By: John J. Stulman, JD CEO and Founder, InnovaSafe, Inc.
Cloud Computing NeedsTechnology Escrow
Organizations increasingly rely on cloud computing and Software-as-a-Service (SaaS) applications to support mission-critical business operations. These services can provide flexibility, scalability, and reduced infrastructure requirements, but they also create a significant dependency on third-party technology providers.
When a critical application operates in a provider-controlled environment, traditional source code escrow may not provide everything an organization needs for business continuity.
That is where technology escrow can provide additional protection.
The Business Continuity Risk of Cloud Applications
With traditional licensed software, a customer may operate the application within its own infrastructure and retain control over its systems and data.
Cloud and SaaS applications are different.
The provider may control not only the source code but also the infrastructure, databases, configuration, deployment processes, dependencies, and other components required to operate the application.
If the provider can no longer deliver the service, customers may face several risks, including:
- Loss of access to a mission-critical application
- Loss of access to business data
- Provider insolvency or discontinued operations
- Acquisition or discontinuation of a product
- Failure to provide required support or maintenance
- Contractual disputes
- Extended service interruptions
- Difficulty transitioning to another provider
For organizations that depend heavily on a SaaS application, these risks should form part of vendor risk management and business continuity planning.
Why Source Code Alone May Not Be Enough
Traditional source code escrow focuses primarily on protecting the source code and supporting materials for licensed software.
A modern cloud or SaaS application may require considerably more.
Depending on the application, recovery materials could include source code, databases, configuration files, build instructions, Infrastructure-as-Code, deployment scripts, CI/CD configurations, cloud architecture documentation, dependencies, backup information, and other technical materials.
The important question is not simply:
“Do we have the source code?”
It is:
“Do we have the materials necessary to recover, recreate, maintain, or transition this application if the provider can no longer support us?”
How Technology Escrow Helps
Technology escrow provides an independent mechanism for protecting agreed-upon technology and information needed to address continuity risk.
The software or SaaS provider deposits specified materials with an independent escrow agent such as InnovaSafe. The escrow agreement defines what must be deposited, how the materials are maintained, and the conditions under which they may be released to an authorized beneficiary.
The deposit can be updated as the application changes so that the protected materials remain current.
For modern development environments, InnovaSafe can also support secure electronic deposits, repository integrations, and automated deposit processes.
Verification Adds Another Layer of Protection
Depositing materials is only part of an effective escrow strategy.
Organizations should also consider whether the deposited materials are complete and usable.
InnovaSafe provides multiple levels of technical verification. Depending on the level selected, verification can include reviewing the contents of a deposit, recreating a development environment, compiling source code, comparing executable files, or performing more comprehensive usability testing.
Verification can identify potential problems while the software provider and its technical personnel are still available to correct them.
Technology Escrow Should Match the Application
There is no single escrow configuration appropriate for every cloud application.
A relatively simple SaaS application may require source code, documentation, and database materials. A complex cloud-native application may depend on numerous services, infrastructure configurations, deployment processes, and third-party components.
The appropriate escrow arrangement should reflect the application’s architecture, the organization’s dependence on the service, and its business continuity objectives.
Protecting Critical Cloud and SaaS Applications
Cloud computing has changed how organizations acquire and use business-critical software. It has also changed the risks that technology escrow must address.
A well-designed technology escrow arrangement can help organizations reduce their dependency on a single technology provider by protecting the software, information, and technical materials needed for continuity.
Since 2001, InnovaSafe has provided independent technology escrow services for organizations that depend on mission-critical software and technology.
Contact InnovaSafe to discuss your cloud or SaaS application and determine an appropriate escrow and verification solution.
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