---
title: "Australian tech insolvencies surge: Why you need software escrow for business continuity"
description: Learn why software escrow has become essential as Australian tech insolvencies rise by 33%. Discover how to protect your business operations when critical software vendors fail.
canonical_url: https://codekeeper.co/articles/software-escrow-for-australian-tech-insolvencies
---

[Software escrow](https://codekeeper.co/articles/tag/software-escrow) | [Software continuity](https://codekeeper.co/articles/tag/software-continuity)

# Australian tech insolvencies surge: Why you need software escrow for business continuity

Learn why software escrow has become essential as Australian tech insolvencies rise by 33%. Discover how to protect your business operations when critical software vendors fail.

![Mari Jordaan](https://codekeeper.co/hubfs/Codekeeper%202025/Blogs/author%20-%20mari.png)

By [Mari Jordaan](https://codekeeper.co/articles/author/mari-jordaan)

Last updated: Jul 24, 2025

Share [![Share on facebook](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Facebook.svg)](http://www.facebook.com/share.php?u=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20X.svg)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Mail.svg)](mailto:?subject=Check%20out%20https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Demail) ![Copy link](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Copy.svg)

ON THIS PAGE

### Want more insights like this?

Subscribe to our newsletter to get the latest software protection strategies delivered to your inbox.

Subscribe Here!

By submitting your email, you consent to Codekeeper contacting you and agree to our [privacy policy](https://codekeeper.co/privacy-policy) .

The Australian business landscape is in crisis. The [latest data from the Australian Securities and Investments Commission (ASIC)](https://asic.gov.au/regulatory-resources/find-a-document/statistics/insolvency-statistics/) shows over 11,000 companies entered external administration in FY2023-24 — a 39% increase from the previous year. Even more concerning, experts project this number will climb to 14,000 companies in FY2024-25. But one sector is feeling the pressure more intensely than others: technology. Tech company insolvencies jumped 33% from February 2023 to February 2024. This trend is accelerating, with another 23% increase projected by February 2025. These aren't just statistics — they represent real businesses collapsing and leaving customers in perilous situations. When tech vendors fail, businesses suffer When even mid-sized tech providers go under, the effects ripple throughout the economy. Recent failures include: [**Euclideon**](https://www.afr.com/technology/aussie-tech-firms-under-increasing-insolvency-threat-data-shows-20240216-p5f5ig) : Their 3D visualization technology supported multiple industries, including mining and urban planning. [**Plutora Australia**](https://www.news.com.au/finance/business/other-industries/aussie-tech-company-on-the-brink-with-37m-owed-to-creditors-administrators-appointed/news-story/b41628a6af781e43107ed623909da6a9) : Their IT management tools were embedded in enterprise operations nationwide. [**Redback Technologies**](https://www.pv-magazine.com/2024/03/08/redback-technologies-goes-into-voluntary-administration/) : Their innovative energy storage solutions left customers with unsupported hardware. [**Emerson Media**](https://www.news.com.au/finance/business/technology/aussie-techmedia-company-collapses-owing-12m-after-only-making-four-sales-in-four-years/news-story/716e22de4abb61073d397488556490c5) : Their custom software solutions went dark when they closed doors. These failures reflect broader economic pressures: interest rates at 12-year highs, a venture capital drought, persistent inflation, and the aftermath of pandemic overhiring. NSW (4,634), Victoria (2,862), and Queensland (2,036) have seen the highest numbers of company failures. The risk most businesses see too late When a software vendor fails, their customers face an immediate crisis. Critical systems suddenly become: Unsupported and vulnerable to security threats Unable to receive updates or bug fixes Impossible to modify for changing business needs Completely inaccessible if hosted by the vendor Most companies discover these risks after their vendor has already filed for administration. The typical response involves costly consultants, legal battles over IP rights, and scrambling technical teams — all while operations deteriorate. Why software escrow has become essential, not optional Software escrow was once considered rarely-needed insurance. That's changed dramatically. Most escrow providers now handle a few trigger events monthly, compared to just one or two annually before the economic downturn. What exactly is software escrow? Software escrow creates a legal arrangement where a neutral third party holds critical software assets in trust. If specified release conditions occur — such as vendor bankruptcy — these assets become available to the customer, ensuring business continuity. But [modern software escrow](https://codekeeper.co/software-escrow) goes beyond simple source code storage to include: Complete application environments Cloud deployment templates Database structures and content API documentation Configuration settings Runtime dependencies This comprehensive approach ensures you can actually use the software, not just possess its code. 5 ways software escrow protects Australian businesses 1. Ensures operational continuity When a vendor becomes insolvent, customers with escrow agreements maintain access to their critical systems. This prevents the operational nightmare of suddenly losing access to essential business tools. 2. Provides leverage in acquisition scenarios Vendor acquisitions frequently result in product discontinuations or forced migrations. With escrow protection, you gain negotiating leverage and time to plan transitions on your schedule. 3. Protects intellectual property investments Many Australian businesses invest heavily in customized software. Escrow ensures this investment remains accessible even if the vendor disappears. 4. Ensures regulatory compliance Australian businesses in financial services, healthcare, and other regulated industries must demonstrate business continuity plans to regulators. Software escrow provides documented evidence of these plans. APRA specifically mentions "third-party dependencies" in their operational resilience framework ( [CPS 230](https://codekeeper.co/solutions/cps230) ), which software escrow directly addresses. 5. Strengthens vendor relationships Contrary to common misconception, escrow doesn't signal distrust. It demonstrates mutual commitment to business continuity and establishes clear expectations. Our clients report that proposing escrow actually strengthens vendor relationships by showing serious commitment to the partnership. How modern software escrow works Codekeeper's escrow solutions offer sophisticated protection far beyond traditional source code vaults: **Customized agreement creation:** A three-party agreement between your business, the software vendor, and us establishes clear terms and release conditions tailored to your specific risks. **Comprehensive deposit automation:** We offer [automatic integration with 50+ development platforms](https://codekeeper.co/integrations) like GitHub, Azure DevOps, and AWS to ensure deposits stay current without manual effort. **Verification testing:** [Regular verification](https://codekeeper.co/verification) ensures the deposited materials actually work. This includes build testing, functionality verification, and documentation reviews. **Secure storage with monitoring:** Materials are encrypted (AES256/512), access-controlled through multi-factor authentication, and continuously monitored for completeness. **Release processing:** If release conditions occur, 24/7 event processing ensures timely access to escrowed materials with expert support for transition. **» Learn more about [Codekeeper's state-of-the-art escrow solutions](https://codekeeper.co/products) for modern businesses** Protect your business in uncertain times As tech insolvencies continue to rise in Australia, proactive businesses are taking steps to protect themselves: Consider software escrow as essential infrastructure, not optional insurance Implement comprehensive protection that goes beyond source code Include escrow requirements in all new vendor contracts Verify escrow deposits regularly to ensure they actually work Review and update release conditions to match current business needs The companies that survive during this period of vendor instability will be those that planned ahead. Don't wait until it's too late Most companies implement software escrow only after experiencing a vendor failure. Learn from their costly lesson. With tech insolvencies projected to rise another 23% next year, the time to act is now. Our team offers free software risk assessments to help identify your critical dependencies and develop a protection strategy tailored to your needs. **» Book your [free software risk assessment](https://codekeeper.co/risk-assessment) today** _Is your business prepared for the software vendor insolvency crisis? [Contact our escrow specialists](https://codekeeper.co/book-a-demo) to learn how our comprehensive protection solutions safeguard your operations against the rising tide of tech company failures._

