Ahead of its time in 2002, Locus Platform (formerly ePortal) has seen a huge change over time from a simple portal at the beginning of the SaaS movement, to a fully configurable multi-tenant platform. Locus Platform (LP) houses any number of off-the-shelf and custom applications to meet EHS customer needs.
When choosing Locus, you can be confident that your EHS software is built and supported by the experts. Our team holds degrees and certifications in environmental engineering, mathematics, computer science, and beyond. We understand the challenges of EHS compliance and build our solutions with those in mind.
The announcements by several EHS software vendors this Fall caught my attention. After offering their software on-premisses for over a decade, suddenly many are discovering and planning to introduce multi-tenant Software-as-a-Service (SaaS) while promising to continue to maintain their current on-premises or single tenant offerings. In essence, they are introducing multi-tenancy as if it were a new version of their software. This plan is not going to work! Let me explain why.
Most public announcements begin something like this: In the next several years we plan to expand our software offerings and offer our customers the option to move from their current on-premises solution to the cloud. However, is this even possible? What they consider the “cloud” may not be a true multi-tenant cloud. That train departed years ago, and most of the current EHS software vendors missed it. While multi-tenancy has been a game changer in the tech industry, many are uncertain of exactly what makes an application “multi-tenant” or why it matters.
There is a considerable degree of (intended) confusion in the EHS software space when it comes to the definition of a real cloud or better said, multi-tenancy. Companies that are considering SaaS solutions for EHS software hear all sorts of things from EHS software vendors hoping to tap into the momentum of cloud computing. Many go as far as saying “sure; we can do multi-tenant, single-tenant, whatever tenant you need!” –anything to win the job. These vendors do not understand the real cloud.
Multi-tenancy is a significant shift in computing and requires an all-new approach to the software architecture and the delivery model from the ground up. It is transformational, and customers who intend to buy the next generation of EHS software should spend the time to understand the differences. More importantly, multi-tenancy is a principle, not a software version or an upgrade. It is not an evolutionary step; instead, it is a revolution in the software delivery model and it matters in the long run for the customer.
Figure 1: The single-tenant model cannot easily be switched or “upgraded” to multi-tenant. The software architecture does not allow it for easy switch the same way as single family home cannot be “remodeled” to become a multi-tenant highrise. What differentiates multi-tenant application architecture is its effectiveness in achieving the same goal in a scalable and sustainable fashion.
Can anyone imagine companies like eBay, Salesforce, Google, Workday, or Amazon offering a “single-tenant” solution side by side to their multi-tenant clouds? I argue that any EHS software vendor who offers a single-tenant solution of any type, cannot be a serious contender in multi-tenant SaaS.
EHS software vendors with on-premise software applications or single-tenant web-enabled offerings are seduced by the seemingly low barriers to entry into the SaaS market with an architecture that leverages virtualization. This approach allows a software company to quickly offer subscription-based services of their legacy product to their initial customers. In the long run, however, this multi-instance approach just won’t scale economically. A recent wave of ownership change of EHS software companies is the best indicator that sold companies became victims of their initial success. A SaaS provider who leverages virtualization puts the long-term viability of the business at risk as more efficient SaaS competitors come to dominate the market.
Figure 2: Single-tenant requires many more vendor resources. The resource costs are eventually passed to customers. Each upgrade of the application will require each customer to upgrade independently and the ability to implement tenant management tools and tenant-specific customizations is significantly limited. The benefit of multi-tenancy is that instead of 100 copies of the OS, 100 copies of the database, and 100 copies of apps, it has 1 OS, 1 DB and 1 app on the server with significantly less vendor resources required to manage it. And it is those savings that are on a long term passed to customers.
Figure 3: Multi-tenant model requires less resources and easier (and rolling) upgrades (i.e. no version number necessary). Only one software instance and hardware stack for multiple tenants. All customers are always on the latest version of software. Locus Technologies figured this out in 1999. And they contribute their phenomenal success since then exactly to the multi-tenancy. They could scale up infinitely without adding proportional cost. Others cannot.
Figure 4: “Can’t we create a separate stack for just this one customer? I promise it’s just this one…” Even a single installation for one “special” customer, breaks the multi-tenant model. Don’t do it.
I would also add that single-tenant (hybrid) cloud applications are worse than on-premise installment. Why? Because they are fake clouds. In single tenancy, each customer has his or her independent database and instance of the software. These instances may reside on the same or different servers. In this model, a customer is, in fact, outsourcing maintenance of their application (software and hardware) to a vendor (or their consultant) that is not likely equipped to perform these tasks. No single vendor in the EHS software industry is large enough to undertake maintenance of the single-tenant infrastructure on behalf of their customers regardless of how inexpensive hardware or software virtualization may be. Even if they offer their hosting on Microsoft Azure Cloud or Amazon Web Services (AWS), they still cannot guarantee multi-tenancy as these solutions address only hardware challenges.
