If your company has made the move to an ERP, or Enterprise Resource Planning system, you may still be trying to figure it all out. There are several technical considerations that an organization needs to consider before jumping to a conclusion on best practices. One of the biggest decisions a company will have to make is choosing between a single or multi-tenant approach. Depending on which architecture type is determined, the impact it has on the end–user experience can make or break one’s digital journey.
Single Tenant Solution
Each tenant in a single–tenant hosting architecture has its own instance of an ERP application and infrastructure. Since the ERP is hosted on a cloud server, the app can be accessed via the internet. The ERP can be configured and customized to your liking due to this type of architecture. If you are operating a single–tenant web-based ERP system, you have eliminated the need for hardware as well the time and money that goes into training. Since the ERP and all other apps are hosted within one instance, privacy will naturally increase.
Multi-Tenant Solution
A single instance serves multiple customers in a multi-tenant hosting environment. From there, companies can share the same infrastructure to store their business data. This type of architecture is popular amongst businesses due to cost mainly. The price is typically lower than single-tenant solutions because fees are shared across all tenants.
Benefits
Single Tenant :
Security: There isn’t any system out there that is 100% safe. However, opting for a single–tenant environment allows for increased security. Your data is kept separate from others, and no one can “accidentally” access it.
Reliability: This type of architecture is known to be more reliable because one user’s performance will not be affected by another customer’s performance.
Easily Restored: When it comes to backups, you have more control. Backups occur on one server as opposed to multiple.
Migration: Moving to a self-hosted environment is typically less complicated with a single tenancy. The overall process is more user-friendly and is not as overwhelming.
Control: This may be the most important benefit of all. You have full control over the environment, meaning you have the power to customize the platform to your liking. You also have control over upgrades and updates.
Multi-Tenant:
Vulnerability: A multi-tenant environment creates multiple access points, which can be very dangerous if a cyber attack occurs.
Backup and Restoration: Unfortunately, there are not many options for backups and restorations for this type of architecture. This is something that is currently being worked on, and currently is a complicated matter for users.
Less Control: There’s a fewer number of customizations available and a lack of overall control for organizations.
System-Wide Risk: If one thing happens to one tenant, then all tenants are affected. This can cause an unforeseen issue at any moment.
Drawbacks
Single Tenant:
Cost: This is probably the biggest limitation that can cause companies to opt for multi-tenancy. Single tenancy requires more time, more resources, and, yes, more money.
Maintenance: Users will have to implement their own updates and upgrades.
Resource Utilization: In this type of environment, the usage of resources isn’t always maximized, which makes for less efficient use.
Multi-Tenant:
Vulnerability: A multi-tenant environment creates multiple access points, which can be very dangerous if a cyber attack occurs.
Backup and Restoration: Unfortunately, there are not many options for backups and restorations for this type of architecture. This is something that is currently being worked on, and currently is a complicated matter for users.
Less Control: There’s a fewer number of customizations available and a lack of overall control for organizations.
System-Wide Risk: If one thing happens to one tenant, then all tenants are affected. This can cause an unforeseen issue at any moment.
As you can see, there are several pros and cons to both. It really comes down to your goals as an organization. Multi-tenancy may be more comfortable, but a single–tenant solution may be more reliable and secure. If you have a specific question, reach out to us! We have a team of highly skilled Solution Architects, Consultants, and Developers that can take on any project, large or small.
