Software Escrow

Software is made up of code. Programmers write code in object format which then gets compiled by the computer into source format. Ultimately this code is then translated to machine format which can be read by the computer s hardware, basically ones and zeros. Included with the software code, documentation is also normally present as part of the whole package.

The source code is the origin of the ultimate software application and has a substantial value in the sense that without it the application cannot be generated and therefore executed. This code is not normally delivered to the end-user (or client), but the part delivered would normally consist of the executable part only.

To many programmers and developers, supplying the source code is normally not a very desired option. By doing so, they are exposing their hard work to anyone in the field that can read the code. The client can easily supply the code to a third party which can then change the code or use it to develop something even more elaborate which will then compete, or worse, make obsolete the origin piece of work.

This is where escrow software agents come into play. These agents are responsible for handling and storing the source code. Their role is to protect both the rights of the end-users as well as the proprietary technology present in the programmer s code.

In cases where software is very costly or is business-critical to the organization involved, software is placed into escrow. But what advantages do parties take from escrow software.

End-User

Having an escrow software service, the user is guaranteed that the source code used for his business application can be available if anything had to happen to the programming organization or software developers. Anything can happen, from company insolvency to bankruptcy, or closure of business. Escrow software saves the day.