Guide & Information

SaaS Escrow

Learn how SaaS escrow protects software developers and their clients
as part of end-user licensing and service level agreements.

What is SaaS escrow?

In simple terms, SaaS escrow secures access to a running instance of a third-party cloud application that is critical to ensuring a company’s business continuity. As such, it helps avoid both temporary and long-term disruption to the end-user’s regular business operations — and consequently, prevents financial loss — regardless of their developer’s or supplier’s operational status.

In addition to the application’s ever-evolving source code, SaaS escrow can also contain data, virtual machines, manuals, credentials, and any other assets or information needed to ensure its continued viability or quick recovery, depending on the licensee’s required configuration.

Definition

SaaS escrow is a specialized software protection solution designed to protect cloud-native software applications from internal and external threats, critical errors, or incorrect configurations that can adversely affect business functions.

Who is SaaS escrow for?

It is intended for all software developers and suppliers who ship Software-as-a-Service (SaaS) applications as part of service level and license agreements, as well as their clients (end-users).

SaaS escrow typically secures root access to the application's live environment or any assets necessary for virtualizing the application in a new one. Alternatively, a risk-averse company may also deploy a standby, running copy to ensure minimal to no downtime in emergencies.

Why do developers use SaaS escrow?

Modern SaaS escrow easily integrates with agile workflows, providing software developers an easy way to meet licensing obligations, achieve compliance, and protect intellectual property (IP). It acts as a point of differentiation and gives software suppliers a competitive advantage in an oversaturated market, allowing them to provide extra value (and peace of mind) to their clients and ultimately boost profits.

Why do end-users use SaaS escrow?

Licensees (i.e., companies whose operations rely on third-party, cloud-based software applications) use SaaS escrow to protect their software in case the developer undergoes acquisition, runs out of business, or fails to meet their contractual obligations in any other way. By securing access to source code, data, and other critical assets, licensees mitigate risk and prevent disruption to critical systems.

SaaS escrow for agile companies

Discover how Codekeeper’s modern escrow solutions help leading global companies protect the software applications they need to operate critical business functions.

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How does Codekeeper help?

As a trusted escrow agent, Codekeeper’s role is to receive, store, and protect mission-critical software assets. With cost-effective pricing, you can securely store your escrow deposits in our world-class data centers for as low as $79 per month, with a start-up fee of only $249.

All plans come with cutting-edge automation technology, advanced security features, rich integrations, unlimited continuous deposits, free escrow agreements and confirmations, and more.

Expert Insights: Software Escrow Agreements

Learn everything you need to know about executing a successful software escrow agreement — from negotiating the terms to handling a speedy release and recovery.

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