Cloud ERP, multi- or single-tenant SaaS: what are the differences?


Companies today seek to refocus as much as possible on their core business, in particular by reducing the maintenance burden of their applications. ERP is no exception to this trend, especially since it is a vast solution that integrates with the entire company system. However, it is important to distinguish between a Cloud ERP, a multi-tenant SaaS ERP and a single-tenant SaaS ERP in order to equip yourself with the appropriate solution for the objective and profile of the company.

 


ERP in the cloud


Not all ERPs in the Cloud are created equal, and it is important to distinguish between a historical ERP migrated to the Cloud, and an ERP (re)developed specifically for the Cloud in a SaaS model.

 

Migrating an ERP so far on-premise with a host allows users to access it online. However, when the ERP technology remains the same as its on-premise version, not designed for the Cloud, the benefits are limited. The deployment remains similar to what is done on site - in summary, it is a question of replicating the on-premise deployment on the host's servers. Environment management remains the same, without more flexibility or automation.

 

When the objective is simplification and added value in ERP management, this type of migration to the Cloud does not offer all the advantages of an ERP whose technology is designed for the Cloud. This is why, if your publisher is content to migrate its ERP to the Cloud as is, prefer a publisher who is developing a version of its ERP that is truly designed for the Cloud and the SaaS model.

 

SaaS ERP to make the most of the Cloud


A SaaS ERP offers a real alternative to on-premise deployment. It provides the ideal solution in an approach that seeks to remove the burden of service management (human time and costs) and encourage a refocusing on the core business.

In the SaaS model, the ERP publisher upgrades its ERP to a Cloud-ready technology – in other words, capable of delivering additional services compared to a solution simply migrated to the Cloud. The infrastructure is made available by a public cloud provider, a specialist in the field. The publisher can then use different infrastructure methods and options to offer a multi- or single-tenant solution – either shared between several customers, or dedicated to a single customer.

 

The advantages of a SaaS ERP


  • Flexibility: ERP SaaS allows much more flexible deployment than a solution simply migrated to the Cloud. Indeed, the technology of an ERP SaaS lends itself to the automation and management of a fleet of multiple deployments, whether these are dedicated to a company, or shared. Among other things, a SaaS ERP saves the company manual updates of environments that are supported and automated by the publisher.
  • High availability: the specificity of a SaaS ERP lies in its technology that is ready against interruptions. While the availability of a “simple” Cloud ERP can be expensive and complex, that of a SaaS ERP takes advantage of the public Cloud infrastructure on which it is based. In particular, the publisher may plan to use different hosting sites made available by its cloud provider, with data replication on at least one secondary site. The guarantee of a transparent takeover for the user, if the main site underlying the ERP SaaS experiences a problem or an interruption.
  • Much lighter charges: on the one hand, the financial charge for accessing a SaaS ERP is limited to the all-inclusive monthly subscription, which is included in the operational charges (OPEX). The company therefore avoids an initial capital investment (CAPEX) essential in the on-premise model where it is necessary to buy licenses and equipment. On the other hand, the company has no resources to allocate to the maintenance of its ERP. Thanks to the outsourcing model included in the SaaS, all IS management is outsourced to the publisher, which ensures the security, updating and availability of the ERP.


Mono or multi-tenant SaaS ERP?


The ERP SaaS offer includes both models, including a mix with a multi-tenant infrastructure, but a single-tenant application.

 

In the multi-tenant SaaS ERP model: a single deployment, a single application and a single database engine shared between different users, and partitioned between them. The model provides solid security with hermetic partitioning between different companies and different users, in particular thanks to fine-grained access management. Thus, everyone only accesses their “share” of the application. Users have the application life cycle in common: updates and new versions are managed by the publisher, at the same time for everyone. Likewise, the bet provision of a test environment similar to production to validate new versions takes place over the same period for everyone. Users must therefore organize themselves according to this timing to test new versions and ensure their compatibility with their processes.

 

The personalization of the application by user can be done on different axes in the multi-tenant model. However, the bouquet of parameters remains the same for all users, without the possibility of creating a single personalization axis for a company.

 

In the single-tenant SaaS ERP model: one deployment, one application and one database engine for a single company. The interest of the single-tenant lies in a privileged management of the application. In particular, the rhythm of updates and the launch of new versions adapts to the customer. The latter therefore retains control over the rhythm of the life cycle of its ERP. He also has greater freedom to use the test environments when it suits him. Additional comfort to avoid any issues with new releases on complex processes in business critical areas.

 

In terms of customization, a single-tenant SaaS ERP allows you to go much further. The publisher can make custom developments to extend the solution. Example: create a feature that connects a scale on customer site to the ERP, with automatic transmission of weights. This type of functionality, very specific to a given company, remains accessible in a single tenant.

 

How to choose the right SaaS ERP?


Discover below 4 criteria to choose the right SaaS ERP for your company.

 

1. Company Profile


It all depends on whether the company's processes are well established, without extreme complexity in strategic areas. In this case, a multi-tenant ERP can meet its management needs. On the other hand, the mono-tenant is strongly recommended for complex processes. In these cases, it is important to benefit from time to validate the conformity of updates and new versions. Other user profile: a multi-company group to which a single-tenant deployment makes it possible to synchronize the version upgrade processes of its different entities.

 

2. The wealth of services and maturity of the solution


A SaaS ERP comes with services offered by the publisher. In addition to providing an upgrade test environment, what other services are offered? The more mature the solution, the more its service offer will be expanded. For example, it will include supervision, strong authentication, Business Intelligence (BI). And users should be able to easily access these additional capabilities, simply by taking the relevant license. In addition, the publisher will evolve these services by allocating new functionalities to them over time to anticipate the needs of its customers.

 

3. Availability


Supposed to be high-level, the availability of a SaaS ERP is checked with the publisher: does it use several hosting regions of its Cloud provider? The management of the availability of the ERP by its editor must indeed provide guarantees, particularly in terms of secondary site.

 

4. The scalability of the solution


The ability to integrate the ERP with other Cloud or SaaS solutions of the company must be verified. Indeed, a SaaS ERP must be able to communicate via web services with other solutions, while maintaining the security standards in place.

 

A SaaS ERP thus brings all the advantages of the Cloud, including flexibility, automation, simplification, security (backups via data replication, better protection against cyberattacks, etc.). Added to this are lower costs, both in maintenance and material resources, and in money thanks to an all-inclusive monthly subscription price. This is why it is increasingly adopted by enterprises and promises to gain traction in the ERP market in the future.


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