I’m A Developer- Do I Need Technology Escrow?

Nadine Dias

Although I would love to tell you that all of your technology should be placed in escrow, that just isn’t the case. It is not necessary for every piece of technology you develop to be put into an escrow account.

So how do you know what technology qualifies to be placed in escrow?

As much as I hate the term “mission-critical”, and think it is overused in the tech industry, it really comes down to whether your customers consider your application to be critical. If your technology is pertinent to the health and operations of your customer’s business, then it should be in escrow.

Okay, okay you want a more technical answer… The level of application risk you have is directly correlated to whether or not your technology should be in escrow.

Application Risk= Criticality + Cost + Time + Vendor Assessment

All of these factors play a role in determining the overall corporate risk your customers have using (and potentially losing) your technology. More specifically, the National Institute of Standards and Technology have developed a 5 point scale of determining how risky your application is. Take a look at the chart below and determine the level of risk associated with your technology. Simply go through the four squares and add up your answers to determine your risk.


How’d you do? The higher the risk, the more likely you should be to put your technology in escrow. Typically, applications with “low” risk do not need to be in escrow, while “medium” should be evaluated depending on the level of impact, and “high” should definitely be placed in escrow.

For more information on this, and a breakdown of the 6 steps to achieving best practice with Technology Escrow, download our full guide now:

Technology Developer's Guide to Escrow

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