Escrow reduces reservations against

SMEs

Solutions offered by SMEs are often not even considered because buyers have concerns about reliability. Escrow can help.

Case Study III

Key Players Dictate Processes.

The Situation

A large logistics company asks the freight shipping companies it works with to switch to its new software system that is supposed to accelerate workflows and reduce dock time. The timetable requires them to switch to the new software within six months. In particular, an obsolete barcode scanning program has to be replaced with a customized application.

The Problem

One of the shipping companies affected calls for tenders. One of the bidders, a small software manufacturer, offers a technologically innovative solution specially developed for this use. The bidder is confident that, due to the product’s outstanding features, it will win a foothold in a new market. A disadvantage is that the software company was founded only two years ago and has no references to show.

The Danger

In an effort to minimize risks, the shipping company turns instead to a large software company and buys their oversized, expensive solution based on a well-known standard software product. The solution offered by the small company was not even considered because there were too many concerns about reliability and investment security.

The Solution

By proactively offering software escrow, software vendors can dispel reservations about investment security right from the start. Offering software escrow proves that you have a customer service orientation and a high standard of quality. It also allows buyers to base their decisions on the software essentials:  the degree of innovation and productivity.