Is Software Escrow Right For Your Business?
Software escrow is commonly used by companies to protect their source code or their investment. Escrow services are often sought by developers when their client requests protection of the source code or the data. This requirement is often stipulated in the software license agreement between the developer and the client. Are you the end user or beneficiary? For the client or the beneficiary of the software, ensuring such protection is vital in the event that the developer is no longer around to support the software. To determine if such an arrangement is right for your business, you need to understand the risks involved if the developer ceases their activities. If such a scenario means that your company will be seriously affected, a software escrow agreement is right for you. Verification of the code or the SaaS environment is always advised for mission critical applications. A verification is an independent test by a trained expert to ensure that the source code can be rebuilt into a working application. A SaaS verification ensures that the AWS, Azure or Google Cloud Platform environments deposited can be redeployed into a working platform with an up to date database. Are you the developer? As the software developer, you want to be sure that your source code and intellectual property are always protected. Understandably, you may be hesitant to hand over your sensitive data to a third party. Large customers such as banks, insurance companies and multi-nationals often make a requirement for a software escrow arrangement within the software license agreement. In order to provide those customers with comfort it is always advisable to comply and be cooperative with the process. To ensure your rights are best protected it is advisable for you to make the decision over which escrow vendor to engage.