With a continuous stream of organisations steering their strategies towards a cloud-delivery model, the ask on software providers has significantly increased – not just in the sense of fulfillment but more recently for resilience and continuity assurance.
So, what is driving these questions of extra resilience?
There are three key risks that businesses are becoming more and more aware of that ISVs must proactively approach within their sales conversations, or risk losing out as a result.
Concentration risk describes the danger association with the probability of loss as a result of being dependent on a single vendor or supplier, so effectively putting all your eggs into one basket. Just one major operational incident from a leading SaaS application provider could potential cause untold and widespread disruption to businesses who do not have a business continuity plan in place.
Businesses operating in certain markets can now find themselves obligated to have a tested business continuity plan in place as standard in order to comply with their industry’s regulations, or risk being faced with quite sizable fines. Particularly industries like the finance and the public sector, which have always been quite heavily-regulated in the past, are now introducing further requirements in relation to operational resilience and third-party risk – for example PRA SS2/21 and the European DORA regulations.
Consumer risk is a knock-on effect of both regulation risk and concentration risk – if a business falls victim to either of these, it can have serious consequences for that company’s end users. If they are unable to access the services which they are reliant on, this can have an extremely negative impact on the business’ reputation, and subsequently lead to a loss of customers and loss of earnings. Customer loyalty can take years to build and seconds to destroy.
Put yourself ahead of the risk mitigation conversation by arming your solution with business continuity through software escrow services. By approaching the concerns around operational resilience with your customers head on, you can give your business a competitive edge and reap the benefits.
You can find out more about embedding software escrow into your service offering through the NCC Group Partner Network.
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