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ERP Cloud Model Options: Private Cloud vs. Multi-Tenant/Public Cloud

01/15/2019

If you have decided that deploying your ERP solution to the cloud makes the most sense for your business, there are two types of cloud environments to consider: private cloud and multi-tenant (or public) cloud. Before deployment, decision-makers need to consider the respective benefits and drawbacks that each cloud environment provides.

One common misunderstanding to clear up is that the cloud ERP deployment model you choose does NOT define the functionality available within the cloud ERP solution. For example, with SAP Business One, an ERP solution capable of being deployed in public or private cloud environments retains all functionalities no matter where the solution is hosted.

Areas your deployment environment does affect, however, are security, scalability, accessibility, and cost savings, which can directly impact business growth and long-term success.

Here is a brief comparison of private cloud and multi-tenant cloud options, and what they offer in terms of running your Cloud ERP solution:

Private Cloud

A private cloud ERP environment is a secure cloud computing environment dedicated to one company. Private cloud ERP deployment offers all of the same options to an organization as an on-premise environment, with several additional benefits.

For our private cloud customers, Third Wave utilizes Amazon Web Services (AWS) secure cloud services platform due to its high level of service, reliability, scalability, security, and cost-effectiveness.

Additional benefits to private cloud ERP deployment include:

  • Avoiding costly server investments;
  • Not having to share computing resources with unknown companies;
  • Full control over your ERP environment for upgrades, maintenance, etc.;
  • AWS private cloud is significantly more secure than an on-premise server room;
  • Easily add computing resources when needed;
  • Access AWS easily from anywhere there is an internet connection;
  • Quickly scale your private cloud environment as your business grows;

Multi-Tenant (Public) Cloud

A multi-tenant or public cloud ERP environment is a computing infrastructure that is shared by many businesses called tenants.

For security purposes, each company’s or tenant’s data is not visible to others within the multi-tenant cloud environment, but due to the sharing of computing resources, ERP system resources and performance can be affected.

ERP cloud deployment to the multi-tenant public cloud can mean several things:

  • Multiple organizations share computing resources, which can pose resource constraints  that result in data throttling;
  • Tenants are not in control of the timing of software upgrades, so they may occur when it is not inconvenient for your business;
  • A public cloud ERP vendor can withhold your businesses data if an issue occurs with contract negotiation or payment;

Major risks associated with multi-tenant public cloud ERP vendors, such as Netsuite, are non-negotiable price increases, loss of use for non-payment, surprise addon charges and having your company held hostage.

Learn More: Which ERP Pricing Option Is Right For Your Business?

Our Recommendation

Third Wave highly recommends a private cloud ERP environment for its notable benefits in security, scalability, accessibility, and long-term cost savings. However, there may be reasons your business isn’t yet ready to invest in a private cloud environment. For both options, choose a trusted ERP cloud solution like SAP Business One Cloud from SAP.

SAP is the world leader in ERP software, where you can easily migrate your data between on-premise or cloud deployments (public or private) without the fear of losing access to your system and data.

At Third Wave Business Systems, North America’s longest-standing SAP Business One partner, we work closely with our customer to implement ERP solutions with deployment models that make the most business sense for your company’s success. No matter how you choose to deploy your ERP solution, Third Wave ensures your data remains secure and accessible when you need it.

To learn more about choosing the right ERP cloud deployment model for your company’s long-term success, schedule a customized demo with a Third Wave expert today.

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