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Source Code Escrow - the secret killer of your budget
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I don’t see the point of Escrow agreements.
There…I said it.
Before you come flinging something back like
“would you be happy if your house wasn’t insured” let me clarify.
I don’t see the point of most Escrow agreements I see in most businesses when it comes to source code protection for Software as a Service agreements.
I do get the purpose:
Business Continuity Satisfaction - you know you are protected if the worst happens and your provider becomes insolvent
High level of infosec & data protection
Provides accurate and up-to-date source code
But here’s where I see it as a big waste of money in most organisations.
Nobody actually exercises the Escrow rights or provisions. There’s always a cheaper, easier way out.
A lot of the time it can be unnecessary too. It reminds me of the miss selling scandals of the early noughties where banks tried to sell you PIP (Personal Insurance Protection)
Most escrowed source code is incomplete or out of date.
Hardly anyone pays the extra for escrow verification services that ensures in the event of an escrow release, everything is complete and up to date.
Does anyone within the business actually have the expertise to use the source code out of escrow?
This is a big reason the answer to my point number 1 is what it is.
ICYMI
My best Linkedin post of the week:
I know this Wednesday Rant will receive a lot of pushback from technology Procurement managers.
I’m not saying Escrow isn’t a relatively inexpensive and important piece of insurance.
I just think it’s something many Procurement pros sleepwalk into without considering…
Do we need it?
Does it actually deliver?
Do we have the expertise to handle it if we have to use it?
You know…
those standard 101 Procurement questions we should be asking at the start of every engagement we get involved in.
Thoughts?
Tom
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