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Software as a service data escrow is the process of keeping a copy of critical software-as-a-service application data with an independent third party. Similar to source code escrow, where critical software source code is stored with an independent third party, SaaS data escrow is the same logic applied to the data within a SaaS application. It allows companies to protect and insure all the data that resides within SaaS applications, protecting against data loss.
There are many and varied reasons for considering SaaS data escrow including concerns about vendor bankruptcy unplanned service outages and potential data loss or corruption. Many businesses are also keen to ensure that they are complying with their own data governance standards or want improved reporting and business analytics against their SaaS data. A research conducted by Clearpace Software Ltd. into the growth of SaaS showed that  percent of the participants wanted to take a copy of their SaaS data. A third of these participants wanted a copy on a daily basis.
Engineering simulation software, traditionally delivered as an on-premises solution through the user's desktop, is an ideal candidate for SaaS delivery. The market for  simulation software is in its infancy, but interest in the concept is growing for similar reasons as interest in SaaS is growing in other industries. The main driver is that traditional engineering simulation software required a large up-front investment in order to access the simulation software. The large investment kept engineering simulation inaccessible for many startups and middle market companies who were reluctant or unable to risk a large software expenditure on unproven projects.
Unlike traditional software, which is conventionally sold as a perpetual license with an up-front cost  providers generally price applications using a subscription fee, most commonly a monthly fee or an annual fee. Consequently, the initial setup cost for SaaS is typically lower than the equivalent enterprise software. SaaS vendors typically price their applications based on some usage parameters, such as the number of users using the application. However, because in a SaaS environment customers' data reside with the SaaS vendor, opportunities also exist to charge per transaction, event, or other unit of value, such as the number of processors required.
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