- Best Practice (18)
- deposited material (9)
- Developer Escrow Agreement (5)
- G-Cloud (5)
- green technology (1)
- ISO 9001 (11)
- MirrorWeb (1)
- Saas (13)
- Software (16)
- Software Escrow (30)
- Software Escrow Agreement (20)
- Software Escrow Cost (6)
- source code (9)
- Source Code Escrow (14)
- Technology (3)
- TES – Directors (1)
- total escrow solutions (3)
- Uncategorized (5)
- Website Security (1)
Software Escrow: Why take the risk?
November 15, 2011
Why do companies take the risk when relying on other companies to provide technology?
- Unaware of the risks
- Don’t realise that they depend on someone else
- Don’t like to think about other companies success or failure
- Think they can cope without the technology
If any company relies on another company to ensure delivery of services then they should have an escrow agreement to protect the relationship. I think we can safely say that most companies in the world use proprietary software.
If you don’t have an escrow agreement you are taking unnecessary risks and no business can afford to take unnecessary risks. You can of course use open source but this bring its own risks.
Escrow agreements lock away the technology you rely on, and store it with an independent third party. Should a critical event occur to your supplier then you can access their technology to ensure your business continuity.
Escrow agreements are the only way of gaining legal rights to use the IP of another company to maintain your ability to deliver to your clients.