Software Escrow vs. SaaS Escrow: What’s the Difference?

Software Escrow and SaaS Escrow start from the same premise: protecting the continuity of your organization’s business-critical IT. Even so, they aren’t interchangeable. The biggest factor is how you use the software, because that determines what you need if a vendor fails. In this post, we explain how it works.

Software Escrow: it’s all about the source code

If you use software whose source code is managed by the vendor, Software Escrow is the answer. The source code and accompanying technical documentation are deposited with an independent escrow agent.

We store these materials securely and, under an active escrow agreement, make sure they’re updated at the agreed frequency and can be verified. If a situation occurs that the escrow agreement defines as a release condition, the materials can be released to you.

That gives you what you need to maintain, modify, or fix the software.

SaaS Escrow works differently

If you use software as a SaaS solution, the application runs on the SaaS vendor’s infrastructure or with a hosting or cloud provider. Your user data typically lives in that environment too. In that situation, a copy of the source code alone won’t get you very far.

Source code doesn’t give you a working IT environment. And it doesn’t automatically give you access to the data you need to use the application. That’s why SaaS Escrow takes a broader view of continuity.

The focus is on keeping the service available and securing access to the application and data if the vendor fails. That includes, for example, arrangements to continue hosting and cloud services.

Which one do you need, and why does it matter?

The key difference comes down to what it takes to keep going. With Software Escrow, it’s mainly about access to the source code and technical documentation. With SaaS Escrow, the live service itself also needs to stay available, and access to your data plays a major role.

That difference matters, because rebuilding a SaaS environment from source code alone can take considerable time. For an organization, or society at large, that relies on an application like this every day, that disruption can have serious consequences.

Not sure whether Software Escrow or SaaS Escrow is the right fit for your IT environment? Contact us. We’d be glad to work with you to find the solution that fits your situation.