What’s the Purpose of Software Escrow?
Published on 15/12/2025
For many, delving into online content around the topic of Software Escrow can be an overwhelming experience, one that involves technical wording and complex descriptions. However, at its core, the concept of Software Escrow is actually very simple. This blog will simplify the main purposes that are driving the growing use and implementation of Software Escrow (also known as Source Code Escrow) around the globe.
Essentially, a Software Escrow Solution safeguards critical software applications. A critical application is a piece of software that a person or company relies on heavily. Examples include financial transaction systems, HR management platforms, and client management software.
Software Escrow is a legal tri-party arrangement designed to protect both software vendors and their clients. It involves a neutral third-party Escrow agent (such as SES Secure) holding critical software assets such as source code, documentation, or data on behalf of the vendor. These assets are released to the client only under specific, pre-agreed conditions, such as the vendor going out of business or failing to meet contractual obligations. In the event of an unforeseen disruption, a Software Escrow Solution ensures that an end-user can maintain operational access to the critical application held in Escrow.
At SES Secure, we accept unlimited source code deposits. This ensures that if an Escrow release event takes place, the end-user has access to the most up to date version of a critical application.
For more information on the fundamentals of Software Escrow, check out the following resources:
What is Software Escrow? – A Simple Guide
Understanding the Fundamentals of Software Escrow
Without a Software Escrow Solution in place, businesses risk losing access to mission-critical software if the vendor fails. This could mean downtime, financial loss, reputational damage, and costly emergency fixes. Software Escrow acts as a safety net, ensuring that organisations can continue using and maintaining their software, even in worst-case scenarios.
There isn’t one primary purpose behind the utilisation of Software Escrow, there are multiple. These include:
If a vendor goes bankrupt, stops supporting the product, or breaches the contract, a Software Escrow Solutions allows the licensee to access the source code to keep operations running.
Source Code Escrow reduces dependency on a single supplier and safeguards against unforeseen disruptions.
Vendors show commitment to clients by agreeing to a Software Escrow arrangement, reassuring them that their investment is protected.
Source Code Escrow agreements clearly define release conditions, ensuring fairness and compliance for both parties.
Some Software Escrow services include verification, ensuring that deposited code is complete, functional, and usable if released. At SES Secure, verification exercises are conducted by our in-house team of technological experts.
In today’s digital-first world, businesses rely on third-party software more than ever. That dependency creates risk. The importance of Software Escrow’s purpose has never been so crucial.
SES Secure have been an established provider of Software Escrow and SaaS Escrow Solutions for over two decades. Something that sets us apart is the outstanding level of experience, understanding, and insight that our team of experts has. Additionally, we understand that every client solution is different and completely catered to a unique set of needs, specifications, and preferences.
Throughout the entire Software Escrow process, our team are at hand to guide clients in understanding the ins and outs of their bespoke solution and answer any questions that may arise.
See what our clients have said about their experiences with us.
To arrange a call with a member of our team, please get in touch.