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The importance of multitenancy in EHS software buying decisions

In 2025, there’s been a considerable increase in inquiries related to multitenancy and why it matters for EHS software, ESG Reporting, sustainability metrics, and more. Locus Technologies has been leading the market for two decades as the original multitenant EHS platform. During that time, we’ve watched countless single-tenant or on-prem competitors try to deflect when asked if they can deliver a multitenant solution. Considering the surge in interest in recent months, we are dusting off some of our earlier posts on the topic. This is one of those posts.

The announcements by several EHS software vendors this fall caught my attention. After offering their software on-premises for over a decade, suddenly many are discovering and planning to introduce multitenant Software-as-a-Service (SaaS) while promising to continue to maintain their current on-premises or single tenant offerings. In essence, they are introducing multitenancy as if it were a new version of their software. Anyone familiar with multitenancy knows this won’t work. Here’s why.

Most public announcements begin something like this: “In the next several years we plan to expand our software offerings to give 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 multitenant cloud. That train departed years ago, and most of the current EHS software vendors missed it. While multitenancy has been a game changer in the tech industry, many are uncertain of exactly what makes an application “multitenant” or why it matters.

Locus Multi-Tenant Software

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, multitenancy. 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 multitenant, single-tenant, whatever tenant you need!” –anything to win the job. These vendors do not understand the real cloud.

Multitenancy 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, multitenancy 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 multitenant. The software architecture does not allow for an easy switch the same way as a single-family home cannot be “remodeled” to become a multitenant high-rise. What differentiates a multitenant application architecture is its effectiveness in achieving the same goal in a scalable and sustainable fashion.

Can you imagine companies like eBay, Salesforce, Google, Workday, or Amazon supporting a “single-tenant” version of their offering side-by-side with their multi-tenant clouds? No, of course not. That would mean they had failed to decide on the fundamental strategy that would define their business, fuel their growth, and give customers the experience they’ve promised. I argue that any EHS software vendor who offers a single-tenant solution of any type, cannot be a serious contender in multitenant SaaS. Pick one; not both.

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 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, true SaaS competitors come to dominate the market.

Multi-tenant architecture

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 multitenancy is that instead of 100 copies of the operating system, 100 copies of the database, and 100 copies of apps, it has 1 OS, 1 database, and 1 app on the server with significantly less vendor resources required to manage it. And it is those savings that are passed to customers.

Figure 3: A multitenant model requires less resources and easier (and rolling) upgrades (i.e. no version numbers). 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 it has become a key differentiator for us in the years since. Locus can 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 multitenant model. Don’t do it.

I would also add that single-tenant (hybrid) cloud applications are worse than on-premises installments 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 multitenancy as these solutions address only hardware challenges.

The Economist magazine described it as: “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 data centre 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 discern a true cloud product from a fake one. But how can you spot a fake?

Just ask the EHS software vendor these four questions:

Do you support both single-tenant and multi-tenant deployments of your software?
Does your software have version numbers?
Do you charge for upgrades?
Can we install your software on our infrastructure?

If the answer to any of these questions is yes, the vendor is not committed to multitenant architecture, and you should not move to their “cloud.”

Multitenancy 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 multitenancy, all customers access the same software on one or a set of linked servers.

Multitenancy requires a new architectural approach. Companies have to develop applications from the ground up for multitenancy. Once companies commit their limited financial resources to one architecture, it becomes nearly impossible for them to switch to the multitenancy 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 multitenancy.

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 “multitenant” 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 a well-established and market-tested true multitenant provider? Even Google and Microsoft are playing a catch-up game with Amazon’s AWS when it comes to cloud hosting businesses. The first mover advantage when it comes to multitenancy is a huge advantage for any vendor.

In summary, an EHS software vendor can be either truly multitenant 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 multitenant.

Figure 5: Where do you want your software to reside? In multitenant or single-tenant infrastructure? If multitenancy is attempted on old infrastructure or legacy application upgrade, watch out. After a 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 standing, 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 multitenant SaaS delivery model and has invested in a true multitenant platform. This is the only way to reap all the benefits that a SaaS model has to offer.

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Thinking of buying configurable EHS software? Make sure to focus on the right questions

As most people researching EHS software know, the words “configurable”, “multi-tenant”, and “platform” are being discussed everywhere. There are plenty of other great discussions on Platform as a Service (PaaS) and multi-tenancy. Let’s look at some tips for getting the most out of configurable software.

Ask yourself “What sets us apart?”

A key question to ask (as soon as you start thinking about configurable software) is “what sets my company apart?” What special challenges or circumstances make your EHS needs more nuanced or complex?

Are you in an industry or segment of the industry that may have unique tracking and reporting needs? Maybe you are an organic milk producer or only manufacture snacks from sustainable sources following global fair-trade policies. These more specialized practices may require additional or unique reporting to maintain accreditation.
Do you handle non-standard materials in highly regulated environments (such as radioactive materials, for example) that impose additional handling, tracking, disposal, and reporting requirements?
Are you a global enterprise with highly variable reporting needs in multiple jurisdictions? Or are you operating in a location with demanding local regulations?
Are you operating in an uncertain regulatory environment?

These are just a few of the things that could set EHS customers apart. The more unique or specialized tracking and reporting needs you have, the more you will value the ability to have software easily configured for requirements that are typically not supported in “off-the-shelf” solutions.

Most modern software handles the “basics” very well, but when you have unique or emerging needs—including future needs that you don’t even know about yet—having a configurable option really pays off.

