From Nice-to-Have to Must-Have: Escrow in the New IT Landscape

In today’s fast-changing digital era, software has become the beating heart of almost every organization. What was once seen as a “nice extra layer of security” has now evolved into a strategic necessity. Escrow agreements—long regarded as an optional safeguard—are shifting in the new IT landscape to the level of essential business continuity. But why is that? And what does this mean for organizations that rely on (cloud) software?

 The changing reality of IT

The way software is developed, delivered, and maintained has fundamentally changed. In the past, software was often installed and managed on-premises. Today, the majority runs in the cloud, frequently as a SaaS (Software-as-a-Service) solution, with continuous updates, vendor dependencies, and complex integrations.

This shift raises an increasingly urgent question for organizations: What happens if my software vendor shuts down, goes bankrupt, or ends the partnership?

Escrow: then and now

Traditional escrow was all about source code deposit. The idea was simple: if something goes wrong, you can always fall back on the code. In practice, however, that often proved insufficient. After all, source code without the accompanying documentation, development environment, or cloud infrastructure is nearly worthless.

Modern escrow arrangements are therefore much broader in scope: think of:

• SaaS escrow, where not only the code but also the data, infrastructure, and access to cloud platforms are secured.
• Continuity plans, ensuring automatic transfer or failover in crisis situations.
• Monitoring, providing assurance that the software is actively maintained, with the right versions and deployment procedures in place.

In today’s IT landscape, the question is no longer if you need escrow, but how. Modern escrow is not reactive but designed proactively—an integral part of software governance, risk management, and contracting.

For organizations that take continuity seriously—or for software vendors looking to emphasize their reliability—escrow is no longer a nice-to-have. It’s a must-have.