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Software escrow an important guarantor of e-government, public service delivery

Johannesburg, 19 Jan 2005

Both in SA and worldwide, government policy of speeding up the use of information technology to improve service delivery to, and dialogue with, the public, makes it essential that government ensures it is able to use critical software programs in the event that software suppliers should stop supporting their products.

So important is software continuity and risk minimisation today, that increasing numbers of governments are forging partnerships with neutral, independent third-parties who, in the event that software products are no longer adequately supported, will hand over the latest version of licensed software held in escrow to the user, so that the uninterrupted use of the software is guaranteed.

Among the latest government agencies to enter into such an arrangement is Fedict, the Belgian Federal State Service for Information & Communication Technology, which teamed up with one of the market leaders, Escrow Europe NV.

Escrow Europe is headquartered in Belgium and now also has an office in Cape Town. Andrew Stekhoven, managing director of the local operation, says: "While it is not the sort of thing information technology managers like to dwell on, the reality is that software suppliers, either by design or by default, can suddenly and unexpectedly stop supporting their products.

"For example, in most of the cases when software houses merge or are taken over, the product portfolio is streamlined. The result is often that some products are no longer supported, and this possibility creates a very serious risk for the user, especially when the user is a government or a public agency which is committed to e-governance and electronic service delivery to the citizenry."

While it is true that many, if not most software agreements between users and suppliers incorporate some sort of escrow provision, organisations such as Fedict in Belgium are beginning to realise that the possible loss of business continuity makes a more rigorous and robust escrow strategy essential.

Dominique Volon, General Manager Service Management e-Government at Fedict, says: "Up to now, escrow agreements were mostly part of the contract signed with the suppliers. But practice showed that the clauses dealing with escrow were very loosely or incompletely executed due to lack of expertise or follow-up. Therefore, Fedict will see that their software suppliers deposit their source code with a neutral and independent third-party, Escrow Europe.`

Maurice Gruyaert, director of Escrow Europe, elaborates: "There is a legal and technical aspect to a good-quality escrow agreement. It is only when both aspects are fulfilled that the escrow agreement is usable and effective. The deposited source code itself must technically be useful: the data must be readable, the material must be complete as contractually defined, the deposit must be virus free and, finally, it must be well documented so that the system can be re-built.

"Software is dynamic, constantly adapted and improved. Evidence of this is the multiple upgrades released every year. Escrow Europe, as the intermediary between the Fedict and the end-user, makes sure the deposit is updated at least once a year."

"On the other hand," Gruyaert continues, "simply because the source code 'is on deposit`, doesn`t mean that the code will be released in an ad hoc fashion. It is only when the software supplier is no longer able to provide normal support that the source code is released. Given those circumstances, it is customary that the business-critical continuity of the end-user prevails.`

According to Fedict`s Dominique Volon, in future all software suppliers to the Belgian Federal Government will have to comply with the escrow service as rendered by Escrow Europe, as part of the aim of guaranteeing the continuity of service.

This strategy, Volon points out, is the logical consequence of the decision taken by the government to speed up the use of information technology to improve service delivery to, and interaction with, Belgian citizens. Another important reason for embarking on this course is the newly adopted principles of corporate governance, which provide for increased accountability of the government`s policy. These convinced Fedict of the necessity to affirm a balanced and guaranteed escrow arrangement.

"Fedict`s software applications, as well as those developed by Fedict for other federal government services, are today ultimately essential applications whose use in the e-government services must be guaranteed in all circumstances," Volon states. "The escrow service is just one of the measures taken within a global framework to ensure continuity of these services."

Escrow South Africa MD Andrew Stekhoven points out that, given its support for e-governance, the South African government (and indeed all the other African states, via the e-Africa Initiative), is subjected to a similar dynamic.

He explains: "Our minister of public service and administration, Geraldine Fraser-Moleketi, has spoken* of e-governance as 'an important lever in the quest for good governance`, offering 'a unique opportunity for governments to reinvent themselves, get closer to citizens and forge closer alliances and partnerships with a diverse range of communities`. E-governance, Ms Fraser-Moleketi continued, 'is primarily about creating access to services for citizens, through the means most convenient to them`.

"Naturally," Stekhoven continues, "this praiseworthy vision hinges in part on the ongoing availability of technology delivery platforms, of which software forms a basic and critical part. I believe it would be beneficial to the whole e-strategy if the SA government were to consider the question of risk minimisation and the role software escrow could play in ensuring open channels of communication with the citizenry today and into the future."

* Address at the Regional Workshop on Building E-Governance Capacity In African Countries (e-Africa), 28-31 October 2002. http://www.info.gov.za/speeches/2002/02102509461003.htm.

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Editorial contacts

Cathy van Zyl
C-Cubed Communications
(021) 852 7198
Andrew Stekhoven
Escrow Europe