Data Escrow Definition
Data escrow is where one party to an agreement deposits information with an escrow agent, pending the performance of an obligation by the other party. If the obligation is not performed then the data will revert back to the party that deposited it with the escrow agent. This type of escrow has traditionally been used in relation to databases but has become prevalent in its own right recently with the emergence and widespread proliferation of Software as a Service ("SaaS"), also known as "cloud computing".
Software as a Service
SaaS is where the software used to create, access and store data is hosted on a central server by a service provider, together with the data itself, on behalf of several companies. This differs from the traditional model of hosting data on a hard drive in a computer situated on a company's premises. Data is often interacted with through a web browser when SaaS is deployed, removing the need for a business to invest heavily in the hosting and maintenance of its own data and instead delegating this to a third party provider in return for payment of a fee. This places an obligation on the provider, however, to ensure that a business is able to access its own data and that it is being held securely.
Advantages of Data Escrow
Data escrow acts to mitigate the risks associated with outsourcing critical data, particularly because the benefits received as costs savings can easily evaporate by the data being unlawfully accessed, corrupted or otherwise deleted. The escrow agreement will also provide for a quick remedy in the event of the hosting company becoming insolvent or for service outages or data losses that harm a business. In such an event, the clients will be entitled to recover their data and in some cases, may be entitled to the underlying data behind the SaaS framework. This will motivate the provider to proactively protect their network.
Lawdit's Data Escrow Services
Lawdit acts for clients around the world in relation to data escrow services and our team of escrow agents and solicitors are always on hand to assist and advise you. We offer a free call back service and are happy to discuss your particular needs, concerns and goals. Call or contact us today if you are looking to escrow data and we'll be pleased to talk you through your options.
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