Data escrow: less known, but just as important
Over the past few months, you have seen many blogs from us regarding software escrow and SaaS escrow. You would almost think that other forms of escrow do not exist. But nothing could be further from the truth, because an escrow arrangement can also provide a solution for data. What is a data escrow and when do you need it?
We would like to explain the 2 main situations where data escrow adds value:t:
1. The data is yours but managed by a third-party
A data escrow is usually only relevant when the (important) data is managed by a third party. This is (often) the case if you use SaaS applications. Then your data resides in the cloud of the SaaS provider. For example, your accounting or customer data. Sometimes you can easily download a copy of the data, but it also happens that that option is simply not available. Then a data escrow offers a solution! Just imagine that the SaaS provider goes bankrupt or is hacked, creating a single point of failure. The only access to your data is then gone.
2. Conditional access to data
Is access to the data not desirable or possible under normal circumstances? Then a data escrow can also offer a solution. Escrow4all not only ensures that the data is technically available but also monitors the process to ensure that the lights are green to release the data. In this way, conflicting interests of different parties can be bridged.
If the data is always freely accessible, you do not need a data escrow. A standard backup facility is then a suitable solution.
Some practical examplesn
1. Data from a medical SaaS application is given in escrow. Then the important data always remains available. Even in case of a technical failure, bankruptcy, or, an exit (change of software supplier).
2. A copy of a mailbox of a departed CEO of a listed company is given in escrow. In case of a lawsuit or other dispute, the former CEO – through the escrow arrangement – receives access to the mailbox.
3. During a company takeover (M&A process), all ‘transaction data’ is placed in escrow. In the unfortunate event of a dispute, the parties involved receive an identical copy.
Stop doubting, start doing
Want to know more? Or did you get thinking about that file that should be kept by a reliable third party just in case something happens? Call +31 20 342 0250, send an e-mail or, schedule an appointment right away.
Looking for innovative escrow solutions?
Contact us now.