Yet Another (ex-)VC Blog

Yesterday I posted a comment on SAI regarding Oracle’s use of a single tenant SaaS delivery model for CRM on demand.

I can understand why some customers want to be hosted on their own physical hardware.  However, I think this is actually a really bad idea from a service reliability perspective.

Think about it: if Salesforce.com has a service issue which affects a large number of customers, they are going to respond as quickly as possible and give the situation the highest sense of urgency.  Whereas in a single-tenant scenario like the one proposed by Oracle, if you have an issue that is isolated to your single-tenant infrastructure, there  will be much less urgency in resolving your issue.  After all, you are just a single customer.

I can’t take credit for this idea as I had heard it several years ago from the guys at Keynote Systems.  Those guys have a whole business around SLA monitoring so I give it a great deal of weight.  It made alot of sense then and I think it really does now in this cloudy world.

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