The Softletter SaaS Escrow Report

SUMMARY

The Softletter SaaS Escrow Report provides software companies and companies using SaaS applications with up-to-date benchmarks, metrics, and usage information on SaaS Escrow and fallover/failover services. The report covers everything from SaaS application usage, value and risk perceptions associated with SaaS application adoption and forecasted use of SaaS applications and the need for SaaS escrow services.

Softletter believes that both SaaS application providers and subscribers need to take a closer look at their strategies in regards to software escrow as the adoption of SaaS applications continues to grow. Companies are rapidly moving to SaaS for their mission critical applications and need to plan and prepare for and be ready to manage risk. This report will help raise your awareness of the availability, purpose, and value of SaaS escrow services, which will enable your firm to create contingency plans to both protect your data and quickly maintain application uptime if your services provider fails temporarily or permanently.

The report breaks out responses by company revenue size and years selling, or using, SaaS applications. This enables you to compare your company’s performance and goals against similarly sized types and category peers. We are confident that this report will be an invaluable source of information to guide the adoption and/or implementation of a SaaS Escrow strategy.

SCOPE

• Comprehensive review of all issues, concerns and expectations for SaaS Escrow and failover/fallover services from both subscriber and provider views.
• Up-to-date benchmarks, metrics and best practices information on SaaS Escrow and Services.
• Information cross referenced by company revenue size and years selling or using SaaS applications.

REASONS TO BUY

• Any SaaS application subscriber or provider needs this report to understand the issues, perceptions, usage and requirements for SaaS Escrow and failover/fallover services.

CONTENTS

Introduction and Methodologies

Company Profiles and Demographics: Providers
Provider: What is the development stage of your company?
Provider: Current Gross Revenue
Provider: For how many years has your company been selling SaaS systems?
Provider: What is your primary market for your SaaS product?
Provider: How are your SaaS applications hosted?

Company Profiles and Demographics: Subscribers
Subscriber: Current Gross Revenue
Subscriber: For how many years has your company been using SaaS (Software as a Service) based applications?
Subscriber: Approximately how many users do you have of SaaS Applications in your company?

SaaS Application Usage: Provider
Provider: How many SaaS applications does your company use today?
Provider: What types of SaaS applications does your company use today?
Provider: How many additional SaaS applications does your company anticipate adding in the next 12 to 18 months?
Provider: What types of SaaS applications does your company anticipate adding in the next 12-18 months?
Provider: Does your company use SaaS for any mission-critical applications?
Provider: Does your company currently make use of SaaS-related escrow services as a Subscriber?

SaaS Application Usage: Subscriber
Subscriber: How many SaaS applications does your company use today?
Subscriber: What types of SaaS applications does your company use today?
Subscriber: How many SaaS applications does your company anticipate adding in the next 12 to 18 months?
Subscriber: What types of SaaS applications does your company anticipate adding in the next 12 to 18 months?
Subscriber: Does your company use SaaS for any mission-critical applications?

SaaS Escrow Customer Risk Perception
Risk Perception Section Introduction
Provider: How concerned are your customers with you (the SaaS Provider) going out of business?
Subscriber: How concerned are you with your SaaS Provider(s) going out of business?
Provider: How concerned are your customers about short-term outages?
Subscriber: How concerned are you with short-term outages?
Provider: How concerned are your customers about extended outages?
Subscriber: How concerned are you with extended outages?
Provider: How concerned are your customers about lack of support or deteriorating service levels? 85
Subscriber: How concerned are you with lack of support or deteriorating service levels from your SaaS Provider?
Provider: How concerned are your customers about security or protection of their data from misuse or unauthorized access?
Subscriber: How concerned are you about security or protection of your company's data from misuse or unauthorized access?
Provider: How concerned are your customers about the availability of a back-up hosting center for disaster recovery?
Subscriber: How concerned are you with your Provider making available a back-up hosting center for disaster recovery?

Effectiveness of SaaS Escrow Programs for Providers
How effective is using substantiated documentation (SAS70, SysTrust certification, DR/BC plans, etc) to counter customer concerns?
How effective is using Service Level Agreements (SLAs) to counter customer objections?
How effective is using Escrow Agreements to counter customer objections?
How effective is using Novation Arrangements to counter customer objections?

SaaS Escrow Usage: Provider
Does your company provide an escrow option (agreement) for your customers in the event of a major service interruption or your company going out of business?
Does your company provide a complete fallover ("failover")* guarantee in the event your company goes out of business?
Does your company offer unencumbered access to the client's data archive or back-up?
Does your company provide Novation Arrangements for your customers in the event of your company going out of business?
Does your company provide Performance Bonds to your customers?
How is your Escrow option/agreement prepared?
What percentage of your customers, or potential customers, require you to provide an escrow or failover service as a condition of conducting business?
Provider: Is your company also a Subscriber (user) of SaaS Applications?

SaaS Escrow Usage & Value Perceptions: Subscriber
Does your company currently make use of SaaS-related escrow services?
Does your company's SaaS provider have a backup data center available for disaster recovery purposes?
How important is protecting your company's SaaS applications and related data with a SaaS escrow agreement?
Are the added costs and legal complexities associated with SaaS-related escrow services a deterrent against implementing these services for your organization?
Would your organization be willing to pay more for a SaaS Application that offered as an option an appropriate Escrow Agreement?
Please indicate how much more you would anticipate paying, on a one-time basis, for a SaaS application that offers an appropriate escrow agreement
If escrow services were provided as a premium on the cost per user/per month what would you be willing to pay incrementally for these services?

SaaS Escrow Services Recognition
Provider: Please tell us which of the following companies you recognize as providing third-party SaaS Escrow and Failover services
Provider: Please tell us which of the following companies you have evaluated for third-party SaaS Escrow and Failover services
Subscriber: Please tell us which of the following companies you have evaluated for third-party SaaS Escrow services