Security and Resilience in the Cloud: Why SaaS Escrow Matters

With more and more businesses migrating to cloud-based Software-as-a-Service solutions, the issues of security and resilience are top priorities. To harness the benefits of SaaS, many firms entrust their security entirely to the solution provider or cloud service provider (CSP). This is a serious mistake. Due to unappropriated SaaS adoption – when a firm acquires it without involvement from IT or GRC departments, many security measures and risk prevention strategies are neglected. Thus, the organizations become prone to data breaches, systems disruptions and failures, and other challenges that are on the rise in the news feed. This results in several critical questions regarding the migration of business-critical applications to the cloud and the need for SaaS escrow services to protect them:
 
1. Does Escrow complement SaaS?
 
Certainly. Due to the fact that SaaS is provided not just by the software supplier but by the CSP, both software and data are under risk. Consequently, the need for SaaS escrow is even higher.
 
2. What is SaaS Escrow?
 
SaaS escrow is the process of storing access credentials, application data, source code, and other crucial materials with a dedicated third-party escrow service provider. The access to and use of these materials in case of a SaaS provider collapse helps retain the business and operational processes.
 
3. Is my application and data secured with SaaS?
 
While the SaaS provider offers the service, the responsibility for the security and operational process of the service lay on the client’s shoulders. The so-called shared responsibility model states that the CSP ensures the cloud infrastructure’s security, while the CSP’s clients secure their data within it.
 
4. Do big SaaS vendors need Escrow?
 
Yes, they do, since even major players experience disruptions. For example, even gamers like META or worldwide marketplaces like Amazon, and social media such as X undergo service disruptions. Therefore, SaaS escrow discharge the risk of the cloud software delivery chain.
 
5. How does SaaS Escrow mix with Disaster Recovery?
 
While DR policies are indispensable, they do not cover all threats, including the insolvency of the SaaS provider. Escrow services, on the contrary, complement DR measures, reducing the supply chain menace and ensuring the operational resilience of the business.
 
The SaaS escrow market is expanding. According to the 2022 STRATEGEM Market Insights report, from 2021 to 2030, the Compound Annual Growth Rate will amount to 11.9%, with the market size expanding from US$577.3 million to US$1,540.9 million by 2030.
 
Overall, SaaS escrow is not just a safety precaution but a strategic imperative for companies operating in the cloud. While using the service of a dependable escrow service provider, a firm boosts its resilience and both secures the crucial assets and continues normal operation in a more digitalized business environment.