Guide to Software Escrow Services
When we speak of software escrow services what we mean is a source code software deposit involving a third party escrow agent.
The licensee who is in charge of the maintenance of the software is the one who requests basic escrow.
The source code of the software will be released to the licensee in the event that the licensor is unable to maintain or update the software are stated in the agreement either because of bankruptcy or any other reason.
If you are the license owner you should understand that escrow has requirements to be met. Software escrow service offer custom software to different companies which are very vital to the company itself.
Operations and the maintenance of the company software shall continue regardless of whether the licensor is not in the position to do so because of bankruptcy or other issues.
Doing this is possible if you get the updated copy of the source code. Most licensors will be reluctant to give out the source code because this represents a trade secret which is actually closely guarded.
Software escrow services then have a solution which will do away with this conflict of interest, where the source code escrow will assure that the licensed person can get his access to the source code when it has been established that the maintenance of the software cannot be assured as it was stated in the contract agreement which has been agreed upon by the two parties.
What you can benefit from a software escrow services is free software.
Before signing any contract, you need to understand what it entails so it is important to read the fine lines of the terms and conditions which are written to you in black and white.
The escrow agreement is well described and is applicable to clients who seek custom software development which generally will not be made available to the general public.
With this software design, it will only fit your needs and the needs of your business operations. When there is free software it is called open source of ransom ware.
Adopting a software escrow process is convenient for many reasons. The presence of this escrow process encourages licensees to invest in the source code. On the other hand, the company that developed the software can provide its services without exposing its secrets and intellectual property.
Escrow agents can provide optional services which can help licensees to certify the evolution of the software and maintain and upgrade functionalities over time. The licensee then has the ability to maintain an application in-house indefinitely or it gives him the luxury of taking his time until a replacement technology can be identified and implemented with a new vendor.