Escrow for software is a lot like the life vest under your seat on an international flight. You hope you never need it, but if the worst case scenario develops, you will be very glad that it’s in place.
Do you need it?
Yes. Why? Because it’s a smart move.
What is escrow for software?
Simply put, this is a legal agreement between you and your software developer that protects the continuity of your business in the event that something unforeseen should happen to them.
Under release conditions, specified in the agreement, you can access the software developer’s source code and other proprietary materials.
This ensures you are able to update and maintain your software product so as to protect your business continuity and ROI on the product or just buy enough time to sunset the software and find a new supplier.
How does it work?
Subject to the escrow agreement a neutral and trusted third party, like EscrowSURE, holds and tests the source code and other materials, which are deposited with them by the software supplier and which are made available to the beneficiary only in the event that a release event occurs.
What are the benefits of software escrow?
When you escrow software, you are essentially protecting yourself against the operational risk of the software company going out of business, breaching your contract, or no longer providing support.
If any of these predetermined events occurs, the source code is then released to the beneficiary and your business continues uninterrupted.