Safeguard Your Business in the Age of Insolvencies with Software Escrow Copy

Mar 15, 2022

Global Business Insolvencies: a warning call for businesses using services based on software by third parties Who are the most relevant sources of information for capacity planning, dependency analysis and ultimately software escrow agreements to protect an end-user from a SaaS disapp-pe-arance on your watch?

The Looming Insolvency Crisis
Leading global Economic experts said there would be a large rise in company insolvencies worldwide over 2022 and the following year, countries in Africa as well as Central & Eastern Europe set for especially difficult times. This poses significant risk for the:

SaaS applications
Licensed software
Managed cloud computing Service
Should the provider go under, these organizations could be cut off from important services with potentially devastating effects.

Simple, Inexpensive solution - Software Escrow

Software escrow is a simple inexpensive way to manage that risk. Here's how it works:

Your business critical software (developer version) will be kept safely and securely with an independent escrow agent

In a software escrow agreement, it states how:

Supplier rundown the code's deposit
So the business user can look at the code.
Finally the integrity of your code deposit is checked.

Benefits of Software Escrow
Software escrow gets you the following:

As Business Continuity: In the event that your provider ceases operation, you still have the source code to find a new supplier who can keep and support. After all.
Escrowed code is evidence of ownership, potentially helping out in legal disputes.
A Necessity for Trust: Software Escrow
As such, software escrow is no longer a nice-to-have for companies that depend on third-party software expertise. This is an essential thing to hedge risk and continue the business under uncertain economic conditions.