The accessibility and convenience of Software as Service (or SaaS) is revolutionizing how we do business. Cloud computing makes it possible to run your company from anywhere without skipping a beat. It has made running efficient, scalable hybrid and remote workplaces easier than ever. In other words, this cloud-based software is mission-critical and responsible for keeping your organization running.
What would you do if you suddenly lost access to the web-based software keeping your business afloat? It’s critical for companies to understand how to protect their software.
Do you currently have a plan in place? If not, it’s time to learn about SaaS Escrow, a software protection service. Continue reading to learn how a legal agreement can protect all stakeholders invested in mission-critical software IP.
The Risks of Relying on SaaS
SaaS applications are powerful, and eventually, you will become dependent on the SaaS services your business relies on. Even so, trusting cloud-based software always comes with some level of risk. Most organizations can manage issues like identity management and data compliance.
The challenges begin when the problems are on the vendor side.
What if your SaaS vendor went bankrupt or failed to meet a service-level agreement? You might find yourself unable to access mission-critical functions. Likewise, sensitive client data and information could be at risk. You might even lose access to this data completely.
Even if you maintain access to basic functions, there may be no further updates or fixes to extant problems. You may lose the ability to maintain the software. Without direct source code access, there is very little you can do.
You might switch to a SaaS application with similar functions. Migration can be stressful and time-consuming, however, costing your business time and money. More importantly, losing SaaS access (and the associated client data) will cost you the trust of your hard-earned clients.
In other words, your SaaS vendor’s credibility could quickly impact your business’s credibility.
How to Protect Your Business
If you lost access to your mission-critical SaaS application, what would be the ideal outcome?
In a perfect world, you’d gain immediate access to the source code and build instructions. There would be little to no pause in service, allowing business to continue as usual.
That’s why software and SaaS escrow are such a valuable backup plan.
Having a SaaS escrow agreement in place as a licensee will ensure:
- Uninterrupted access to mission-critical SaaS applications
- Access to materials necessary for ongoing SaaS maintenance
- Continuous access to client data and information
- No lost trust with your clients
How SaaS Escrow Works
During the escrow process, you’ll enter a legal agreement with your Saas vendor. Together, you’ll determine a set of trigger conditions. These could include bankruptcy, failure to meet service agreements, or circumstances unique to your organization. Ideally, a Saas Escrow agreement is customizable.
From there, the licensor will submit copies of the source code, build instructions, data, and associated IP to the escrow agency. They will store this data in a secure manner. They will update this data at agreed-upon intervals. We’ll ensure the data on file is always up to date.
Most of the time, you will not need access to this data. Its function is predominantly protection and peace of mind. However, if the Saas licensor meets the trigger conditions, the escrow agency can release the data to the licensee. As a result, business can continue as usual.
How to Protect a Software Idea
Likewise, SaaS escrow arrangements can also protect licensors. An escrow agreement is a way to boost your credibility without sacrificing trade secrets or critical IP. Your willingness to enter an escrow agreement shows your transparency and dedication to your licensees.
Think of the escrow agent as a neutral third party. They will ensure that your IP and source code remain safe and confidential unless your organization meets the trigger conditions.
In many cases, your data will be secure in off-site physical locations. It will have the highest level of protection. This can provide peace of mind for licensors and licensees alike.
Having a SaaS escrow agreement in place as a licensor will ensure:
- SaaS source code remains safe and secret
- Code is not prematurely accessible
- Licensees cannot demand the source code without legal justification
- You lose no critical data in the event of a breach or natural disaster
- You build trust with the licensees who rely on your IP
You will mitigate risk and ensure your critical source code remains secure and confidential. Simultaneously, you’ll establish confidence with your licensees, ensuring smooth negotiations. You will also know that your data is safe with one dedicated company rather than scattered among multiple customers.
When you choose reliable SaaS escrow services, all parties involved with the software will move forward with peace of mind.
Protect Your Property With SaaS Escrow Services
Saas Escrow provides peace of mind for business owners and IP owners alike. EscrowTech will store source code and build instructions in our secure, physical two-site storage facilities. Your data will be ready to go live the moment you need access. Your business won’t miss a beat when mission-critical software and data is safe and accessible.
Discover why half of all Fortune 500 companies trust EscrowTech with their most critical data, source code, and IP. It’s time to make a plan. Contact an agent to discuss your options for protection of computer property, records, and software