Why Escrow Matters
Supplier failure is an evolving risk
Today’s organisations depend on more third-party software than ever before. Cloud-hosted SaaS applications, AI platforms, APIs and specialist technology providers now underpin critical business operations, creating greater dependency on suppliers outside your direct control. At the same time, software vendors face an increasingly challenging landscape, with fluctuating interest rates affecting access to funding, greater funding concentration, lower barriers to entry creating intense competition, rapid technological change driven by AI, and ongoing geopolitical uncertainty. As organisations consolidate around fewer strategic technology providers, concentration risk continues to grow, meaning the failure or disruption of a single supplier can have far-reaching operational consequences.
Our Software Escrow services help mitigate these evolving risks by ensuring your organisation can maintain continuity, regardless of what happens across your technology supply chain.
Beneficiary Benefits
When to utilise software escrow to reduce risk?
Securing critical applications and assets
Losing access to a critical business system can have serious consequences, including lost revenue, operational disruption and reputational damage. A robust continuity plan helps ensure your organisation can recover from unexpected events. If your software vendor were unable to provide service, would you still have access to the application, your data and the tools needed to continue serving your customers?
New outsourcing relationship or partnership
Working with new supplier or partners can be daunting and requires resources from both sides to ensure a new software system is successfully onboarded. Rather than get creative about assessing a vendors financial performance to assess their longevity, build a trusted partnership and peace of mind that the technology will be available to you regardless of your suppliers performance with a tested recovery plan.
Comply with external regulations for operational resilience
Regulatory expectations are increasing for financial institutions that rely on third-party technology providers. Ensure you have tested continuity, exit and recovery plans in place to maintain critical services in the event of supplier disruption or insolvency.
Internal governance and standards
Better manage your key software suppliers and partners with a commonly used framework to mitigate supplier failure risks.
Cloud migrations (On-prem to SaaS)
Moving from an on-premise or legacy system to a cloud-hosted solution increases reliance on your software supplier. In addition to the application itself, you are trusting the provider to maintain the availability, security and integrity of both the hosting environment and your data, introducing new operational and continuity risks that must be managed.
Develop and test exit plans
We all want a successful project, but what happens if your vendor doesn’t deliver, runs out of cash or sells to your competitor? Ensure you have a tested recovery and exit plan just like any other disaster recovery plan.
Trusted by 1000'S of software developers and industry leaders alike
Process and Onboarding
How to incorporate software escrow into your licencing model?
Whether you’re onboarding a new supplier or reviewing third-party risk management policies for compliance, software escrow offers a straightforward way to strengthen resilience as part of a comprehensive risk management framework for when a vendor is unable or unwilling to deliver services for you.
Identify Your Software Escrow Requirements
Identify a vendor and specific risks that needs addressing such as potential failure, insolvency, company sale or discontinued products – often incorporated within a risk register or service catalogue.
Select the Right Software Escrow Solution
Speak to our team to align a relevant software or SaaS escrow solution to mitigate business led risks and challenges.
Incorporate Software Escrow into Your Licence Agreement
Review the software escrow service terms and conditions with your vendor, and ensure a software escrow clause is included in your licence agreement.
Deposit and Verify Your Escrow Materials
Agreed materials deposited and verified for completeness and usability ready to be accessed and used if the software escrow service is triggered.
Trigger the Software Escrow Agreement
If a defined release event occurs, The Escrow Company validates the trigger conditions and releases the verified materials in accordance with the agreement, enabling your organisation to maintain, recover or transition the software with minimal disruption.
Testimonials/case studies
Customer Success Stories
Discover what our clients have to say about their experience partnering with The Escrow Company.
Important Considerations
Choosing The Right Software Escrow Provider For Your Business
Not all Software Escrow providers offer the same level of protection. When evaluating a provider, look beyond simply storing Source Code and consider their technical expertise, verification capabilities, cloud and SaaS experience, security credentials, financial protection and ability to support continuity when it matters most. An experienced provider should offer flexible Software and SaaS Escrow solutions, independent verification services, automated deposit options, recognised information security standards such as ISO 27001 and ISO 27017, and the technical capability to support modern cloud-hosted applications. It is also important to understand the provider’s professional indemnity and liability cover, ensuring it reflects the value of the software and the risks being protected. The Escrow Company combines all of these capabilities with one of the highest levels of included escrow liability cover in the market, giving both software vendors and beneficiaries confidence that their continuity strategy is backed by a provider equipped to deliver when it’s needed most.
FAQs
Explore our frequently asked questions to find answers tailored for software vendors and developers.
How to get started?
Getting started is easy! Simply contact us for a call. Our team is here to assist you at every step.
What support is available?
We offer guidance through various channels including live chat, email, calls and a dedicated support team for customers. We’re committed to ensuring your success. Don’t hesitate to reach out for assistance.
What fees are involved?
Our pricing structure is transparent with no hidden fees. You can choose from various plans based on your needs and either party can pay our invoices. Review our pricing page for further information.
What are the typical release events?
It’s important to consider business led challenges such as supplier insolvency, breach fo contract, company sale, rogue employees or other situations outside of the traditional technical and security led supplier assessments.
How do I raise this with my supplier?
Too often, software escrow is misunderstood as a sign of distrust or a legal “box ticking” exercise. In reality, it’s a risk management mechanism and business enabler. A good way to start the conversation might be: “As part of our business continuity planning, we’re reviewing how we manage supplier risk across critical systems. We’d like to explore a software escrow agreement, as we see this relationship growing long-term and the system is vital to our operations. Building resilience into strategic partnerships is essential”
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- Specialists in risk mitigation for cloud hosted applications
- Global footprint with offices in London, UK, Atlanta, USA, and Sydney, Australia