What is Software Escrow?

From experience, make certain that all parties involved agree when a bug fix or very minor upgrade needs to go into escrow. For example, a minor bug fix, say a situation after actions 1,2,3 and 6 the F12 key no long functions as it is supposed to function. As fix like this can usually be documented by email and the fixed source code does not need to be reescrowed (with another possible charge). However, after many small fixes the code should be rolled up again and placed in escrow.

In the ever growing business world, there is a definite need for software escrow and source code escrow. And, there is even more of a need for the source code to be verified by a neutral third-party. NCC Group is the worldwide leader in providing independent Escrow Solutions - including Software Escrow, Source Code Escrow and Verification Testing to over 15,000 organizations worldwide across all industry sectors. For more information on how NCC Group can assist your organization, go to http://www.nccgroup.us for all of your needs both in North America, as well as in Europe.

Many of my business critical applications rely on software that has been developed and is maintained by a third party developer. For any bespoke software we commission it is now standard procedure that we enter into a Software Escrow agreement with the supplier.

I'm constantly amazed by how many SMEs are still unaware of the concept of Software Escrow - especially given the role IT plays in todays office.

When I was first introduced to the concept of Software Escrow and the role it could play in my business continuity there were two articles I found particularly helpful. Written in plain English and easy to understand!

The first http://www.totalescrowsolutions.com/how-software-escrow-works provides a great intro and follows with a typical scenario and solution. This helped place the concept of Software Escrow in context for me.

The second http://www.sitepoint.com/article/legalities-2-software-escrow/ provided a more detailed explanation and was extremely helpful.

I hope any readers new to the subject find these links useful too?

With the credit crunch hitting home I think it is essential to have the protection of having access to the source code. The credit crunch may result in a lot of web development agencies going out of business so make sure your protected. Bit of a no brainer. There is more specific information here - http://www.nccgroup.us/services/escrow-solutions/software-escrow-services.aspx.

Right now, during these extraordinary times, as we see the money supply dry up, we're going to more and more software supplies stop operating. A verified software escrow is the insurance that is needed. More detailed information located at http://www.innovasafe.com.

Because of the uncertainty in the economy and recent Wall Street meltdown, the stability of software companies is increasingly volatile. There is great concern about software companies being able to maintain important and Mission Critical software. For more Frequently Asked Questions about Software Escrows visit http://www.escrowtech.com/software_escrow_FAQ.php

i would recommend reading http://www.escrow101.net/source-code-escrow-are-you-just-following-the-herd.php to read about the bad sides of software escrow - it's not all white.

My background is 25 years in IT. I recently did a site http://www.SoftwareEscrowGuide.com/ that business users might find useful. Cheers. Frank Vipond [email address removed]
I'm neutral - not in the escrow business myself.

I think one of the most important things is to consider references and testimonials. Ask around business networks you will soon get an idea of who is good and who is poor within your local area.
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