When needs change, configurable software can be updated easily and quickly by the vendor or even your own in-house staff, saving time and avoiding the agony of “waiting for the next release”. And, best of all, those changes can be done by trained configuration staff, without the need for software developers and the cost and time usually associated with software development.

Follow best practices and engage with industry peers

Learning and internalizing industry best practices, a hallmark of the EHS professional association NAEM and its outreach events, can help any software buyer make better choices and evaluate software features, platforms, and key differentiators. Check out the excellent library of resources, including publications, newsletters, and webinars from industry peers. By taking advantage of shared industry knowledge, you can dramatically streamline and expedite your search for the right solutions.

One word of caution: many industry publications can be influenced by sponsors. This is not only true in the EHS domain, but in all industry expert reviews. That’s why actually talking and comparing notes with industry colleagues is an invaluable resource to get beyond the reviews and hear about real-life experiences with the EHS domain itself and the software options that others have actually used.

If you’re looking for advice on how configurable software may be used to address your EHS needs, talking to actual software users will help. Locus, along with many other vendors and hundreds of EHS professionals, routinely attends NAEM’s EHS and Sustainability Software and Data Management Conference in order to meet with potential customers and dive into any questions you may have.

Know the boundaries of configurability

“Configurable” means something different to each software vendor. Some will say “everything is configurable”—for a price. Others will tell you that you can change report names and add a few fields to outputs, and they call this being “configurable”.

Ask the vendor to explain in detail exactly what can easily be configured—and what is “off limits” and requires actual development effort (i.e., additional cost). You might ask:

Are application workflows easy to change, along with associated notifications and audit tracking?
Can I change my forms to add five new sections with new lookup values? Will the update be automatically reflected on my mobile forms?
Can I create an entire new application for tracking volume of green recycling vs. plastics (or anything else you need to track)? Will the new application show up on the mobile app, or is that a separate configuration?
Can the user interface look different based on the user’s role in the application? For example, could I streamline the interface for my technicians so they only see what is relevant for them?
Can I change the filter selections on my dashboard reports? How about the charts? Can I add new charts?

By knowing the software’s limitations, you can make better choices on the best fit for your current (and future!) needs. Your software vendor may also identify new configurable features that you hadn’t considered before, but that would greatly improve the usability of the software. Even if you don’t need these options now, knowing you have access to them in the future is critical when selecting software.

Beware the illusion of “the perfect fit”

As we’ve established, “configurable” software can mean anything—from a total blank slate and empty platform, to changing a title of a single data entry field, and everything in between. A “blank slate” may excite more technical people who love to tinker in software programs. For others, the thought of building their software from the ground up might elicit general fear and discomfort.

Most customers want something off-the-shelf that perfectly meets their needs. Honestly, who can disagree? That is the gold standard and what everyone wants. In reality, this solution is hard to find—especially for customers with unique need—and often the software tools that address those unique needs are so focused on a particular niche that they neglect some of the other, more basic EHS needs you might have.

The good news is that configurable software provides almost unlimited options for customers, and it can make a huge difference in how the software fits into your EHS workflow. With some solutions on the market today, you could choose to build one application from a blank slate and make minor tweaks to another pre-built application in the same software.

One of the common pitfalls that EHS professionals frequently encounter in selecting a software solution for a specialized need is the tendency to narrow their options down to limited set tailored to their specific industry. For example, if your organization has requirements for refrigerant handling, you might feel constrained to selecting a solution with specific “out-of-the-box” capabilities for that need. Considering the configurability of the software may allow you to consider new and more robust options, and some simple configurations to an existing chemical inventory application could address your refrigerant reporting needs even more accurately, within a single EHS platform.

Change is inevitable—make sure your software can handle it

Many customers will buy existing applications that meet their general needs, but eventually realize they need another form, a mobile solution, or changes for new regulations. Anyone in the EHS industry knows this is the norm rather than the exception.

According to Forbes, federal departments, agencies, and commissions issued 3,853 rules in 2016, while Congress passed and the president signed 214 bills into law—a ratio of 18 rules for every law. That’s just at the federal level. It’s not hard to imagine the amount of change when you factor in state and local rules and requirements.

Over the anticipated implementation life for your EHS software, you can be reasonably assured that the EHS requirements for your organization are going to be changed in some way. Some of these changes you can anticipate, but not all. Given such routine change, you can safely assume that the more configuration options you have, the more prepared you’ll be for those changes. You’ll be in a better position if you know you can configure your software quickly, rather than waiting for a scheduled vendor update that may be out of your control.

Develop a vision of success—for today and tomorrow

Configurable software can be an effective, sustainable long-term management and reporting solution that integrates smoothly into your existing EHS workflows, but it does require you to do your homework.

You can set yourself up for success with some initial reflection and examination of your organization’s unique needs, a few conversations with industry peers, a healthy skepticism of seemingly perfect “out-of-the-box” solutions, and a willingness to ask tough questions of potential software vendors. Think ahead to the future challenges and regulatory changes that might impact your organization, and make sure your potential software vendor has provided evidence that you’ll be able to handle these changes through configuration. Take the time to truly imagine your perfect application and EHS workflow, and ask the vendor to show how it can be possible through configurability. And finally, don’t be afraid to think outside the box!

About guest blogger— Marian Carr, Locus Technologies

Ms. Carr is responsible for managing overall customer solution deployments and customer relationships with Locus’ government accounts. Her career at Locus includes heading the product development team of the award-winning cloud-based environmental ePortal solution as well as maintaining and growing key customer accounts with Locus’ Fortune 100 enterprise deployments. In addition, Ms. Carr was instrumental in driving the growth and adoption of the Locus EIM platform with key federal and water organizations.