What is SaaS Escrow?
SaaS escrow is like a safety net for your business.
When a company uses software that lives in the cloud (called SaaS, or Software as a Service), they depend on the software company to keep everything running. But what happens if that company goes out of business, gets bought, or just stops helping you?
That’s where SaaS escrow comes in. It makes sure that important software keeps working even if something bad happens to the company that built it.
SaaS escrow protects businesses by making a copy of the software, the code, and the instructions on how to run it. That way, if there’s a problem, the business can still get to the software and keep going.
The 3 Fundamentals of a SaaS Escrow Solution
1. The Escrow Agreement
The escrow agreement is a legal promise. It’s a contract between three people:
- The software creator (called the depositor)
- The business using the software (called the beneficiary)
- The escrow company (like PRAXIS)
This agreement explains who gets the software and when. It also says what must happen for the escrow company to “release” the software.
In simple words: The escrow agreement is the “rules of the game” everyone agrees to before anything happens.
2. Technical Verification
Technical verification is a way to check that the escrow deposit (the stuff we’re protecting) is good enough to use if needed.
At PRAXIS, we:
- Make sure all the files and code are there
- Check that the documents tell how to put the software together
- Confirm that a “reasonably skilled” software engineer could recreate the app from the deposit
This is really important! You don’t want to get an incomplete deposit when you really need it.
In simple words: We double-check that you actually have everything you need to rebuild the software.
3. Recovery Environment
The Recovery Environment is a special backup plan. PRAXIS sets up a cloud space (like AWS or Azure) where a copy of the SaaS application can run.
If the original software company fails, the business can quickly switch to the Recovery Environment. This gives them time to find a new solution without losing service.
Important: PRAXIS owns and maintains the hosting space, but we do not support or update the software inside it.
In simple words: It’s like having a backup house ready to move into if your real house burns down.
PRAXIS SaaS Escrow Solutions
PRAXIS offers three ways to protect SaaS applications:
1. Recreate
Recreate means rebuilding the software from scratch using the escrow deposit.
- Good for complicated SaaS apps
- Helps when you need long-term protection
In simple words: It’s like using a recipe to bake a cake all over again.
2. Access (Takeover)
Access (also called Takeover) means PRAXIS safely holds the username, password, and instructions for your private cloud environment.
- Best for single-tenant or private cloud SaaS
- Fast and easy access if something goes wrong
In simple words: We hold the keys to your car in case you need to drive it yourself.
3. Recovery Environment
Recovery Environment means PRAXIS creates a new hosting space (AWS, Azure, etc.) where a second copy of the SaaS app can live.
- Best for short-term emergencies
- Lets you keep working while you plan next steps
In simple words: It’s like having a spare car ready to go if your main one breaks down.
Why SaaS Escrow Matters
SaaS escrow is smart business. It protects you from risks you can’t control:
- SaaS Continuity: Keep your business running no matter what.
- SaaS Risk Mitigation: Avoid being stuck if your software provider fails.
- Software Escrow and Code Escrow: Make sure you have the “recipe” and “ingredients” to rebuild if needed.
- Business Continuity: Save time, money, and stress.
- Technology Escrow: Future-proof your technology investment.
About PRAXIS Technology Escrow
PRAXIS Technology Escrow is a trusted partner for businesses that depend on SaaS applications. We offer flexible, secure, and smart escrow services that protect you today and prepare you for tomorrow.
Our SOC2-compliant services, automated depositing, and dedicated experts make it easy for you to set up SaaS escrow without the stress.
Ready to learn more?