The advent of multi-tenancy in software architecture emerged as a boon for several businesses that deal with and manage a large number of clients. Some examples include business process outsourcing companies (BPOs), application service providers (ASPs), internet service providers (ISPs), managed service providers (MSPs), and internet telephony service providers (ITSPs).
From the 90s, traditional ASPs hosted applications of that time for their clients. Before the introduction of multi-tenant architecture, the service providers had no option except to host applications on separate machines or as separate processes. But after using multi-tenant architecture, they could provide superior service with considerably lower operational costs.
To paraphrase serial entrepreneur Treb Ryan, the general manager of Cubeless.io and the former CEO of OpSource, it’s impossible to be successful in business without multi-tenancy. This blog post discusses what multi-tenancy is and how it helps several service-providing businesses manage multiple clients in an extremely effective manner. Read on and thank us later.
What is multi-tenancy?
In the context of software, multi-tenancy refers to the ability of a single instance of software to run on a server and serve multiple clients, or tenants, keeping their data and configurations isolated from one another.
A multi-tenant architecture involves the development of a software application, which provides each tenant a dedicated share of the instance, including its configuration, data, user management, tenant individual functionality as well as non-functional properties.
How does multi-tenant IP PBX software enable businesses to manage multiple clients so efficiently?
Multi-tenant IP PBX software is designed to address unique communication requirements and offer a range of benefits for businesses that manage multiple clients or locations.
- Centralized management
Multi-tenant IP PBX software enables administrators to manage multiple clients (tenants) using a centralized platform in which they can make configurations and monitor performance from a single interface.
To understand this better, let’s take an example of two BPOs. One leverages single-tenant IP PBX software while the other uses multi-tenant IP PBX software. The BPO that uses single-tenant IP PBX software cannot allow its clients to access its portal and monitor live performance and updates. Instead, it sends analytics and reports to the respective clients at the end of the day.
But the BPO that uses multi-tenant IP PBX software can enable its clients to log into its portal and generate real-time reports on various Key Result Areas (KRAs) and Key Performance Indicators (KPIs.) That’s the power of multi-tenant IP PBX software—it enables all tenants to monitor performance from a single interface. This streamlined approach enhances operational efficiency and simplifies account management and reduces the complexity of managing individual communication systems for each client.
As businesses expand, their communication needs grow by leaps and bounds. For instance, a BPO or an ISP that started small with a handful of clients will not only add many new clients every month but will also expand to other geographic areas as its business grows. In such a scenario, it will need a software solution that can accommodate its rising needs.
Amazon’s CTO Werner Vogels best-described scalability by saying, “A service is said to be scalable if when we increase the resources in a system, it results in increased performance in a manner proportional to resources added.”
That’s what multi-tenant IP PBX software is all about. It enables businesses to add new tenants, users, extensions, or locations to the system without disrupting ongoing operations. This not only accommodates changing demands of businesses efficiently but also ensures optimal resource utilization as per the expansion of businesses operations.
- Cost efficiency
If anyone wants to know how cost-effective multi-tenant solutions can be, then they must read the quote of Lars Dalgaard, the co-founder and former CEO of SAP SuccessFactors—“As a result of multi-tenancy we have achieved the lowest cost per seat in the SaaS industry.”
For a BPO or an ISP or an MSP, cost efficiency is extremely important. As these businesses serve multiple clients with different communication needs, they must optimize the total cost of managing separate communication systems for each client. A single instance of software usually involves a certain amount of costs, which can be huge when it’s multiplied by many customers. Multi-tenancy reduces the cost by spreading it over several customers. By using multi-tenant contact center software, businesses can enjoy considerable cost savings.
Multi-tenant IP PBX software also comes with a feature called least cost routing (LCR), which finds the least expensive path to handle both incoming and outgoing calls from various sets of options such as call rates, carrier fees, and geographic considerations. Saving a couple of cents per call may not sound like a big deal. But just imagine the cost savings for organizations that handle hundreds or thousands of calls every day.
- Customization and segmentation
Different clients (tenants) have varying needs and unique communication requirements. Businesses like BPOs, ISPs, and MSPs deal with a wide array of clients and each of them has unique communication needs. The ability to customize and create suitable segments for these clients is indispensable for the seamless management of tenants.
Single-tenant IP PBX software, designed for a single client, will not allow efficient customization and segmentation. Multi-tenant IP PBX software, on the other hand, excels in this aspect. It empowers businesses to configure and adapt communication services to match the preferences and requirements of individual tenants.
By offering advanced customization and segmentation capabilities, multi-tenant IP PBX software enables customization and segmentation of communication services based on the specific needs of each client. By leveraging multi-tenant IP PBX software, businesses can tailor features, permissions, and configurations to match the preferences of individual tenants, enhancing the client experience.
- Security and privacy of client data
When a business deals with multiple clients, then it becomes extremely important for them to maintain the highest standard of privacy and security of their confidential data. To quote Google’s Co-founder Larry Page, “Privacy and security are really important. We think about it in terms of both: you can’t have privacy without security.”
Single-tenant IP PBX software cannot provide the level of privacy and security of client data that organizations such as BPOs, ISP, and MSPs need. But when it comes to multi-tenant IP PBX software, it is a different ball game altogether.
Multi-tenant IP PBX software ensures data isolation between tenants, preventing unauthorized access and protecting sensitive information. This makes it a reliable choice for businesses that deal with confidential communication needs.
All said and done,
Be it customization, security, cost efficiency, or scalability and flexibility, multi-tenant IP PBX software can provide a wide range of benefits to those businesses that serve a large number of clients. Multi-Tenant IP PBX software emerges as a game-changer in terms of providing customized and seamless communication experiences to their clients.
No doubt, multi-tenant IP PBX software can provide a huge advantage to businesses. But the key is to find the right software in such a highly competitive and crowded market. When looking for the right solution, it’s extremely crucial to choose a reliable and reputable software provider that has a proven track record and years of experience in providing high-quality software solutions to all types and sizes of businesses.