Software multitenancy drives operational efficiency

By Nick Hortovanyi

Over the last week, I've been evolving a presentation regarding our multitenancy commercialisation efforts through Business Portal Server. For the most part it has been received positively.

In one session that I gave though, a VC (Venture Capitalist) who was participating in the group, stated that we gave an excellent presentation but our business model was flawed. I of course disagreed prefusely. The argument presented was the classic of the internet as a disintermediation agent between organisations who provide SaaS services and the consumers there of. However, the model I see, is that new channels will evolve through eco systems of organisations working together. These organisations will focus in their particular areas of expertise be it software application focused or technical infrastructure to form stronger composite services.

The larger organisations that I deal with for on-premise consulting are continuously trying to reduce the number of vendors that they interact with. The lower the number, the less points of interactions. The argument being here the more efficient the internal procurement process. I believe also, that there is limits to the number of meaningful relationships that can be maintained to add value.

The complexity of development and support of production SaaS infrastructure is growing rapidly in complexity. Its only natural for consolidation and specialisation to follow. How these organisations work together will form the new software channels. It will also be shaped, rightly or wrongly, by procurement processes which drive how organisations purchase.