What software end user’s need to know
What would be the impact to your business if a vendor of mission-critical software stopped supporting you?
Reduce the risk of using software
increase corporate compliance
achieve best procurement practice
As a software end-user, you rely on vendors to supply and maintain your software. This exposes your company to a new set of risks. In the event that your software vendor stops supporting you, an established escrow arrangement will protect your business by providing access to the source code and information that you would need to continue to operate.
Software escrow is an essential part of modern technology services contracts. It not only delivers compliance with best procurement practices and meets Sarbanes-Oxley corporate compliance regulations, but most importantly it also reduces the risk to your business.
The following are considerations when negotiating agreement with a key software vendor:
- Conduct a risk audit of your key vendors and applications to identify those most needing escrow deposits.
- Ensure that any escrow agreements you have in place contain clear release events.
- Ensure that any escrow arrangement specifies the source code and any additional material that is required to compile the source code
- Verify the initial escrow deposit and each update to ensure that it contains the source code and other material to enable working software to be compiled.
- Develop a process whereby you will be alerted if the escrow arrangement is not maintained.
- Assures your business continuity – protects you and your supplier relationship from market factors which are outside your control
- Protects you financially – avoids the cost of downtime or even having to start again. You have the time to replace the software with a new solution
- Reduces your risks – protecting the software with escrow means that if the developer cannot complete it, you can ensure that someone else can
- Improves service delivery – Your vendor has an added incentive to meet your service level requirements
- Your choice of either standard or tailored escrow agreements
- Fast service establishment – 24 hours for standard agreements
- A secure online escrow management system
- Compliance and lodgement activity monitoring
- Active Alerts that prompts you when an escrow lodgement is due
- Online and telephone support
- Software agreement, contract and procurement advice
- Software risk management consulting
- Software verification services
- Lodgement auditing services
To find out more or to talk to one of our escrow specialists, please contact us on +61 3 9618 2000