If you’re a SaaS company and you’ve been in business for a few years now, you may have already come across a prospective business partner who was pretty insistent on the inclusion of a software or source code escrow agreement as part of the license terms. Eager to close the deal you’ve been negotiating laboriously for weeks or months, you now need to figure out how to give your client what they want while finding a way to save resources — whether it’s time or money.
If, on the other hand, you’re a company looking to gain a competitive advantage by using new technology and automating your business processes, you may be outsourcing the development of said technology (i.e., software application) to an emerging software company. And if that company is not quite established or profitable yet, you may now be considering minimizing the risk for your own company with a software escrow agreement.
Tags: Source Code Escrow
Although software escrows have been used since the 1970s, they are increasingly becoming more common and necessary practice for modern enterprises. As a result, there are a number of software escrow solutions on the market today, and some of them have been around for decades.
However, not all software escrow providers offer the same services, the same level of quality and security, and the same ease of use. And then there’s pricing, of course, which is an important aspect in and of itself.
So whether you’re a licensor or licensee on the hunt for your next software escrow, it’s important that you examine all of these factors to be able to choose a solution that meets your needs while providing top-notch security and flexibility.
Tags: Source Code Escrow
Software verification is an essential step in the process of deploying new and updated software. This article goes over what exactly software verification is, how to know if you’re doing it and doing it properly, and how to recognise your own inefficient practices and turn them around for better deployments.
Let’s get started with pinpointing precisely what is meant by software verification.
What is software verification?
Some people get software verification confused with software validation. But not exactly the same thing. Each of them is a component of software testing.
Software validation is the process of evaluating software towards the end of the development process in order to determine whether it satisfies specified business requirements. Software verification, however, is the process of evaluating the in-work product at specific development phases in order to determine whether it meets the specified requirements for that phase.
Put simply, software verification is asking yourself the question, “Are we building the product right?” It’s something you should be doing along the way. Or in other words, software validation is comparing what you built to the requirements you set for the product. Software verification is about analysing the process you used to build your software. So how do you determine that?
Here’s our take on it.
Working with a supplier can be anxiety-provoking. We get it. You’re putting someone else in control of a major component of your business — your software.
But there are ways to ensure that both you and your suppliers feel safe about your partnership.
Don’t want to worry about what happens if the software vendor goes out of business?
Concerned about not having access to the source code and other materials you need to maintain and update your software?
Don’t want to think about what could happen to your business if your supplier discontinues the maintenance and support of the software?
No worries. We’ve got the insider secrets you need to get the best out of your software suppliers…
Utilise a source code escrow service
You’ll be thankful that you did this. It’s important insurance when working with a supplier. A source code escrow service acts as the third-party intermediary for software licensing agreements.
All those concerns you had about working with a software vendor? Source code escrow resolves those, so you don’t have to worry about them.
You see, the escrow service helps you set up a legal agreement between your company and the supplier that states exactly what happens if one of those risky events occurs. If your supplier goes out of business, that triggers the release of the source code and other materials to you as the beneficiary of the code. If your supplier has to discontinue maintenance and support of the software, that triggers the release of the source code and other materials to the beneficiary of the code.
With source code escrow services there are no worries that you’ll be left without the data and resources you need to continue utilising business-essential software applications.
A source code escrow agreement it’s beneficial to both the supplier and the beneficiary. But these two parties can at times appear to have opposing needs, that’s why it’s important to make sure that your licensing agreement is balanced.
Fortunately, that’s exactly what source code escrow services are for. At CodeKeeper, we have both the technical and legal expertise to ensure that your licensing agreement is secured.
We protect the interests of both the software vendor and the licensee.
Based on our experiences, here are our top tips for how to negotiate a balanced source code escrow agreement.
#1 Going into negotiations, be aware of the benefits to you
A source code escrow agreement can protect the interests of both parties, as mentioned. For the beneficiary, the reassurance that they will not experience a business interruption in case the software vendor is no longer maintaining or updating the code.
For the software vendor, utilizing a source code escrow agreement makes it easier to gain their client’s confidence. If you are a supplier that is known for being easy to negotiate with, you can develop a good reputation going forward and make future sales easier.
Additionally, as a software vendor, if you find the right third-party escrow service, you can use that same agent for all of your customers’ escrows, keeping them all in one place, easy to access and manage.
Are you aware that you need to implement software escrow in your licensing agreements, but don’t know the best way to start? Then this is exactly the article you need to read right now.
Below you will find information on what a software escrow is, why you need them in your licensing agreements, and the best way to use them.
What is a software escrow?
Software escrow is a service to help protect all of the parties involved in a software license. The service is offered by a third-party that acts as a neutral agent to hold the source code, data, and documentation. The licensing agreement typically defines a mutually-agreed-upon event that triggers the release of information from the software escrow to a legally entitled party.
You can learn more about how a software escrow works by visiting the Codekeeper website.
Are you thinking about outsourcing, but concerned about whether it will be effective or cost-efficient? That’s understandable. Many managers and business owners grapple with whether outsourcing is the right choice for their company.
Fortunately, other companies have made their decisions about whether to outsource, and they can share their experiences with you.
This article takes a look at one company that saved over $50,000 by outsourcing some of their work, as well as how you can get started on the same path to savings and efficiency.
Ovia Health saved $50,000 by outsourcing bookkeeping services
It’s no secret that in order to grow and reduce costs, companies need to be able to automate as many processes as possible. This is true of development processes as much as it is of other business processes.
For Ovia Health, their accounting department was getting stuck with manual tasks. They enlisted the help of an accounting automation solution called Bookkeeper, and the service costs them a fraction of what it would cost to employ full-time accounting personnel.
According to the company, the investment for new accounting software would have been about $50,000 for just the first year, plus the cost of hiring another bookkeeper to manage it.
You can realise the same kinds of savings by outsourcing development.
If you’re thinking about outsourcing your development, you must be wondering how to keep your data secured.
Data breaches are a real danger that can lead to fines and damaged reputation. It's very important to understand how your data is being handled by everyone you work with. Especially when working with agencies in different countries where the laws may be different.
This article gives five tips on securing your development outsourcing. These tips include protecting your intellectual property (IP), asking about security certifications, limiting privileges, making an airtight agreement, and preventing breaches.
Protect Your Intellectual Property
Before outsourcing your development, you must be familiar with intellectual property laws. If you’re outsourcing out of your country, you also need to review the intellectual property protection laws in that country too.
Then you can discuss intellectual property policies with your selected agency. You want to make sure they understand the laws and that they follow the rules. Ask about their security measures around intellectual property protection. For example, do their employees sign non-disclosure agreements (NDA)?
The agency should be able to provide these details in-depth. If not, take it as a red flag. You can also discuss discrepancies and have your lawyer add this to your contract.