Software escrow and SaaS escrow solve the same fundamental problem, the continuity of business-critical software when a vendor fails, but they do so in fundamentally different ways. The choice between the two depends on how the software is delivered: on-premise or as a cloud service.
Traditional software escrow
With classic source code escrow, the vendor deposits the source code, build scripts, and documentation with an independent escrow agent. Upon a pre-agreed trigger, such as bankruptcy, cessation of maintenance, or breach of contract, the customer gains access to the material to continue the software independently.
This model is well-suited for software that the customer installs and runs themselves. After all, the customer already manages the infrastructure; only the source code is missing to take over maintenance.
SaaS escrow
With SaaS, the software does not run at the customer's site but in the vendor's cloud environment. Source code alone is then insufficient: without the running infrastructure, configuration, data, and deployment pipeline, the customer cannot restore the service.
SaaS escrow (also known as cloud or continuity escrow) therefore secures a broader package:
- Source code and build instructions as with classic escrow
- Infrastructure-as-code and environment configuration
- Periodic data copies from the customer
- Deployment and runbook documentation to redeploy the service
Technical and operational differences
| Aspect | Software escrow | SaaS escrow |
|---|
| Delivery model | On-premise | Cloud / SaaS |
| Deposited material | Source code + docs | Source code + infra + data + runbooks |
| Recovery goal | Take over maintenance | Redeploy service |
| Data continuity | Present at customer | Must be secured separately |
| Verification need | Build-test | Build- and deploy-test |
Which model suits you?
Choose software escrow if you host the application yourself and only lack the source code to take over maintenance. Choose SaaS escrow if the service runs in the vendor's cloud and you need infrastructure, configuration, and data in addition to code to ensure continuity.
In practice, the market is shifting towards hybrid and SaaS models, as more and more software is delivered as a cloud service. A verification process, where the escrow agent tests whether the deposited material can actually be built and deployed, is extra important for SaaS escrow.
