Global learning company, eXact learning solutions, has signed an escrow agreement with NCC Group, a FTSE 250 listed global expert in cyber security and risk mitigation.
Valerio Torda, eXact learning solutions’ Managing Director, explained, “We value our customers and work hard to deliver software solutions which meet their key business requirements – as well as build strong relationships based on trust.
“We recognize our responsibility to help these customers ensure their business continuity through the long term performance and availability of our software,” he added. “That’s why we’re taking the groundbreaking step of working in partnership with the global information assurance provider, NCC Group, to offer our customers business continuity protection through this escrow agreement.
“Under the terms of the agreement, we’ve deposited the eXact learning Suite source code – including that for our flagship product the eXact learning content management system (LCMS) – within NCC Group’s secure facilities. This means that, from now on, we can offer this extra level of security to our customers – so that, in the extremely unlikely case of something happening to our software or company, our customers will always be able to utilize our software.”
Currently protecting over 9,000 business critical software applications under comprehensive escrow agreements, on the behalf of licensees worldwide, NCC Group is a FTSE 250 listed global expert in cyber security and risk mitigation, working with businesses to protect their brand, value and reputation against the ever-evolving threat landscape. Headquartered in Manchester, UK, with more than 30 offices across the world, NCC Group employs more than 1,800 people and is a trusted advisor to 15,000 clients worldwide. Among other things, it offers a range of different escrow agreements.
Under the terms of eXact learning solutions’ escrow agreement, the company supplies NCC Group with a copy of the source code for their customers’ applications. NCC Group holds this, securely, on the customer’s behalf. This source code is regularly updated to ensure that the source code held by NCC Group is always up-to-date and reflects the current version of the customer’s application.
“In the extremely unlikely event that eXact learning solutions becomes unable to meet its contractual obligations, NCC Group will release the source code to the customer, allowing that customer to maintain and correct its software without disruption to its operations,” Mr Torda stated.
The word ‘escrow’ derives from the Old French word ‘escroue’, meaning a scrap of paper or a scroll of parchment. This indicated the deed that a third party held until a transaction was completed. An escrow is:
- A contractual arrangement in which a third party receives and disburses money, documents or software for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties, or
- An account established by a broker for holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction, or
- A trust account held in the borrower’s name to pay obligations such as property taxes and insurance premiums.
Source code escrow is the deposit of the source code of software with a third party escrow agent. Escrow is typically requested by a party licensing software (the licensee), to ensure maintenance of the software.