What is the purpose of depositing source code with a third-party escrow agent?

Depositing source code with a third-party escrow agent serves primarily to protect against vendor bankruptcy, ensuring that if the software vendor goes out of business or is otherwise unable to maintain the software, the source code remains accessible to the client. This safeguard allows organizations to continue using and possibly maintaining the software without depending solely on the vendor. By having access to the source code, businesses can either modify it as needed or migrate to alternative solutions, thereby mitigating risks associated with vendor instability.

While ensuring software integrity, enabling updates, and reducing costs are important aspects of software management and lifecycle, the primary and most critical purpose of an escrow agreement revolves around securing long-term access to the source code, especially in scenarios where the vendor might no longer be available to provide support or updates.