when purchasing computers. How do you purchase a car? Do you lease one every two years or buy a used car with a bank loan? Do you buy a large car or a smaller more modest one with the expectation of trading it in within a few years? These same preferences should be part of the calculations in purchasing equipment, since you must work within your comfort zone. The goal is to get as much computer as you can for the money while trying to anticipate future needs.

Consider which components are easy to upgrade if your needs change. For example, internal memory (RAM) generally is easy to add after the fact, while swapping a too small hard drive is more difficult once your programs and data are on it. Think about whether you’re comfortable opening up a computer and adding memory chips (they typically just snap in) or prefer to pay a computer technician to make upgrades.
In shopping for computers, I subscribe to the “sweet spot” method. Finding that spot involves looking at the incremental prices between the recommended option and the one above it. For example, if the cost to double the size of a hard drive in a new computer is less than $150, it’s probably smarter to get the larger drive.

Recognize you’ll be using the computer a few years at least and the extra storage space may be needed in the future. While it may increase your initial outlay, buying a faster computer with more memory, a larger drive (especially for your server) and a high quality flat screen monitor will pay for themselves every day you use them.

Other options

Another hardware consideration is whether to purchase laptops or desktops. Much depends on the specific needs of the attorneys. Increasingly, lawyers with computers at home can remotely access their office computer through internet based programs like GotoMyPC, eliminating the extra expense for a laptop or the need to synchronize files.

Printer options have changed now that they’re combined into digital copiers that, in addition to serving as central printers and photocopiers, can be configured as network scanners. Lawyers in small firms shouldn’t assume these are beyond their budget. Three year leases for small digital copiers can cost about $125 per month.

Monitors, too, have changed. Spend the extra money for high quality flat screen monitors for the entire staff. Removable storage options are another recent development that provides more ways to make information portable. Systems can be configured without floppy disk drives. Instead, get either CD writers or DVD writers, or USB hard drives to copy important files as an additional backup.

Keep in mind that in addition to purchasing equipment, you’ll have expenses for software, labor and consulting fees for customizing or training your staff. You’ll also need to budget time to move data from old computers or assist with the inevitable bumps during the early days of your new firm or upgrade. And, of course, make sure there’s enough cash to get through those rough spots.

Carol L. Schlein is president of Law Office Systems in Montclair, a training and consulting firm specializing in law firm automation. Copies of previous columns are on her company website, www.losinc.com. For information about her quarterly meetings for Time Matters users, check the website or e-mail info@losinc.com. Schlein formerly chaired the Computer and Technology Division of the ABA Law Practice Management Section.

Questions for Carol L. Schlein on law office technology may be faxed to New Jersey Lawyer at (732) 650-7010, e-mailed to news@njlnews.com or mailed to “Law Technology Questions,” New Jersey Lawyer, Edison Square, 2035 Lincoln Highway, Suite 3005, Edison, N.J. 08817.