Multi-Tenancy for SaaS Providers Currently Leveraging Virtualization

For independent software vendors (ISVs) adopting the SaaS business model, the virtualization approach has been very seductive for two reasons:

• It didn’t require a rewrite of the existing code base
• It could be adopted very rapidly.

However, virtualization exponentially increases the cost of service delivery over time. The cost of goods sold for SaaS companies leveraging this technique actually increases with every new customer, negating a core business driver for moving to SaaS.

In contrast to virtualization, a multi-tenant approach delivers on the promise of cost reduction enabled by SaaS. By spreading hardware/software infrastructure and labor costs across the entire customer base, with all costs amortized across all customers, marginal costs are reduced with every new client. This differs dramatically from the virtualization approach, which requires the same fixed amount of on-boarding costs with every new customer.

At Corent Technology, we understand that it has traditionally been extremely difficult, time consuming and expensive to retool a single tenant on-premise application to multi-tenancy, despite its many advantages over virtualization.  Corent Technology has eliminated these barriers to transitioning to an efficient multi-tenant SaaS business with the introduction of the Corent Technology Multi-Tenant Server™.

Click here to learn more about the Corent Technology Multi-Tenant Server™.