There is no short, simple answer to the question, ‘how much does software escrow cost?’ This is because not all software escrow providers offer the same services at the same price. Additionally, so much software nowadays is delivered via the Cloud which has seen the introduction of SaaS escrow, which comes with a slightly higher price point.
Having been around since the 1970s, there are quite a few software escrow solutions on the market today. They all provide slightly different services in their own slightly different ways. Each is priced individually and independently.
When looking for software escrow, it’s important to choose a provider that meets your needs and complexities at a price that suits you, while providing the level of security that you need.
Firstly, what is software escrow?
Software escrow is a service that helps protect all parties involved in a software license from a loss of service. These parties are usually a software vendor or developer and the software user. Standard software escrow involves a neutral third-party escrow agent, such as us here at LEA&S, having a contractual obligation to hold the source code and documentation for the software in question. We can also hold the data stored on the software but this is complex due to GDPR. We usually encourage end-users to take regular data back-ups and keep control of data themselves.
SaaS escrow works in a very similar way but is in use where there are three parties involved in the SaaS service; a software vendor, a software user and a third-party hosting provider. It protects all parties against the many issues that can arise with SaaS being off-premise.
With both standard software escrow and SaaS escrow, if something unexpected was to happen to the software vendor or the third-party hosting provider, the software user would still be able to access and maintain the software. These unexpected instances cover a number of eventualities, including if the software vendor or third-party hosting provider:
- Ceases to trade
- Becomes insolvent
- Enters into receivership or liquidation
- Fails to support the software as per their support and maintenance agreement
Ultimately, software escrow protects against a loss of service. In these cases, we as the escrow agent would release the source code for the software to the software user so that they may continue to use the software, keeping their business going with little to no disruption.
How much does an escrow agreement cost with LEA&S?
At LEA&S, we pride ourselves on offering affordable escrow services. We believe that protecting your business shouldn’t break the bank.
The pricing for our standard escrow agreement is as follows:
Set up fee
£750*
IP owner/licensor – 100%
Licensee – 0%
Annual fee
£560
IP owner/licensor – 0%
Licensee – 100%
Release fee
£100
IP owner/licensor – 0%
Licensee – 100%
*this may be reduced where there are 2 or more licenses
Our pricing for our SaaS Escrow Agreement with AccessAssure is as follows:
Set up fee
£1250
IP owner/licensor – 100%
Licensee – 0%
Annual fee (REU)
£950
IP owner/licensor – 0%
Licensee – 100%
Release fee
£250
IP owner/licensor – 0%
Licensee – 100%
Is software escrow worth it?
In today’s digital and technological world, having a backup plan in case something happens to your software provider is vital. Cybercrime is at an all-time high and the COVID-19 pandemic has left many businesses feeling unsafe and unprepared. Now is the time to think twice about protecting your business-critical data.
Software escrow agreements are a way for businesses to protect their software provision and are part of any good disaster recovery strategy. By investing in software escrow, you are not only protecting your business but also demonstrating your commitment and investment in the future of your business to investors.
Convinced? We hope so. If you have any more questions about software escrow and our pricing structure, simply get in touch. You can either fill out our online enquiry form or call us on 0800 456 1115.
