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Could a cyber attack put you out of business?

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With news of cyber attacks hitting the headlines across the world on a regular basis, it’s more important than ever to consider what would happen if you were subject to such an attack. And it’s not just your security you’ve got to consider.

Software as a Service (SaaS) is an increasingly popular way to equip businesses with software through a cloud-based system. With no need to purchase servers, application software or support staff this has become the go-to option for many companies.

Are You Prepared?

With the ever-present threat of cyber attacks, it is important to ask what would happen if the software or hosting company providing your SaaS was subject to an attack. Yes, they should have a disaster recovery plan for all your software and data if this did occur. But what if it caused them to go out of business?

According to Government data, the cost of a cyber attack could cost a small business £300,000. And for large companies this figure can be considerably higher. If the company you were contracting your SaaS from was subjected to this cost then they could conceivably go out of business. And that means both your software and data could be at risk.

Software escrow agreements can help you mitigate risk

A SaaS Escrow agreement can help to mitigate this risk and give you peace of mind should your software or hosting provider go out of business for any reason, including cyber attacks. It will ensure that you have access to your critical software and data. And with 72% of companies that have a major data loss going out of business within 24 months, you can see how important it is to plan for the worst.

And it’s not just SaaS that’s a cause for concern. If you purchase your software in the traditional manner through a software provider and your software provider is subject to a cyber attack and subsequently goes out of business, then you could lose your critical software and data.

A software Escrow agreement is a legal agreement that can protect you against this in a similar way, by ensuring you can use, access, support and update your software, even after your provider has gone out of business – therefore enabling you to continue your business.

Protecting yourself

Planning for what would happen in the event of a cyber attack and putting measures in place to try and stop this from happening should be a major part of any business. Software and data are two extremely valuable parts of a business. Indeed, many businesses couldn’t run without them.

Extending your thinking to what would happen in the case of a cyber attack on your software provider and taking out a suitable Escrow agreement to mitigate the effects this would have on your livelihood is an essential part of running a successful business today.

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