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Differences between Multi-Tenant and Single Tenant Cloud ERP Solutions

As we have issued a discussion about the fundamental understanding of Cloud Based ERP, we were able to grasp a deeper insight and encounter different terms that define and in line to Cloud ERPs. With such thing in mind, let’s extend the definition of a Cloud ERP and talk a little deeper about these through the classification of Multi – Tenant and Single Tenant Cloud ERP’s.

Multi – Tenant or Single Tenant? Which is best?

Making a decision to move to Cloud ERP or even considering it is such a huge step for your business, and figuring out whether to opt for a Multi – Tenant or Single Tenant Hosting Solution would be another matter.

Multi – Tenant  ERP’s

A Multi – Tenant ERP architecture is where multiple enterprises share the same instance in a single database. Serves multiple users in a single instance of software and supporting infrastructure. Designed, developed and deployed for cloud environment. Constant upgrades resulting to vendor can innovate and adapt to the market pretty quickly since they only have single version to support and improve. With single version software, security is tighter as vendor can simultaneously fix and configure the software.

  • Fast Deployment (Usually a Few Months)
  • Seamless & Automated Upgrades
  • New Features Released Regularly
  • Cost Effective


  • A wider array of resources available to more people in your organization without slowing down applications and worrying about security and privacy.
  • Cloud Based storage locations offers greater flexibility and accessibility from any location and device.
  • Fewer maintenance cost associated to subscription as scaling has fewer maintenance implications for multiple users.

Single Tenant

Single Tenant ERP’s are a hosted solution with an architecture where each users has their own instance of the business application and supporting infrastructure. Serves single user in a single instance of software and supporting infrastructure.  Accessible through web or mobile with each own version of software and support. It can be configured and customized to your preference and a no sharing instance that separates each

  • Easy backup and restore
  • Enhanced Security
  • Easy Migration
  • Individual Upgrade
  • In Most Cases Current and One Previous Product Release Are Supported


  • Full control over the environment, upgrades and update;  accordingly customize the platform based on user’s preference.
  • Designed with own user system allows for increased security as your data is separated from other users.
  • Backing up and restoring in database is easy since user own a separate back up.

Why it Matters

Keep in mind that not all cloud ERP’s are the same. Yes – you made the right choice to shift to a cloud based ERP so one must distinguish from one built on the cloud from the one that someone is hosting for you.

Most of the time, even the tiniest difference can make or break the success of the business thus, minimizing risk by weighing quality, pros and cons must be seriously considered, especially when dealing to business operation and must go with the wave of the rapid changes in technology.

Handful numbers of vendors can claim to have ERP’s born in the cloud and are Multi – Tenant solutions like NetSuite, compared to ones whom have migrated their solution to one and are Single Tenant.

We have highlighted the difference between Multi – Tenant and Single Tenant ERP systems.  We hope you can now countermeasure the advantages and disadvantages of different “cloud” ERP solutions out there in the market.