The free-market economist Milton Friedman popularized the phrase “there is no such thing as a free lunch”.
The same theory applies when establishing a Software Escrow Arrangement.
The reason for establishing and Escrow Agreement is for protection. With access to the Technology Vendor’s source code, a Licensee can maintain and enhance the software in the event that an unanticipated and/or catastrophic occurrence does not permit the Technology to continue its operations. An escrow account is similar to that of taking out an insurance policy in order to safeguard the rights you have to a licensed product.
Investing in a Software Escrow Arrangement may not be a priority to your organization if you can easily swap out the “now defunct” vendor’s IP with another vendor’s solution. However, it’s another story when the “now defunct” vendor’s solution is responsible for a mission-critical application installed and implemented in your environment. As it relates to this scenario, the cost of establishing an Escrow Arrangement is minimal compared to that of installing & implementing another vendor’s solution.
NSE will prepare a professional, simple-to-understand quote that will clearly identify the fees associated with its services. Having that knowledge, your organization can then make a decision whether or not an Escrow Arrangement makes financial sense, relative to the cost associated with replacing a “now defunct” vendor’s solution with another.
Why do you Need the Services of a Software Escrow Agent?
End-User-License-Agreements grant users access only to the object code for the software. This is the form of the code that is only executable, the user has no rights over the source code. In commercial software licensing, the licensee may require access to both the object code as well as the software source code. This is essential to ensuring that their business processes can continue if anything were to happen to the software company. When the licensee can access the source code, they can perform essential functions and even change the code to modify the software’s operation if needed.
Consider the situation where your software vendor goes out of business. This means that the software is not supported anymore. If the software is critical to your business, then your business will be affected. Software escrow services help you overcome such potential disasters. The software escrow agreement assures the Licensee that their operations will continue unhindered.
To ensure your business continuity, we store the source code in-house and offline in our data center vaults. We also have the option to save your source code in our SSL protected cloud environment. Read more about our Escrow Management services.
Contact National Software Escrow Today
Businesses today are dependent on software like never before. It runs most of the necessary functions for businesses including payroll, customer relationship management, and sales. However, unforeseen situations can arise at any time. Your software vendor may go out of business, the software may lose support, and updates may stop.
Software escrow services can help you overcome any negative situations that can harm your business. It not only provides a guarantee to Licensees but also helps Software Vendors gain trust and close deals. Make sure you go with a suitable escrow service provider like National Software Escrow. We ensure that your source code escrow needs are fulfilled and your business stays on track. Reach out to NSE today and take advantage of our software escrow services.