Share this article [![Share on facebook](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Facebook.svg)](http://www.facebook.com/share.php?u=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20X.svg)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Mail.svg)](mailto:?subject=Check%20out%20https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fcodekeeper.co%2Farticles%2Fsoftware-escrow-for-australian-tech-insolvencies%3Futm_medium%3Dsocial%26utm_source%3Demail) ![Copy link](https://codekeeper.co/hubfs/Codekeeper%202025/Icons/Blog%20-%20Copy.svg)

![blog_book_a_demo_cta_3x](https://codekeeper.co/hubfs/_sized/Codekeeper%202025/blog_book_a_demo_cta_3x-768x512.webp)

Have questions about protecting your software?

Our escrow experts are standing by to help.

[Book a free demo](https://codekeeper.co/book-a-demo)

YOU MAY ALSO LIKE

[Software escrow Iron Mountain's software escrow: Why it's gone, and where to look now Sep 29, 2026](https://codekeeper.co/articles/codekeeper-vs-iron-mountain)

[Software escrow How software vendors use SBOM and escrow to win enterprise deals Jul 6, 2026](https://codekeeper.co/articles/how-software-vendors-use-sbom-and-escrow-to-win-enterprise-deals)

[Software escrow SBOM and software escrow: Why you need both Jul 13, 2026](https://codekeeper.co/articles/why-you-need-an-sbom-and-software-escrow)

[Software escrow A guide to software vendor exit planning Jul 6, 2026](https://codekeeper.co/articles/a-guide-to-software-vendor-exit-planning)