Include a source code scan to your escrow for more Security

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With a staggering prediction that 99% of companies will be using one or more Software as a Service (SaaS) solutions by the end of 2023, the importance of safeguarding these digital assets is more crucial than ever.¹  Organizations rely heavily on various software solutions for daily operations, meaning the underlying source code is an invaluable asset. As a protective measure, many businesses opt for a software escrow - a third-party agreement designed to hold and release software source code under predetermined conditions. Yet, in an era where cyber threats are ever-evolving, it has become increasingly clear that traditional software escrow arrangements might not be enough. Incorporating a source code scan into your escrow agreement can enhance security and offer an additional layer of protection, making your escrow agreement more robust and resilient.

Include a source code scan to your escrow for more Security
Include a source code scan to your escrow for security
Table of contents

The Intersection of Security, Code Scan and Escrow

In essence, the software escrow agreement is designed to mitigate risk. Should the software vendor fail to provide necessary updates, maintenance, or go out of business, the escrow releases the source code to the licensee, ensuring business continuity. However, the question remains - how secure is this source code? What if it contains vulnerabilities that could compromise your entire operation? This is where the need for a source code scan becomes apparent.

A source code scan in your software escrow agreement can help detect hidden issues, from bugs to security vulnerabilities. It's not just about having the source code at your disposal when needed, it's also about ensuring that the code is secure and free from threats that could potentially impact your business operations or compromise sensitive data.

The Role of Source Code Scans in Escrow Security

A source code scan uses advanced technologies to analyze the code for any security vulnerabilities or flaws that could be exploited by malicious actors. This security measure is crucial in maintaining software integrity and protecting your business from potential cyber threats. Source code scans within an escrow agreement serve a dual purpose – firstly, they provide an assurance that the code held in escrow is of high quality, and secondly, they protect your business from potential vulnerabilities that might lie hidden within the source code.

While some might see this as an unnecessary step in the escrow process, considering the increasing prevalence of cyber threats, it is a logical and necessary advancement in escrow agreements. This proactive approach can save your business from unexpected security breaches and cyber threats, making your software escrow more resilient.

As businesses increasingly rely on software for their operations, securing the source code against potential vulnerabilities becomes a priority. Including a source code scan in your software escrow can provide that additional layer of security, giving you peace of mind that your software assets are secure, even in unforeseen circumstances.

Leveraging Source Code Scans for Enhanced Escrow Security

As software becomes more complex, the possibility of vulnerabilities hidden within the source code increases. Including a source code scan in your software escrow agreement is a proactive step towards ensuring the security of your business operations. By employing this measure, you not only protect your business from potential risks but also ensure that your software continues to deliver the expected value.

The Added Value and Timing of Source Code Scans in Software Escrow

In addition to the core benefits of risk mitigation and enhanced security, conducting a source code scan as part of your software escrow agreement provides several other advantages. For one, it aids in maintaining the overall quality of the code. By identifying bugs, redundancies, and potential enhancements, you can increase the efficiency of your software, making it more reliable and user-friendly.

Another noteworthy benefit is the peace of mind it brings to the licensee. A source code scan provides transparency about what exactly is held in escrow. This transparency can significantly enhance trust between all parties involved in the agreement.

The question of frequency is one of risk management. The more frequently you update the source code, the more often it should be scanned. If you’re on a rapid release cycle, such as weekly or bi-weekly updates, then it might be worth conducting a source code scan for each update before placing it in escrow. This way, you ensure each version of the code held in escrow is as secure and reliable as possible.

However, if the software's development cycle is slower, then conducting a scan once a year or even every six months could suffice. It's important to align the scan frequency with the rhythm of the development cycle and the criticality of the software to your operations. Remember, the goal is to balance risk mitigation with practicality to ensure optimal software security and functionality.

Final Thoughts

In conclusion, a software escrow agreement is more than a simple risk mitigation strategy. It is a means of ensuring business continuity in the face of potential software vendor failures. Adding a source code scan to your escrow agreement not only secures the quality of the source code but also acts as a critical protective measure against hidden vulnerabilities. As the digital landscape continues to evolve, a secure software escrow incorporating source code scans will become an integral part of a robust business strategy, safeguarding your digital assets, and ensuring operational resilience in the face of uncertainty.

 ¹ Zippia, “30 SAAS Industry Statistics [2023]: Trends + Analysis”. 13 Mar 2023,

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Philippe Thomas, CEO Vaultinum
Philippe ThomasPhilippe is the CEO of Vaultinum. He's an expert in new technologies and high finance, and has an experience of 20 years in the international fintech industry.

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