Traditional on-premise enterprise software is complicated and expensive. And once you’re up and running, you feel the pressure to upgrade to a new version so that you can make use of new innovations. And again you have a small software project which can cost – according to Gardner – up to 30% of the original software installation, not to mention the possible business disruption. Behind on-premise software is a world of complexity; You need office space for the data center, power, cooling, bandwidth, networks, servers, storage, and a team of expensive experts to run it. It is easy to see why big enterprises get rid of these headaches and choose to migrate to the cloud.
Run your software on a shared datacenter
Multi-tenancy is a very cost effective way to operate your software applications, because everyone shares the infrastructure and services. It costs much less than hosting on your own premises, because there is no need to invest in servers and storage and pay a technical team to keep the lights on. You can compare it to a big office building where all tenants share the costs for services like security. At the same time, your valuable IT resources can focus on what really impacts your business.
Innovation out of the box, no more upgrades
Cloud enterprise software is fast to implement, which means an early go-live – leading to faster time to value. Core functionalities are in standard, it’s easy to configure, and usually less than 10% customizations are required. While most core functionalities are build into the software, it is flexible enough to customize for a company’s unique needs, which means that you can be up and running in weeks or months – not years. The transition to cloud solutions has brought the opportunity to continually update solutions with innovative functionality, bringing new capabilities to your solution. You get innovation, performance, and security enhancements automatically.
Predictable monthly subscription
The SaaS model allows you to only pay for what you use so you can scale from a few users to thousands. You never again have pay for upgrades, because they are included in the subscription fee and you get innovations automatically. Multitenancy is a critical capability and one that separates old applications from modern solutions. Many customers believe that this is critical to their strategy as it allows them to plan for their IT spent just like electricity and it frees them of the business disruption and financial burden of undergoing software upgrades. This means that customers have a lower cost of ownership, faster time to value, and continuous updates.