Escrow is vital for banks choosing cloud computing, says provider

"The consequences of losing access to a business-critical application are magnified when the application and end user data are stored elsewhere, as with SaaS," he said. "An extended or permanent outage not only removes the user’s ability to support the application in the event of an error; it prevents them from accessing the application, its platform and their data altogether."

"The effects are immediate and can cause serious damage to an organisation. The SaaS model’s popularity amongst financial services companies is well founded, but they need to be protected," said Leigh.

When a company buys software or software services it is generally not given access to the source code. Without source code access it is impossible to change, update, modify or support a piece of software.

Escrow allows a customer access to the source code if any of the trigger events pre-agreed between customer and supplier come to pass.

Leigh said that customers should think twice about using software from a company which refuses to allow the use of escrow.

"It is essential in any business relationship, especially during a recession, for a provider to instil confidence in its customers, and SaaS providers are becoming aware of this," he said. "If they are unwilling to appease a company which is keen to secure access to a critical application should it become unavailable, it’s probably time for the business to look elsewhere."