Is software escrow necessary?
Software escrow is an additional expense for a company who is licensing software. How can you tell if you need a software escrow arrangement or not? Many people will tell you that it is always necessary, because you can't afford to be left holding the bag in the event of a bankruptcy or cancelled project on the part of the software company. However, depending on the size and scope of your company and the level of dependency on the software in question, you may not need to have a software escrow agreement, as you may just choose to risk it. In the case of a bankruptcy or cancelled project you could just switch to a different software company. If the software your company is using is a very intricate and custom designed software system which is used by every employee, then a software escrow agreement seems like a wise choice and a useful insurance policy.