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Gaining the most from software escrow

Published on 07 November 13
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Software escrow is an increasingly important and common form of escrow. This is because the business need for software is always there and, as such, so is the need to protect your own assets.

This service does just that, but it always helps to know the many ways in which it is useful. More than a back-up plan, you can get the most out of software escrow if you're aware of its many other benefits and uses.

Motivation

At its foremost, escrow can best be used as a form of motivation. In software escrow, the simple risk of losing source code or other sensitive information is enough to encourage any software provider to offer a working product.

The difference between this and acting under the normal SaaS agreement is the threat of direct and responsive action. Escrow agencies don't engage in long, overdrawn disputes â as they have the legal power to hand over the code when relevant â meaning companies can't hide behind lengthy processes.

Trust

As a result of this motivation, the use of escrow can encourage trust. This is a simple argument stating that, given the risks of losing source code involved, such a company willing to enter into escrow is obviously confident in their abilities to meet the right conditions.

On the other hand, a company that is unwilling to utilise such a service should be flagged as an obvious risk. If they are not willing to use such an agency, then that suggests they expect a strong chance of failure â as such, why should you justify trusting something that could influence your business with them?

Verification

On the issue of trust, verification can often go a long way to help build this. Even when you have an escrow arrangement with the provider, a decent agency will offer the chance to verify whatâs in holding. Whilst you may know there is code, this will help determine that the code is what it needs to be â such as the most up to date source code for the license that you have.

This, essentially, offers a little extra peace of mind. Even when you know the code is in holding, verification does exactly what it says - verifies what the code is. This way you don't risk finding something to be missing or incorrect when you finally get your hands on the data.

In short, such escrow options combined with escrow verification services help to offer better peace of mind, as you can be sure everything is in place should anything ever happen.

Software escrow is an increasingly important and common form of escrow. This is because the business need for software is always there and, as such, so is the need to protect your own assets.

This service does just that, but it always helps to know the many ways in which it is useful. More than a back-up plan, you can get the most out of software escrow if you're aware of its many other benefits and uses.

Motivation

At its foremost, escrow can best be used as a form of motivation. In software escrow, the simple risk of losing source code or other sensitive information is enough to encourage any software provider to offer a working product.

The difference between this and acting under the normal SaaS agreement is the threat of direct and responsive action. Escrow agencies don't engage in long, overdrawn disputes â as they have the legal power to hand over the code when relevant â meaning companies can't hide behind lengthy processes.

Trust

As a result of this motivation, the use of escrow can encourage trust. This is a simple argument stating that, given the risks of losing source code involved, such a company willing to enter into escrow is obviously confident in their abilities to meet the right conditions.

On the other hand, a company that is unwilling to utilise such a service should be flagged as an obvious risk. If they are not willing to use such an agency, then that suggests they expect a strong chance of failure â as such, why should you justify trusting something that could influence your business with them?

Verification

On the issue of trust, verification can often go a long way to help build this. Even when you have an escrow arrangement with the provider, a decent agency will offer the chance to verify whatâs in holding. Whilst you may know there is code, this will help determine that the code is what it needs to be â such as the most up to date source code for the license that you have.

This, essentially, offers a little extra peace of mind. Even when you know the code is in holding, verification does exactly what it says - verifies what the code is. This way you don't risk finding something to be missing or incorrect when you finally get your hands on the data.

In short, such escrow options combined with escrow verification services help to offer better peace of mind, as you can be sure everything is in place should anything ever happen.

This blog is listed under IT Compliance & Audit Community

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