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.