Bloomberg Law
Aug. 31, 2015, 10:16 PM

Legal Industry Rapidly Adopting Hybrid Cloud Stance, iManage Says

Gabe Friedman

Law firms are migrating to the cloud en masse, according to a new survey that iManage released on Monday to mark the start of the annual legal tech conference, ILTACon, taking place in Las Vegas.

The company iManage, which produces content management software for law firms and corporate law departments, said its cloud services have grown by more than 150 percent in the past year, when the total number of new customers is measured.

That growth looks even more stark when looking at the number of new users, which increased 272 percent, a surge that iManage attributed to the fact that many of the new customers are large law firms and organizations that each could have hundreds of professionals using its product.

It’s worth noting that iManage is actually talking about a “hybrid cloud,” in which law firms move some but not all their documents to the cloud, and retain the most sensitive documents on servers “on premise.”

“A hybrid architecture allows firms to take advantage of the flexibility and anytime/anywhere access enabled by the cloud, while also allowing for full management of select critical information on premise,” iManage CEO Neil Araujo said in a press release.

The company quoted one of its customers Jim Devereaux, CIO of Hinshaw & Culbertson, as saying that the cloud creates enhanced mobility and also allows the firm to update its system without having to purchase new hardware.

In July, iManage announced a management led buyout from Hewlett-Packard, which had owned it since its $11.1 billion purchase of Autonomy in 2011. Terms of the recent LBO were not disclosed.