What is cloud escrow? It’s simple! Today, on-premise software is increasingly being replaced with cloud-based and software-as-a-service (SaaS) solutions. Conventional software escrow agreements have also adapted to continue serving and protecting businesses and developers in an environment where neither the software nor the hosting platform is under their direct control. This newer type of escrow is vital for mitigating the operational risks of using cloud-based solutions. In short, it provides business enterprises with bespoke SaaS and cloud software escrow solutions to get mission-critical applications back up and running if a software vendor or hosting platform ceases to function. It also provides developers with access to a “trust account” for safekeeping their source code and ensuring their software users can rely on continuous access.
How does escrow for cloud-based software work? Well, in the past, business continuity for mission-critical applications was commonly ensured through a standard software escrow agreement. This conventional service empowers the escrow agent to hold and test the software source code and documentation in a secure trust account. When an activation event occurs, the software is released. This allows any on-premise software running in a live environment to be updated and maintained in the case that the vendor can no longer provide the service.
Today, cloud-based and SaaS solutions are increasingly popular. The major benefit of accessing business-critical applications through the cloud is that enterprises no longer need to maintain their own infrastructure. This not only saves on hardware cost and implementation time but also provides more flexibility for operations. Infrastructure capacity can be scaled up or down, even dynamically according to actual, real-time demand.
The increased flexibility of cloud and SaaS solutions does come with some challenges though. For example, it complicates business continuity planning. When there’s a supplier failure with on-premise software, the user still has access to their own infrastructure, where a live environment should still be running. Thus the impact of the failure is less immediate since the source code and documentation can be released from the escrow account and handed over to a new developer to ensure future support of the software. This all takes place without the business necessarily experiencing any downtime.
However, in the event of a SaaS or cloud host failure, the result can be an immediate loss of access to the service or the platform. Here the end user loses the functionality of their app and access to their vital business data, ultimately, threatening overall business continuity. To restore functionality seamlessly, both the software and data need to be retrieved and rebuilt on a new platform. In fact, with a thorough, well-structured cloud escrow agreement in place, businesses can rely on more than just securing access to the software. They can also have peace of mind that their valuable data will also be taken care of should a release or activation event be triggered.
The cloud escrow agreement process tends to begin with the contract in which the conditions of activation or release are specified. This would cover conditions in which either the software vendor is no longer able to support the software solution, or where the cloud host can no longer provide or maintain its infrastructure. It is important to keep in mind that moving applications to the cloud or migrating to a SaaS solution doesn’t absolve the business from contingency planning, in fact the risks associated with cloud based applications are greater than with on premise solutions. The onus for risk mitigation is still on the business. Escrow for cloud is a vital part of your risk management strategy because it not only ensures business continuity by protecting the software but also safeguards the vital business data that is created moment by moment in your business.
01 Enhance your digital security with escrow for cloud
As with any computing environment, the cloud comes with its own slew of security risks. Since it effectively lives on the internet, your data and applications are a much bigger target for hackers, malware, and phishing than with on-premise infrastructure. Needless to say, cloud security needs to be taken seriously by employing strategies such as multi-factor authentication and encryption. That will go a long way towards protecting sensitive data and intellectual property against theft. If a cloud-hosted system is breached and taken over by malicious entities, cloud escrow can help to rebuild the system to restore functionality and access.
02 Taking advantage of our secure active escrow
Escrow for cloud is an active escrow service. We test each deposit and also implement version control for updates and new releases. In that way, we ensure that the material deposited into the escrow account will be useful when it needs to be retrieved if a release condition arises. This is in contrast to passive escrow accounts, which function more like static vaults, in that the deposited material isn’t tested. If there should be something amiss with the deposited media, the mistake won’t be identified until the material is retrieved, which effectively nullifies the effectiveness of using a SaaS escrow solution for business continuity assurance.
03 Attract new clients with cloud escrow
As a SaaS vendor or developer, you don’t need to wait for negotiations with a potential client to commence before you start thinking about implementing a cloud escrow solution. It can be in your best interest to proactively include cloud escrow as part of the proposal you present to potential clients. You should know that large businesses need to adhere to strict good corporate governance codes, which include business continuity planning. Therefore, it stands to reason that you will be a cut above your competitors if you present your software pitch to new clients with a good cloud escrow solution already built-in.
04 Escrow for cloud protects businesses and developers
Moving business-critical software to the cloud has many benefits. It reduces infrastructure spending and provides more flexibility and scalability, resulting in increased revenue. But out of sight should not be out of mind. Although your cloud provider promises regular backups and low downtime, you should still plan for the worst. A well-structured cloud escrow agreement provides businesses with the peace of mind that they can restore the functionality of mission-critical software quickly if a cloud hosting provider suffers a catastrophic failure. It also assures the developers that their intellectual property will not be misused when the source code is released from the escrow account.