The cloud is changing the way that software applications are delivered to clients. The rise of virtualisation and the plummeting cost of data storage have enabled software vendors to create technologically advanced cost effective SaaS (Software as a Service) solutions.
SaaS is a software distribution model in which applications are hosted by the supplier and then made available to customers over a network, typically the Internet. A user subscribes to the software instead of hosting the software on own infrastructure.
SaaS Escrow Agreements
SaaS is showing strong growth within the software market. Research published by Forrester (2011) concluded that “SaaS offerings will grow from 7% of total software revenues in 2010 to 17% in 2013”. Despite this, businesses are still showing caution when it comes to adopting SaaS within their organisations.
The major difference between SaaS and on-premise server based applications is the management of data. Historically you will have had total control of all your data, as it will have been stored in a database connected to your server. SaaS is different; all you data will be stored in the cloud and will be managed by your service provider. The reliance on the SaaS provider for access to data as well as the application represents an element of risk to all users that must be addressed.
SaaSe agreements are used to ensure the continued use of critical business software systems and access to data that is hosted in the cloud. The SaaSe agreements offer great benefits to both the provider and the user.
- Download the SaaS-Escrow-Agreement-Template.
Benefits to the SaaS Vendor:
- SaaSe agreements provide your clients with a confidence in your service while protecting their critical data.
- It can present a competitive advantage as SaaSe is fairly new to the market.
- Help you to overcome the perceived risks associated with SaaS applications.
- The customer will gain access to their data.
- Our escrow agreements can protect more than just source code; we are able to structure our agreements to protect client data and our secure FTP facilities’ use ESTS & ESTP protocol-level security.
Benefits to the SaaS User:
- It protects your critical data and helps you to gain access to your data should a critical event occur.
- They mitigate the risks that are inherent when an organisation relies on third party technology vendors.
- By arranging a SaaSe agreement you are taking responsibility for your business continuity and ensuring that the SaaS you rely on is always available.
Are you a SaaS vendor or user looking for an escrow agreement? To read more about SaaS escrow agreements click here.