Bug fixes, new releases, and development
All software has bugs. Specially written software tends to have many bugs. Software bugs are unpredictable and can affect a software application in many different ways; sometimes they can crash the software completely, rendering it useless. As a result, users need to buy maintenance and support service from the owner, so that when bugs arise they get fixed.
- To fix bugs, you need access to source code.
As part of most maintenance and support contracts, a user is also entitled to updates and new releases in respect of the software. These updates and new releases often contain standard "bug fixes" as well as improvements in functionality and performance.
- To create an update or a new release, you need access to the source code.
Sometimes a user not only takes a software licence and maintenance contract, but it also engages an owner to develop the software on an ongoing basis, constantly tailoring it to the user's requirements.
- To undertake software development, you need access to the source code.
Most software owners are unwilling to give source code to end users. The source code can often be trade secrets. They reveal the inner workings of the software. With the source code it is very easy to copy or adapt some or all of the software.
While all is well as between software owner and end user, the user does not need source code. If however the owner becomes incapable of doing its job, the user will be unable to get bugs fixed, new releases, and or new development. In these circumstances, the user must get its hands on the source code. Otherwise, its software may grind to a halt causing it substantial losses.
Software escrow can form a vital component of a business continuity and disaster recovery plan. In many ways a software escrow arrangement is an insurance policy against the owner's default of its obligations under the maintenance and support contract
Why use software escrow? 
