Why Smart Software Vendors Offer Software Escrow

For software vendors, and especially start-ups, trying to land enterprise clients can be challenging. Trust in tech can be hard-won but easily lost, and large organisations don’t just want your product—they want to know you’ll still be around next year. Or next quarter. Or next week.

It can be galling to know you’ve put everything into building an amazing product, and growing your business, and feel that clients are focussed on risk, stalling your contract negotiations.

But this is where software escrow can strengthen your hand. Not as a dusty legal checkbox, but as a strategic commercial move that says: We understand your perspective. We’ve got your back, whatever happens.

Understanding why Enterprise buyers are risk-averse

Big companies don’t gamble on software. They’ve been burned before. Maybe a vendor folded. Maybe a vendor was acquired, and the product was shelved. Or an essential piece of software was hit by a critical failure that left them high and dry, with no easy recourse to recover – costing them a lot of time and money to resolve. That kind of thing that can put a business under. So, when they ask, “What happens if your company disappears?”—they’re not being dramatic. They’re being responsible.

And it’s not just about caution— in many sectors Enterprise organisations are under increasing pressure from regulators to manage third-party risk. Regulations like DORA, GDPR, SOX, and ISO 27001 require them to prove they’ve done due diligence on every vendor in their stack. That includes having a plan for what happens if a critical supplier fails. The consequences from regulators of non-compliance can include substantial financial penalties, sanctions and in some jurisdiction’s criminal liability.

Software escrow – safety net to commercial accelerator

Enterprise organisations choose software escrow because it helps answer the question of business continuity if something were to go seriously wrong, and gives legal, security, and procurement teams something concrete to point to when auditors come knocking.

By having software escrow and verification options available, you can clearly signal to clients that you understand their challenges and responsibilities, and it’s often a requirement if you want to work with larger organisations. Large businesses are always interested in innovative solution to give them a competitive advantage but if you’re a smaller, less well-known, or newer vendor you could appear more high-risk because of this. Offering software escrow gives your potential client reassurance - demonstrating your maturity, awareness and setting you apart in the market.

In addition, if you’re partnering with several organisations who require escrow and verification services then you may be able to offer Escode’s services out to your clients directly. This could help you consolidate the work you need to make to fulfil your contractual obligations and create an additional revenue stream.

Trust is the key

We’ve talked about how using software escrow can build trust, but putting your IP, the product you’ve worked so hard to bring to market, into someone else’s hands can feel risky. It’s a very common and understandable concern. But it’s important to know that your code is locked away with a trusted, neutral intermediary, and that it would only ever be released under the very specific circumstances that are your agreement.

Whether your it’s code for SaaS platforms, cloud infrastructure, APIs, data access protocols, or more traditional on-prem software, at Escode, our secure online portal with intelligent depositing features included automation to help make the process easy. Most importantly, it's all hosted in NCC Group’s secure infrastructure with 24/7 monitoring by our CREST-accredited SOC, encrypted deposits and source control connection and 2FA access. We also hold ISO 9001 and 27001 certifications. You're trusting us to hold your code securely, and we take that responsibility seriously.

If you’re aiming to win the trust of enterprise clients and unlock new opportunities, software escrow isn’t just a box to tick—it’s a signal. It shows you’re thinking beyond the next release, and that you’re ready to be the kind of partner they can count on when it matters most.

Find out more about how software escrow works by downloading our guide below.