Digital Commerce
Replatform

Understand the Diference
SaaS Multi-tenant, Single-tenant or On-premises

According to Forrester, 64% of retailers will replatform their digital commerce solution within the next 3 years and 87% of businesses will use SaaS within the next 2 years. This is a very strategic decision as you start to grow and perceive your current vendor cannot provide you the features and scalability you need. But how do you choose between so many options?

What defines TRUE SaaS

Subscription-based software, delivered and managed by thirid-party vendedor. Many vendors, however, position themselves that way but still offer a great level of complexity for the infrastructure and or/ application leyer. To help you understand what kind of provider you are talking to, make him the following questions:

If an error or failure is found by a particular customer and then corrected, will this error also be fixed in my store?  If the code is unique, once the code has been corrected, all stores absorb that fix, meaning your code tends to be error-free.

When a new release comes out, do I have to devote a lot of time and resource to test and validate the updates to ensure my website works properly? If “yes”, it probably means that you’re not getting the benefits of a shared platform and it’s centralized development, testing and deployment mode.

Is it possible that my store is in version X and another in version Y with other functionalities? Again, if the answer is yes, your vendor works on the single tenant model or on-premises.

When a new version of the system is upgraded, is there a queue to update customers until it reaches mine?  If yes, vendor is not truly SaaS.

Customer A is online and customer B is offline, is that possible? This is, perhaps, the easiest way to verify if your supplier’s is truly SaaS or not. If truly SaaS, this is not possible.

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True SaaS
VTEX

SaaS

Salesforce (Demandware), Oracle Cloud Commerce

On-Premise

IBM, Oracle ATG, SAP Hybris, Magento

Delivery Model

  • Multi-tenant
  • Single-tenant
  • On-premises

Total Cost of Ownership

  • No license, no set-up fee, transparent pricing, pay-as-you-go, subscriptions become cheaper as your business grows, Opex, Expenses are overall better aligned with revenue
  • Potential license and/or set-up fee, Higher costs, Potential hidden and upgrade costs, Capex/Opex
  • Higher entry and operational costs, Expenditures may not be aligned to revenue since license fees are typically paid prior to revenue generation, infinite hidden costs: hardware, support, backup, operating system, middleware, database, disaster recovery environment, data centers, security certifications, etc.

Time-to-market

  • Faster implementation, Easy to use, Designed for business users, Responds in real-time to customers’ needs
  • Slower implementation, More complexity involved,  Legacy architecture
  • It requires a lot of time and manpower to implement a new environment, Hardware purchases, Additional software licenses may be needed

Some of Our
Delighted Customers