There has been a lot of discussion over choosing between multi-tenant and hosted cloud ERP solutions. There are arguments that favour both sides of the argument and yet, sometimes, one side or the other wins the argument over particular factors. Multi-tenant cloud ERP solutions are becoming increasingly popular because they come at a reduced cost.
Companies do not need to spend money on infrastructure and instead, they buy ERP solutions that are made for everyone else. This helps them to access tech support and advanced ERP without having to invest in hosted solutions. On the other hand, hosted ERP is more customizable and it is easier for companies to have an on-site ERP solution, especially if they have the kind of infrastructure to support it.
Nevertheless, hosted ERP solutions come at a greater cost and the world is moving towards multi-tenant ERP solutions. What we need to remember is, whether hosted or multi-tenant, by the 2030s, we will all have moved towards cloud based enterprise solutions as opposed to much earlier methods. Let us take a look at what hosted cloud solutions and multi-tenant cloud solutions have to offer us.
What does a Multi-Tenant Environment Offer?
A multi-tenant cloud environment comes with many advantages. There is usually just one copy of the database, OS and application. It supports multiple clients on a single group of servers. This leads to easier deployment and installation of updates. It is also more affordable for clients to choose a multi-tenant environment than a hosted one.
If there are upgrades to be done to the app, all the clients will receive the upgrades at the same time. However, there is less possibility of customizations and multi-tenant environments are not as advanced and functional as hosted cloud solutions today. If you are looking at cutting costs and yet have the benefits of using a cloud based ERP system, you could choose a multi-tenant cloud ERP solution.
Why are Hosted ERP Solutions Still Popular?
A hosted cloud solution on the other hand has on-site deployments making it easier for clients to do what they want. It also allows for more customizations and comes with advanced technologies. However, it is more expensive than a multi-tenant solution. Hosted cloud solutions are popular with medium sized and larger companies, who can afford to set up infrastructure themselves. This also ensures that security is tight and no inadvertent lapses take place.
Hosted solutions will continue to be popular because of their versatility and robustness. Yet, if you feel you are cash-strapped or you are confident that a multi-tenant environment will satisfy your needs and requirements, go ahead with that.
Considering these factors, which one is finally right for you?
When it comes to choosing between multi-tenant and hosted cloud solutions, you must consider what your requirements are, how much customization you need and how much you can really afford. When you do a reality-check on your situation, it will be easier to choose between the two of them. Both come with their set of advantages and disadvantages.
However, what is truly clear is that we are all moving towards a cloud-based environment very quickly. If you are unable to make a decision, speak to a trusted ERP consultant who will be better able to make a decision for you, or to help you make a decision. Wants to know more about exactllyERP? Feel free to Contact Us and get a Free Demo.