What is SaaS Escrow?

Ensuring Continuity for Cloud Hosted Software

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What is SaaS Escrow?

SaaS Escrow provides secure access to a third-party cloud application crucial for maintaining a company’s business continuity. It helps prevent both short-term and long-term disruptions to the end-user’s business operations, thereby preventing financial losses, irrespective of the software vendor’s operational status.

SaaS Escrow involves a three-party agreement between the SaaS vendor, the end user, and a trusted third-party, where essential deposit materials are securely deposited and verified for completeness and usability.

In a trigger event such as bankruptcy, the software escrow vendor would release the deposit materials to the beneficiary.  Our SaaS Continuity solutions would provide the beneficiary with continuity either with access to the production environment or a deployed escrow environment managed by Escrow London for almost seamless continuity.

SaaS Escrow is similar to a source code escrow agreement but provides continuity for cloud hosted software usually hosted within AWS, Microsoft Azure or Google Cloud. The SaaS Escrow solution may include:

  • Verified SaaS Escrow – Everything you will need to recover the SaaS environment -Verified on an annual basis.
  • Software Escrow for SaaS including a deposit of all the components required to deploy the software to a cloud environment including source code, deployment scripts and databases.
  • SaaS Access Continuity – The access credentials to the cloud production environment deposited and verified for continuity.
  • Enterprise SaaS Continuity Escrow – this SaaS Escrow solution provides a redundant operating environment of the SaaS software that can be quickly spun up in the event of a release situation.

The SaaS Escrow agreement outlines the responsibilities of all the parties and includes pre-defined release conditions.

Escrow London’s SaaS Continuity Escrow solutions can be hosted in the following regions:

  • United Kingdom
  • Republic of Ireland (EU)
  • Australia
  • USA
  • Canada
  • Other regions available upon request

What are typical SaaS Escrow release events?

The release events usually include (these may be amended):

  • Insolvency;
  • Bankruptcy;
  • Discontinuing support or service of the software application;
  • Failure to support the product that is licensed to the Beneficiary and then failing to cure such a material breach within 10 days of notice;
  • Transfer of IP rights to a third party who does not provide the same level of protection provided for in the escrow agreement.

If a release event occurs, the beneficiary can apply to Escrow London to release the deposit materials, access credentials to the production environment or to deploy a functional escrow environment. The depositor has the opportunity to dispute such a release condition and if necessary, the dispute may be moved to arbitration.

What Type of Agreement Do You Need ?

We offer a range of free template agreements which provide a good starting position to negotiate a fair SaaS Escrow agreement.

What Is the SaaS Escrow Deposit?

Depositing data is a critical component of the SaaS Escrow agreement. As a leading global vendor of SaaS Escrow services, we understand that the process needs to be simple and secure.

We offer our clients two methods to deposit data with us.

git deposit

Automatic Deposit From Git

The developer can automatically upload the source code from their Git repository using SSH encryption. This process ensures that Escrow London always maintains an up to date version of the source code. We support all popular Gits including GitHub, Bitbucket, GitLab, Azure DevOps (TFS) and more.

cloud storage

Cloud Deposits

We provide all our customers with a client to securely upload their files via secure FTP to our servers. All the data is encrypted while in transit and at rest. We utilize the power of AWS and Microsoft Azure multiple-region storage to provide source code and data storage within the UK, USA, EU, Australia, Asia and other regions according to our clients’ requirements.

Looking to implement a secure SaaS Escrow solution?

Leading Companies Trust Escrow London

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