Do I need to verify my software escrow deposit?
What would be the best choice for you; a more traditional source code escrow or an automated solution. In this chapter we will go over both and their unique properties so you can choose the right one for you.
A more traditional source code escrow service was originally intended for a traditional software product, which is different from today’s software in many ways, but most significantly in that it is downloaded to hardware and updated on a periodic, scheduled basis — typically once or twice a year
This frequency was enough back in the day because the actual source code only really changed one to two times per year. So if a beneficiary was eligible for an escrow release, they were likely to get the most recent source code.
Traditional escrow agents tend to employ the waterfall development model, which is a “far less iterative and flexible approach, as progress flows in largely one direction ("downwards" like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, deployment and maintenance.”
Besides being less iterative and flexible, as a more labor-intensive solution, this approach is also much slower and significantly more expensive. This is especially true when a traditional escrow provider takes on SaaS companies as clients, who innately have greater needs — especially in terms of ongoing updates. This means the escrow agent has to perform more services and dedicate more resources and workers to meeting their SaaS customers’ needs.
One way in which this manifests is with deposits. It’s not uncommon to see considerable additional charges for licensors whenever it’s necessary to deposit a new version of a software; or for end-users, whenever they need to access new features and functionalities.
In the same vein, the backup and storage of data are not likely to be addressed in a traditional source code escrow agreement. Having access to the most up-to-date source code, as well as all accompanying materials and data necessary for a successful recovery, is a prerequisite to a successful software escrow relationship. From the perspective of the end-user, this is an absolute must-have for any source code escrow agreement today.
Needless to say, traditional software escrow solutions were not designed for the agile software development methods that we see in SaaS environments today, where software is updated on an ongoing basis. Should the software supplier or the customer ever need to rely on the source code being up-to-date, a traditional solution would typically not be the most effective way of escrowing software.
Table of contents:
We get it! Working with a supplier can be anxiety-provoking; you’re putting someone else in control of a major component of your business, your software.
Luckily, 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…
Table of contents:
Comprehensive software escrow services protect the interests of technology developers, as well as the businesses that purchase their products or subscribe to their services. Let’s take a closer look.
As a software developer or vendor (licensor), you should consider offering a software escrow agreement with your license, but also, whether or not your clients require one. In today’s age of digitalization, they most likely will.
Not to mention, offering an escrow agreement to your clients can give you that extra bit of leverage in agreement negotiations. Software escrow is often referred to as “the great sales enabler” for that exact reason. It creates a sense of partnership and trust while eliminating a very common hurdle to sealing deals with your clients.
If your development agency is in it’s startup phase, software escrow services can help establish credibility among your clients and prospects, while positioning yourself on par with bigger, more established competitors.
However, it doesn’t matter whether you’re new to the market or a seasoned veteran, escrowing software sets you apart from your competitors. In today’s saturated market, developers can use all the edge they can get.In return, software escrow protects your intellectual property rights and helps you avoid courts and litigation. Having to worry about litigation is not only a major nuisance, but it also costs a lot of money, a lot more than a cost-efficient software escrow solution would cost you.
Table of contents:
A source code escrow agreement is 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 on how to negotiate a balanced source code escrow agreement.