Software escrow is a continuity arrangement intended to give a customer access to agreed source code, documentation or other materials if a defined supplier failure event occurs. It can be relevant when a critical business application is difficult to replace quickly and the supplier relationship is central to continued operation.
For a UK SME, the first step is to identify which applications are genuinely critical, what business processes depend on them and what recovery information would be needed. Consider the deposit contents, update frequency, verification process, release conditions, access rights and responsibilities after a release. A contract label alone does not answer those operational questions.
The £20k safety-net framing is a way to test whether the cost and effort of continuity planning is proportionate to the business exposure. It is not a promised loss avoidance figure. The right decision depends on the application, supplier position, data and documentation available, replacement options, recovery time and the organisation’s risk appetite.
A sensible checklist covers the agreement, deposit scope, verification evidence, release triggers, confidentiality, dependencies, version control and who will maintain the plan. Procurement, technology, legal and business owners should understand the arrangement before relying on it. General information is not a substitute for advice on a customer’s specific contract, resilience or procurement context.