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What Are The Different Modes Of Software As A Service?

SaaS applications run on multi-tenancy concept usually on a subscription basis. Multi-tenancy is the capacity to offer applications to users on a shared infrastructure. Instead of hosting on individual user machines and escalating the prices, multi-tenancy approach makes it more cost efficient for the users. There are two main methods that SaaS (software as a service) is offered:

- Simple Multi-tenancy: Users are given resources as per their needs and are not shared with any other user. It is cost-efficient, in the sense, it involves sharing of maintenance overheads, labor costs and data center costs including energy, network etc. It does not require any code changes and gives individual users more isolation and privacy. But it requires the users to be very competitive in their prices and this could mean lower margins. It does not scale efficiently.

- Fine-grain Multi-tenancy: This too has similar features with resources being shared among multiple users. They are hosted in a private environment and users can scale their requirements far more efficiently. It is a little complicated as it requires changes in the data model and applications must be rewritten to suit each one's needs.

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