Percipient looks at the reality of the cloud and examines the difference between single and multi-tenant deployments.
Single-tenant, multi-tenant, hybrid, SaaS, public, private; with cloud computing taking on so many different shapes and with so many different naming conventions in play, it’s hardly surprising that when it comes to knowing which ‘cloud’ is right for your business the situation can seem cloudy. For Software-as-a-Service deployments and solutions (or SaaS as they’re more commonly known), things can get even more confusing.
It seems that SaaS has become a generic term for everything cloud, but this isn’t the case. There’s the option to go single-tenant or multi-tenant with a SaaS deployment, with the different approaches appealing to different organisations depending on their specific needs. Also, there’s the fact that not all solutions are built in the cloud, with a great many systems simply on-prem versions that have been shifted to the cloud. Take all this into account and it’s not difficult to see why ‘heading to the cloud’ can be far from a straightforward business decision.
To help bring some clarity, firstly let’s look at the difference between single- and multi-tenant deployments.
Single-Tenant
In single-tenant architecture, the customer has a single instance of a system or application dedicated to them and them alone, with the provider delivering separate software and server resources for each customer. Full control rests with the customer when it comes to software customisations, hardware and infrastructure management and maintenance.
So, what does this mean for the customer?
Single-tenant gives the customer greater control over the system or application, which is why it can be so appealing. At the same time, however, it requires more in-house resources and effort to manage, not to mention a much larger investment. Because it works by providing a unique ‘instance’ of a system on a dedicated server, customers still face costs for customisations, upgrades, integration, and support and service. And, while it does afford organisations more flexibility when it comes to addressing business-specific requirements, a lack of scalability can stand in the way of growth.
Some businesses opt to ‘lift’ their legacy, on-prem systems and ‘shift’ them to the cloud, taking any customisations or business-specific functionality they would like to keep. This means they also keep perhaps outdated processes perpetuating some of the inefficiencies that a move to the cloud is supposed to help eradicate.
While single-tenant is often the approach of choice for those businesses who like to retain total control over their IT infrastructure and systems, it’s important to remember that it requires the same time-consuming and expensive upgrades as on-prem solutions, and the somewhat rigid structure of the very nature of single-tenant does limit just what changes can be implemented.
Multi-Tenant
Multi-tenant is where a vendor delivers systems and applications to multiple customers from a single, unified infrastructure. Customers work from a shared system (with a single set of resources, application infrastructure and database) but can only unlock their data.
So what does this mean for the customer?
There are no upfront fees, capital investments or long-term commitments because customers do not buy, license or manage the underlying hardware, software or networking infrastructure. It makes for an easier, less expensive start-up experience, with fewer hardware requirements and is certainly less resource-intensive than a single-tenant deployment. As customers aren’t reliant on their in-house teams to manage the infrastructure or the solution itself, it frees up teams to focus on adding more value to the business, through more strategic activities.
Upgrades are performed at no additional cost, and there’s no need to schedule large-scale upgrade events as smaller, continuous upgrades are carried out as they’re released and implemented by the provider. This means less downtime and more up-to-date solutions.
Multi-tenant deployments give customers access to huge amounts of storage and security measures, much greater than if managed in-house. And, the fact that these costs are shared among multiple business users means that providers can offer lower prices. It’s easier to keep control of costs with a multi-tenant deployment too, as there’s no need to pay for extra staff, security or storage, for example, to handle peak periods.
Ultimately, with a multi-tenant deployment, providers need to keep multiple customers happy, a fact that compels vendors to consistently push the boundaries of their software, embracing innovation to ensure their customers have access to broader and richer capabilities and functionalities.
Solutions Built for the Cloud
Whist products and applications can of course be built locally and deployed to a cloud-based server, with the solution itself accessed and utilised through a web browser, often it’s true cloud-based solutions, so solutions that have been built in and specifically for the cloud, are the most effective.
Sage Intacct is a good example of a true, cloud-based solution that has been built in the cloud, delivering flexibility, reliability, scalability and value, and representing a future-proof technology investment.
So why is this?
Agility
Regular updates keep solutions modern, with localisations for new regions and up-to-date regulatory parameters for timely compliance. Updates are scheduled for the least disruptive times, resulting in minimal downtime and meaning that customers can be confident they’re always using the most up-to-date version of their chosen solutions.
Reliability
True cloud solutions are underpinned by world-class infrastructure. They’re built to deliver 24x7x365 operations, continuous backups, disaster recovery and superior security. What this means is unparalleled performance, reliability and security, going above and beyond what you could ever provide at an enterprise level.
Scalability
Cloud solutions are built for the long-term, able to scale and flex easily and effectively in line with changing business requirements and even the steepest of growth trajectories. This means your solutions don’t hold you back, supporting your business as it develops, enabling rather than hindering growth at every step of the way. Plus, as cloud applications can be provisioned immediately, you can hit the ground running, adapting quickly and effectively as and when requirements change.
Best Practice
With a true cloud solution, customers must commit to adhering to proven, standardised processes and best practices, representing an ideal opportunity to streamline operations by implementing the most efficient ways of working right across the business. So, not only do considerable cost savings come from avoiding the capital investments and operating expenses associated with an on-premise system, but true cloud systems drive higher ROI through time and process efficiencies.
The era of the cloud shows no signs of going anywhere soon, so businesses need to make the right decisions today to stand them in good stead for the longer term. By choosing true cloud-based solutions, businesses can be sure they’re investing for the future, with the right solutions deployed in the right way delivering the agility, resilience and scalability needed to succeed, securing a tangible ROI in the process and laying the foundations for continued and sustainable business development.
Cloud-Based Accounting Software UK
If you would like to know more about Percipient or the benefits our cloud solutions and services could bring to your business, get in touch or call us on 01606 871332.