The Economist magazine in 2004 described it: “Those forerunners also promised a software revolution by hosting the software applications of companies. But they failed because they simply recreated each client’s complex and unwieldy datacentre in their own basements, and never overcame the old problems of installation and integration with other software. With each new customer, the old ASPs had, in effect, to build another datacenter; there were few economies of scale.”
To improve their position in a shifting marketplace, on-premises EHS vendors have found a way to market their solutions as “cloud-based” when they are not backed by the fundamental principle of what that means. Considering the large investment that is associated with the purchase or licensing of EHS software, it is critical for customers to be able to tell a true cloud product from a fake one. But how can you spot a fake?
Just ask the EHS software vendor these four questions:
If the answer to any of these questions is yes, the vendor is not committed to only multi-tenant architecture, and you should not move to their “cloud.”
Multi-tenancy is the only proven SaaS delivery architecture that eliminates many of the problems created by the traditional software licensing and upgrade model where software is installed as a single-tenant application on a customer’s premises or at a customer’s or vendor’s data center. In contrast, in multi-tenancy, all customers access the same software on one or a set of linked servers.
Multi-tenancy requires a new architectural approach. Companies have to develop applications from the ground up for multi-tenancy. Once companies commit their limited financial resources to one architecture, it becomes nearly impossible for them to switch to the multi-tenancy model, no matter how many resources they have available. Moreover, for this reason, I am skeptical that many current vendors will be able to make a switch to multi-tenancy fast enough.
A vendor who is invested in on-premise, hosted, and hybrid models cannot commit to providing all the benefits of a true SaaS model due to conflicting revenue models. Their resources are going to be spread thin supporting multiple versions rather than driving innovation. Additionally, if the vendor makes the majority of their revenue selling on-premise software, it will be very difficult for them to fully commit to a true SaaS solution since the majority of their resources will be allocated to supporting the on-premise software.
And if they suddenly introduce a “multi-tenant” model (after selling an on-premises version for 10+ years) who in the world would want to migrate to that experimental cloud without putting the contract out to bid to explore a switch to well established and market-tested true multi-tenant providers? Even Google and Microsoft are playing a catch-up game with Amazon’s AWS when it comes to cloud hosting business. The first mover advantage when it comes to multi-tenancy is a huge advantage for any vendor.
In summary, an EHS software vendor can be either truly multi-tenant or not. If a vendor has installed their software on somebody’s else hardware and runs multiple instances of that software (even if the code base is the same) they are not and will never be true multi-tenant.
Figure 5: Where do you want your software to reside? In multi-tenant or single -tenant infrastructure? If multi-tenancy is attempted on old infrastructure or legacy application upgrade watch out. After vendor built the first few floors of that skyscraper, there is no easy way to replace the foundation. You will be lucky if they end up like the tower of Pisa or Millennium tower in San Francisco. To keep the tower alive they will have to do constant underpinning of the foundation and restrict access to the structure. And you, the customer, will pay for it. That is what many customers of single-tenant EHS vendors are facing today.
Therefore, when considering a SaaS solution, make sure that the vendor is a true SaaS vendor who is solely committed to the multi-tenant SaaS delivery model and has invested in a true multi-tenant platform. This is the only way to reap all the benefits that a SaaS model has to offer.
IoT is considered one of the fastest growing trends in technology and has a potentially huge impact to automate how we manage water quality, air emissions and other key environmental performance indicators for data monitoring.
In today’s Internet-driven age, consumers are overwhelmed by an abundance of choices and information on every conceivable product on the marketplace. The same is true for businesses looking to buy software solutions. Selecting an enterprise-wide EHS&S software solution can be a feat for any organization.
Whether you have been tasked to research vendors from the EHS shop window, or you are driving the data evolution in your business to move from spreadsheets (or worse – paper) to a 21st century-ready alternative— the task at hand can seem daunting and fraught with challenge.
Establishing a timeline and setting milestones along the way will help you break down your mission into manageable, bite-size chunks. Here are some helpful tips to find the right EHS vendor for you — and remember, it’s a marathon, not a sprint!
Different departments and stakeholders will have different goals– don’t forget to consider how the EHS software solution will help them, too.
