Software Escrow contracts: the essentials you need to know

In today’s technology-first world, more companies are striving for a global presence but need to keep up with the everchanging demands of the digital world, whilst mitigating business risk. The growing reliance on software is evident, with organisations spending around $2,623 globally per employee per year on SaaS solutions alone. (1) However, this need for global business growth brings a level of risk, especially when a business or product is dependent on one or two software providers. The internet blackout from last year that caused some of the world’s biggest websites to go down for hours and had a huge impact on business revenues, was caused by a bug from one single software infrastructure provider. (2) With growing pressure to protect business continuity and avoid catastrophic tech failures that can impact an entire business, companies should consider software escrows as part of their overall risk management strategy.