Organizations often focus on software functionality, pricing, security, and implementation when negotiating a software or SaaS agreement. However, an equally important consideration is what happens if the organization eventually needs to leave the vendor.
A recent TechTarget article, “Software contracts can lock CIOs in long before they need to leave,” by technology journalist Pam Baker, examines how software contract terms established at the beginning of a vendor relationship can significantly affect an organization’s ability to transition away from that vendor later.
The article discusses several important considerations, including data ownership and portability, migration assistance, renewal and termination provisions, vendor changes, business continuity, and exit planning.
Of particular interest to InnovaSafe and our clients, the article also discusses source code escrow as a potential protection for mission-critical software and the role escrow arrangements can play when a software provider discontinues a product, becomes financially unstable, or can no longer provide the required service.
These considerations become even more important with SaaS and cloud-based applications. Business continuity may depend on more than access to source code. Databases, configuration information, documentation, cloud infrastructure, deployment processes, credentials, third-party dependencies, and other materials may also be necessary to maintain or recover a critical application.
Read the full TechTarget article:
Software contracts can lock CIOs in long before they need to leave
About the Author: Pam Baker is a technology journalist and author who writes about artificial intelligence, technology, and enterprise IT.
InnovaSafe provides this link as an educational resource for organizations evaluating software escrow, SaaS escrow, vendor continuity, and technology risk. The linked article is authored by Pam Baker and published by TechTarget/Informa TechTarget. InnovaSafe is not affiliated with TechTarget, and inclusion of this article does not constitute an endorsement of InnovaSafe or its services.