Software Escrow

Definition of Software Escrow.

The deposit of the software's source code into a report held by a third party escrow agent. Escrow is typically demanded by party licensing software to make sure protection of the software.

The software source code is discharged to the licensee if the licensor files for bankruptcy or else fails to maintain and update the software as agreed in the software license agreement.

An escrow solution can eliminate risk and guarantee business continuity as increasing numbers of organizations in all areas of business and the public sector.

Many of my business significant applications rely on software that has been developed and is maintained by a third party developer. For any adapted software we expenses it is now standard procedure that we enter into a Software Escrow agreement with the supplier.

I'm persistently amazed by how many SMEs are still ignorant of the concept of Software Escrow - especially given the role IT plays in today’s office.