Source code escrow is a legal and operational arrangement in which a software vendor deposits the source code of a critical application, together with build instructions, configuration files, and dependencies, with an independent third party. The deposit is released to the beneficiary if predefined conditions such as insolvency, discontinued support, or product abandonment are met.
The purpose is continuity. If the vendor can no longer support the software, the beneficiary must be able to maintain, rebuild, and operate the system independently.
Traditional escrow rarely proves that outcome. A stored deposit may be incomplete, stale, or dependent on infrastructure the beneficiary cannot access. Until the software is independently rebuilt and run outside the vendor environment, the agreement is a legal instrument, not a recovery plan.