npower

software escrow - a fundamental part of npower's business continity strategy

About
npower is the retail arm of RWE npower, a leading integrated UK energy supplier, part of the RWE Group. RWE npower operates and manages flexible, low-cost coal, oil and gas-fired power stations and develops innovative energy-related technologies.

Challenge
With over 6.5 million residential and commercial accounts, npower depends heavily on its IT systems to manage billing and payments.

The majority of systems are supplied through a third party, meaning that npower does not own or control the source code which is required to support and maintain the technology.

When developing its business continuity and disaster recovery strategy, npower wanted some assurance that core areas of its business, could still function should there be an issue with the supplier of a key application in the future.

Phil Morcombe, Project Manager, npower commented: "Our business continuity strategy specifies that all applications which are fundamental to the operation of the business must be protected under Escrow.”

Solution
npower has protected its business-critical software applications with Escrow Solutions since 1999, so when it recently implemented a new credit management system, it ensured that provision for Escrow was included in the contract with the supplier.

NCC Group’s escrow solutions provide a smart, simple way of protecting both supplier and end-user, by covering every business critical application or third party supplied software-as-a-service with a software escrow solution.

Under the terms of its straightforward agreements, NCC Group holds a copy of the application source code which npower depends upon but does not own. The source code is deposited along with all the information, scripts and codes needed to use and maintain the software, by the supplier.

npower also commissioned NCC Group to conduct rigorous 'Full Verification' testing of the source code prior to depositing it in Escrow.

Full Verification testing is a process where the source code is actually re-built into the user's software application and requires the full co-operation of the supplier to ensure all relevant components, scripts and source code are present. The entire build process is audited and recorded within the resulting Full Verification report which would be used by the client to build and maintain the application should it ever become necessary for the source code to be released under the terms of the Escrow agreement.

Results
If a ‘trigger event’ should occur that would render a supplier incapable of fulfilling its contractual obligations, npower would be able to maintain and support the application in-house or appoint a qualified contractor to do so.

“With many computer services companies going into liquidation each year, escrow cover is essential for all organisations who depend on software applications to deliver services to their customers,” commented Jon Leigh, Director of Escrow Solutions, NCC Group.

Morcombe concluded: "We have been through the Full Verification process several times now and view it as a viable, cost-effective insurance policy to get our systems back on track in the event of them ever having to be re-built."
-------------------------------------------------------------------------------------------------------NCC Group is a leading global provider of independent IT assurance, security and consultancy services. As a trusted advisor, we help over 15,000 public, private and not for profit sector organisations, including 92 of the FTSE 100, to make the most efficient use of information and technology and to manage the associated risks.

Quote

“We have been through the Full Verification process several times now and view it as a viable, cost-effective insurance policy to get our systems back on track in the event of them ever having to be re-built.”
Phil Morcombe, Project Manager, npower

Challenge

When developing its business continuity and disaster recovery strategy, npower wanted some assurance that core areas of its business, could still function should there be an issue with the supplier of a key application in the future.

Solution

npower partnered with the world’s largest software escrow provider, NCC Group to ensure that escrow provision was in place for every business critical application

Results

If a ‘trigger event’ should occur that would render a supplier incapable of fulfilling its contractual obligations, npower would be able to maintain and support the application in-house or appoint a qualified contractor to do so.