Most of the time, it's important to select your business's software tools based on what they can do. Your team has a list of required functions and the best software is simply the one that can do those functions the best way while fitting within the budget. But the underlying structure of the tool matters, too. Multi-tenant and single-tenant software can offer the same functions, pricing, and utility, but they go about it slightly differently. Here's why it matters:

What core functions does your business need?

Despite differences in product offerings, business models, and data usage, most companies have similar underlying structures. They have the same departments (depending on the size of the operation), sales pipelines, and even contractual terms of service for their clients. That's why so many businesses have switched from using custom-created programs and database systems to subscription-based ERP tools that are largely one size fits all.

Businesses that are adjustable and can reorganize procedures to fit what tools offer can make use of these programs, especially multi-tenant software. But companies with specific needs may need single-tenant software.

What are multi-tenant software tools?

When you pick an automation tool, it's almost certainly a multi-tenancy type. These tools have a single instance of software and don't have customization options. Individual companies may be able to adjust the format, layout, and pick between a selection of widgets, but it's inherently modular and you can only use the tools that have been created for everyone. 

How is single-tenant software different?

Single tenancy means there a new instance of the software per each company. If you need a completely customized aspect, the software designers can do that. Even better, the tools for designing new elements and configurations are given to your system administrators, so the people who know the company best are the engineers.

No matter which variation you need, automated tools that align with your work processes are the best way to make your business more efficient. Explore our tips and strategies to find the software that works best for your company.