Multi-Tenant PLM Data Model Value Unpacking

In the last two articles, I discussed multiple aspects of SaaS PLM and cloud architectures. If you haven’t had the chance, I encourage you to check them out before continue reading.

5 Shades of PLM SaaS Architecture

How to Select PLM in 2024 Without Being Confused by Marketing

One topic that repeatedly surfaced in those discussions is the multi-tenant SaaS PLM and product data management architecture, particularly the multi-tenant data model. Here is the passage from my article about multi-tenant product lifecycle management.

At the pinnacle of SaaS PLM architecture is the Multi-Tenant SaaS PLM with a Multi-Tenant Data Model. This system not only allows for multiple accounts within the same platform but also facilitates the sharing of data between these accounts. This level of integration is especially beneficial for companies that need to collaborate closely with suppliers, partners, or even different departments within their own organization. The ability to share data seamlessly between tenants can lead to significant efficiencies, better decision-making, and a more cohesive digital thread throughout the product lifecycle.

However, I’ve noticed there is still a lot of confusion surrounding this topic. In today’s article, I want to unpack the value of multi-tenant architecture with a multi-tenant data model, exploring its benefits, addressing common concerns, and clarifying why it’s a an important differentiator in the world of the future PLM systems and technologies.

What is Multi-Tenant PLM with Multi-Tenant Data Model?

The ability of PLM software to adapt to changing business needs and product development process, to scale efficiently, and maintain security and compliance are more critical than ever. One of the most promising approaches to meet these demands is the multi-tenant PLM data model. This architecture allows multiple organizations not only to share the infrastructure, but actually allows to organize the database and include data isolation layer to PLM databases on a logical system level (not on the database logical level) while keeping their data securely isolated. In the picture blow, I outline the evolution and options of SaaS PLM multi-tenant architecture.

The first picture is multi-tenant app server. This app server can be shared and scaled horizontally. However, the databases used for each of the customer are separate. It gives a full isolated and scale of database functions.

The next option is where multi-tenant application is combined shared database servers, but isolated databases (logical).

In this scenario, the database service is shared between multiple tenants, but each database is logically isolated. Such architecture might even have some logical data model allowing DevOps and even shared user management and account management. But the data is logically separated.

The last option is the multi-tenant data model where the data belonging to each tenant is isolated on the logic level functions and applications can share data between multiple tenants. The data might be logically defined and later shared with specific customer tenants.

As you can see in the picture above, the data is logically connected and can be managed in the way that allows to multiple tenants to work in a simultaneously connected environment sharing data logically based on the specific tenant data access rules. It gives you the capability to manage and share data in a granular way similar you can do it with Google Docs and many other multi-tenant SaaS applications.

General Principles of Multi-Tenant Architecture

Multi-tenant architecture is powerful. However, the typical perception of users that the main purpose of multi-tenancy is to improve the user economics and share resources. Although, it is true and multi-tenancy can be your way to create a setup with zero singe user cost, it is more that just sharing resources. It is related to cross functional teams, analytics, user experience, and AI these days. let me unpack more about multi-tenant functions.

Scalability and Cost Efficiency

A multi-tenant architecture is inherently designed to scale. As your business grows, adding new users, teams, or even entire business units becomes a seamless process. Since all tenants share the same infrastructure, the costs associated with hardware, software updates, and maintenance are spread across multiple users, making the solution more affordable than single-tenant models. This efficiency is particularly valuable for small to medium-sized enterprises (SMEs) looking to implement PLM without the overhead of a traditional, monolithic system. But it can be also a significant factor in large OEMs working with hundreds and thousands of contractors and suppliers.

Rapid Deployment and Continuous Updates

Multi-tenant PLM solutions allow for rapid deployment, often with minimal IT involvement. Since the architecture is built around shared resources, software updates, patches, and new features are rolled out across all tenants simultaneously. This ensures that all users are always on the latest version, benefiting from the latest advancements in PLM technology without the downtime or manual intervention typically associated with updates in single-tenant systems.

Data Isolation and Security

One of the primary concerns with multi-tenant systems is data security. However, modern multi-tenant PLM architectures are designed with robust logical data isolation mechanisms, ensuring that each tenant’s data is logically protected from others. Advanced encryption methods, role-based access controls, and audit trails further enhance security, making multi-tenant PLM solutions safe and compliant with industry standards and regulations.

Customization and Flexibility

Another aspect that typically triggers concerns is the ability of the system to customize the environment for each customer. Unlike old legacy PLM hosted in the cloud, modern principles and mechanisms for customization allows to change data model and customize functions on a granular level based on a specific data object and individual customer and user accounts.

Unique Capabilities Enabled by Multi-Tenant Architecture

Let’s move forward and speak about functional and system capabilities of multi-tenant PLM architectures that uniquely belongs only to multi-tenant data architecture. It can unlock a suite of unique functionalities that drive enhanced data sharing, collaboration, analytics, and the integration of artificial intelligence (AI) capabilities.

Advanced Data Sharing

Although “cloud” emphasizes data availability and data sharing, you can only go and share data in the scope of the current single tenant database. Sharing outside with a single tenant architecture is to run the same “enterprise data exchange” projects. Multi-tenant data is different.

• Seamless Information Flow: Enables effortless sharing of product data across different departments, partners, and stakeholders within and across organizations.
• Unified Data Models: Provides consistent and standardized data structures that facilitate easier interpretation and utilization of information.
• Real-time Updates: Ensures all users have access to the most current data, reducing errors and improving decision-making processes.