As the individual spearheading this project, you are not the only one with skin in the game, nor is this likely confined to your team. Multiple business units, divisions, and departments are not only going to have to use a new EHS software solution – they need to like doing so.
The different stakeholders also come with their own individual business goals, and they will be looking to the new EHS software solution to assist them. Can you carefully engage different areas of your business to find the key drivers?
Even better – assign project leaders within business units to join your selection process, attending demos and providing critical feedback along the way. After all, more heads are better than one.
Many of us in the EHS&S industry share similar passions, such as the desire to help reduce climate change and help businesses move to more environmentally-friendly ways of operating.
Sadly, this isn’t at the top of every company’s list of priorities. But we can all agree that the most important and critical areas are compliance-driven.
Think about which local, state, and federal regulations you are bound by and must adhere to at all costs. It’s all well and good, having a software that can calculate CO2 emissions saved from a new “green” initiative. But shouldn’t it also be smart enough to alert you when a permit is up for renewal?
Take time to compile a list of all areas you need to keep on top of. The right software should be able to keep you one step ahead, not left scrambling around, collecting data from all of your sites to meet a certain deadline.
Conferences such as those hosted by NAEM are a great place to network with other EHS professionals and ask your peers about their experience with specific software vendors.
Trying to select a shortlist of vendors to demo with is no easy feat, especially when an Internet search throws up 20 pages of results. Fortunately, there are plenty of independent sources and conferences that exist specifically to help you in this endeavor. The National Association of Environmental Managers (NAEM) is one example. Networking with other EHS professionals can lead to recommendations and “been there, done that” advice on who the key players are.
It’s also important to remember that EHS vendors are not necessarily built for every terrain, and some specialize in different areas (i.e., health and safety, air emissions, waste management, etc.). I have yet to come across two businesses with the exact same EHS needs and requirements, so remember to regard your own company as the unique entity that it is.
Once you have a feel for the vendors that are most suitable for your needs, you should start engaging sales professionals in initial 20-30 minute conversations on what you are trying to achieve, as well as finding out more from vendors on their potential suitability for your project.
Before a demo, give the vendor as much detail about your unique requirements, business processes, and ultimate goals as you’re willing to share– this will help the vendor focus on the most relevant functionality for your needs.
Once you have a shortlist of worthy candidates, the next logical step is to schedule some demos. I recommend a 60-90 minute demo to begin with – anything shorter is not worthwhile to get a full grasp on the software capabilities.
There seems to be two schools of thought regarding demos and how much information to provide to the vendor, prior to the big day. Some companies like to keep their cards close to their chest and ask to see the “out-of-the-box” functionality. Others choose to provide the vendor upfront with their detailed requirements, existing reports, and sample data, in order for the demo to focus specifically on what the customer is looking to solve.
I favor the latter approach, as it gives the vendor the opportunity to tailor the demo to the needs that are of most importance to the customer. This helps both sides to focus the conversation on exactly how the software functionality will make the customer’s job easier. Tell them what you want to achieve or what you’re struggling with, and let them do the work of showing you how their product will solve all your problems. And quite frankly, if you are looking to catch out a vendor who doesn’t have everything you need, then the relationship is already off to a pretty bad start!
Longer sessions and “focus groups” can be arranged as a follow-up. Second and third demos are par for the course in most selection processes. These additional demos will give you a chance to whittle down the competition, plus give you the opportunity to reflect and to go back to the vendors with any additional questions, requirements, and clarifications.
As you continue through the purchasing process, you will find yourself building bonds with the best vendors. This working relationship is key to a lasting experience that assists your business in getting the “mission-critical” EHS work done.
As your relationship with a vendor grows, you should start to see evidence of a cross-departmental team that is committed to your satisfaction and your business’s compliance success.
The best EHS vendors will have a healthy mix of subject matter experts, project managers, developers, and sales professionals – all dedicated to keeping your business compliant and happy enough to renew your subscription, year after year.
Pricing is obviously a concern for any customer, and it’s important that you fully understand what the vendor is going to charge you. The last thing you want is to agree on a project and implementation process, only to be hit with a hefty bill once the software has been deployed – for what you felt was a minor change.
Useful questions to ask:
Once you have settled on a vendor and are ready to embark on the implementation, the real fun begins. Now you can start to reap the benefits of your carefully planned and executed selection process.
Good luck out there!
—
About guest blogger— Remy Leaf, Locus Technologies
Remy Leaf has worked in the EHS industry for 6 years, since graduating from the University of the West of England with a BSc in Environmental Management & Sustainability. His current role with Locus is Sales Engineer, working with new and prospective customers to identify their EHS targets.
Sorry, no posts matched your criteria