Best Practices for an Enterprise Cloud Architecture

Sep 29, 2021

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If you have come across the word "tenancy," you may wonder what it means. Concerning cloud computing, "tenancy" depicts a shared IAAS, PAAS, or SAAS infrastructure between varying customers. If you take an apartment building, you'll notice it has exterior walls, utilities, and even mechanical equipment--this is IAAS. On the other hand, HOAs or apartment managers can manage your residence and provide maintenance, which costs less than owning and maintaining a home - you can compare this structure to a PAAS or SAAS provider. In this blog, we'll explain enterprise cloud architecture further and expand upon single-tenant vs. multi-tenant.

What Is a Multi-Tenant Cloud?


A multi-tenant ecommerce cloud describes an infrastructure offering storage and access to multiple tenants. Yet, there are a few challenges, such as organizations using up more shared resources than other tenants. It is possible to address this issue at the hypervisor or architectural level. Nonetheless, a single-tenant cloud solution is a more feasible solution for organizations that want scalable provisions.

Single-Tenant vs. Multi-Tenant


Let's look at the real estate comparison; a single-tenant environment is similar to a single-family house where homeowners may share city utilities with their neighbors (IAAS), they still own the HVAC (SAAS), walls, roof, and maybe even the yard.

So what's the difference between single-tenant and multi-tenant? Well, each has a different number of software instances. Single-tenant uses one platform and runs a single platform codebase. On the other hand, multi-tenant provides a single codebase for an unlimited number of users. While the multi-tenant option is more budget-friendly, you have less control and less convenience.

Best Practices for an Enterprise Cloud Architecture


It's vital to determine what type of architecture you need to align with your organization's needs. Here are a few best practices, in terms of single-tenant vs. multi-tenant, to keep in mind from the outset.

Setup and maintenance

A single-tenant environment will cost more as it requires more resources for setup, maintenance, and customization. Yet, eCommerce vendors need new instances for each customer and can typically transfer the costs to the customers. In contrast, a multi-tenancy architecture is more economical because the costs are shared. Still, customers have fewer options for customization with a multi-tenant environment.

Speed and performance

If speed and performance are essential, then a single-tenant setting is the best choice since you do not have to share resources. Multi-tenant systems use advanced mapping, and resource distribution mechanisms yet charge more for customers who want better performance.

Backup and restoration

Organizations that value control over backup and recovery choose a single-tenant environment. Why? Well, multi-tenant vendors either have highly complicated backup and recovery procedures or don't offer them at all. Further, backup and recovery are critical for eCommerce vendors who need quick and easy backup.

Security and dependability

With a single-tenant configuration, you don't have to share your environment or a database. However, a multi-tenant setup has a larger attack surface with more access points for cybercriminals. Using a single-tenant eCommerce environment is exponentially more secure.

Scalability and efficiency

Every customer can access their virtual machines and host hardware in a single-tenant model. In multi-tenancy, single resources are shared, making it more challenging to utilize and scale effectively for each end-user. As a result, eCommerce sites can scale capacity quicker to align with traffic and demand.

Control and customization

Single tenancy offers more control over your environment, updates, upgrades, and maintenance. In contrast, multi-tenancy provides fewer options for optimization as features are universal for all tenants. eCommerce stores can have more control over how their software looks, feels and behaves in a single-tenant environment.

5 Reasons to Go Single-Tenant in B2B eCommerce


While multi-tenancy may seem more attractive due to costs, it does not offer the same control over an eCommerce environment as a single tenancy would. Let's take a look at five critical reasons why a B2C or B2B eCommerce business should select a single-tenant environment.

1. Maintain a competitive advantage in your industry

Multi-tenant applications share features with every end-user making it more challenging to remain competitive in your industry. Also, all upgrades and maintenance are performed simultaneously for everyone, causing issues for sellers in various time zones who need frictionless access to resources during peak business hours.

2. Achieve complete operational control over your environment

Providing a unique and flexible eCommerce experience requires more control over your environment. The only feasible solution is a single-tenant environment.

3. Access top-notch security capabilities

Unfortunately, there is always a remote chance that personal data can leak from one eCommerce store to another in a multi-tenant environment. As such, a multi-tenant environment is not the most secure choice for more extensive B2C and B2B eCommerce stores that manage large volumes of SKUs, revenue, and customers.

4. Manage complex business hierarchies effectively

If your eCommerce business operates multi-vendor and multi-supplier back-office hierarchies, then a multi-tenant architecture can pose a security risk. However, a single tenancy can accommodate complex business hierarchies effectively and securely.

5. Utilize a future-proof platform

While a multi-tenant framework offers faster onboarding and more straightforward upkeep, it does not provide as much flexibility as a single-tenant system. Invariably, growing eCommerce businesses need agility to pivot and expand to new markets while maintaining a future-proofed and resilient advantage.

How an Animal Supply Company Solidified Their Business With Single-Tenancy


For businesses interested in securely expanding their reach and growth, single-tenancy offers proven scalability. Consider the Animal Supply Company (ASC) approach. This leading pet goods distributor and retailer in the United States and the Caribbean operates a web of regional warehouses and support centers throughout the US.

Inheriting new warehouses, ERP, and legacy systems created a more disparate and complicated environment. ASC needed to break their silos to improve real-time data sharing and streamline operations.

Proliferating, ASC could not afford to compromise on connectivity, scalability, or capacity. Further, they could not risk increased vulnerability to security threats and data breaches. Therefore, ASC required a robust B2B eCommerce platform with the ability to support dozens of ERP systems and complex eCommerce workflows. Thus, ASC decided to use a single-tenant environment capable of supporting ASC's headless platform and order management processes while offering the necessary scalability for continued growth.

Make the Right Decision for Your Business


As you can see, there are several pros and cons to either a single-tenant or multi-tenant environment; which one is right for your eCommerce business? While a multi-tenant architecture might be a more budget-friendly starting point, it does not equal the scalability, security, added control, and future-proofed resiliency offered by a single-tenant environment.

For B2B eCommerce businesses, granular control and increased flexibility for store customizations, maintenance, and backup and recovery are essential. The more control you have over your digital environment, the more you can offer a better customer experience.

Contact us today to find out how Oro Inc. can meet your B2B eCommerce infrastructure requirements and sales objectives.