Enhanced Collaboration

Multi-tenant data model can be a true enabler for people in different companies (eg. OEM, Design centers, contractors and suppliers.

• Cross-Organizational Collaboration: Supports collaborative projects between different organizations by providing controlled access to shared resources.
• Collaborative Workflows: Enables the creation of integrated workflows that streamline processes and improve efficiency.
• Community Building: Fosters a community of users who can share best practices, insights, and innovations, driving collective improvement.

Advanced Analytics

Expanding analytics scope in a run time is a big advantage of multi-tenant data architectures. Here are a few unique characteristics.

• Aggregated Insights: Leverages data from multiple tenants to provide comprehensive insights and benchmarks that individual organizations can utilize for strategic planning.
• Predictive Analytics: Utilizes vast datasets to predict trends, identify potential issues, and optimize product development cycles.
• Custom Reporting: Offers customizable analytics and reporting tools that cater to specific organizational needs and KPIs.

Future Integration of Artificial Intelligence

Companies are actively exploring the opportunity to introduce various AI capabilities in the PLM platforms. While the jury is still out, some advanced technologies applied to entire database can provide an insight on how data can be used in the future to built special queries or use consolidated information for AI algorithms. This is, of course, requires companies approving using their data to a certain degree.

Continuous Learning and Improvement

Multi-tenant systems gives you a data corpus to improve user experience and functional characteristics of the system by analyzing what and how is done by customers.

• Machine Learning Capabilities: The system learns and improves over time by analyzing data patterns and user interactions across tenants.
• Adaptive Systems: Adjusts processes and recommendations dynamically in response to changing data and environmental conditions.
• Innovation Acceleration: Encourages faster adoption and integration of new technologies and methodologies by leveraging shared knowledge and resources.

From Single Tenant to Multi-Tenant Environment

One of the most compelling features of multi-tenant architectures is their inherent flexibility, which allows them to function effectively as single or multiple tenant systems based on organizational needs. This adaptability is reflected in the configurable tenancy levels that multi-tenant systems offer. These systems can be tailored to support a single tenant or a limited number of tenants without compromising on performance or security. As organizations grow or merge with other entities, they can seamlessly transition from a single-tenant setup to a multi-tenant model. The architecture also allows for customized levels of data and resource isolation, ensuring that the specific requirements of each tenant are met.

In addition to their configurability, multi-tenant architectures provide significant consolidation benefits. By consolidating multiple single-tenant systems into a unified multi-tenant architecture, organizations can streamline resource usage and reduce redundancy. This consolidation simplifies administrative tasks by centralizing the management of multiple business units or subsidiaries on a single platform. It also leads to cost savings, as there is no longer a need to maintain separate infrastructures for each tenant, thus reducing operational and maintenance costs.

Multi-tenant systems also offer enhanced control and governance. They enable the implementation of consistent security and compliance policies across all tenants, which is crucial for maintaining confidentiality and integrity. The architecture’s flexible access control allows for granular management of data permissions, ensuring that each tenant’s information is handled appropriately. Additionally, the standardized processes and documentation across the organization simplify the process of meeting regulatory requirements, easing the compliance burden.

However, it’s important to note that the flexibility of multi-tenant systems stands in contrast to the limitations of single-tenant systems. Single-tenant systems often have a rigid structure that lacks the scalability and adaptability needed to support multiple tenants efficiently. This rigidity can lead to higher costs due to the need for separate infrastructures for each tenant, and integrating data and processes across these isolated systems can be complex and error-prone.

Moreover, multi-tenant architectures provide strategic agility that single-tenant systems cannot match. They support business expansion initiatives such as mergers, acquisitions, and global growth by facilitating the easy onboarding of new tenants. The dynamic resource allocation capability of multi-tenant systems ensures that resources are allocated efficiently based on the evolving needs of each tenant, maintaining optimal performance. This flexibility also future-proofs organizations, allowing them to adapt swiftly to technological advancements and market changes with minimal disruption.

What is my conclusion?

The multi-tenant PLM data model presents a transformative approach to managing product lifecycles in today’s dynamic and interconnected business environment. Its myriad advantages—ranging from scalability, cost efficiency, and enhanced collaboration to advanced analytics and AI capabilities—equip organizations with the tools needed to innovate and compete effectively.

While acknowledging and addressing the inherent concerns related to security, performance, and customization, multi-tenant architectures demonstrate remarkable flexibility. They can seamlessly transition between supporting single or multiple tenants, offering a configurable set of capabilities that cater to diverse and evolving business needs. This adaptability not only streamlines operations but also ensures that organizations can scale and adapt without compromising on efficiency or control.

As we look towards the future, I think multi-tenant data management will play a pivotal role in shaping robust, resilient, and responsive PLM solutions. By embracing configurable multi-tenant architectures, organizations can harness the full spectrum of benefits while strategically balancing potential risks. This balanced approach empowers businesses to realize unparalleled efficiencies, foster innovation, and maintain a competitive edge in an ever-changing global marketplace. For PLM vendors, multi-tenant environment provides a unique way to support the networks of customers working together seamlessly.

I think, multi-tenant data management systems provides a unique set of functions and features and their use will be growing over time. One thing to remember, a multi-tenant system can be configured to have a controlled number of tenants and used for internal organizational (or multi-organizational) use cases. The opposite scenario is impossible. A single-tenant database will be forever a single tenant database. It can be used for data exchange, but not simultaneous work of multiple customers and users.

Just my thoughts…

Best, Oleg

Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased.