Software-as-a-Service (SaaS)
With the rapid growth of the SaaS delivery model many of the traditional software implementation requirements are gone. Capital expenses are vastly reduced and unfortunately, much of the due diligence and business continuance planning around the application have been removed from the procurement process.
While this delivery model may cost less initially, the End-Users’ reliance upon mission critical technology and access to their data should be protected.
When considering the need for SaaS escrow services, the traditional risk management still applies:
- Mission critical nature of the technology
- Vendor (stability, history of performance & financial viability)
- Rapid availability & implementation time of replacement technology
- Cost of down time and lost profits
- Cost of the technology
However, in the hosted model a few additional risk factors should be considered:
- Application availability – in the hosted model, vendor failure could result in immediate and permanent loss of the application and data. Historical client/ server installations often function for years after vendor failure. The immediacy of SaaS downtime should be carefully considered.
- Data availability – Many SaaS delivery vendors retain End-User data at their site thus leaving the End-User without their data in the event of vendor failure.
- Time Frames – End-User’s reliance upon constant access to SaaS applications contrasted with the immediate impact of vendor failure require accelerated time frames for the release of escrow deposit materials.
How EA Can Help
Escrow Associates has considered all critical risk factors related to SaaS in our SaaS escrow agreements. In addition, we provide you with the flexibility to modify our agreements to meet your specific needs.
Steps to implement SaaS escrow:
- Consult with EA to define risk factors
- Review/modify EA's most relevant template agreement
- Initiate escrow agreement/commence escrow deposits
- Implement technical verification testing to prove functionality of escrow deposit and data integrity
Want to know more about SaaS escrow agreements?
To reach one of our SaaS escrow specialists, please call us toll free 1-800-813-3523.