What is a single-tenancy environment in cloud computing?
A single-tenancy environment, also known as dedicated hosting or a dedicated instance, refers to a situation where each user or tenant has their own dedicated infrastructure and resources, including servers, storage and network components. These resources aren’t shared with any other users, maximizing performance and control.
Related Definitions
Price Uplifts
What are price uplifts?
In the context of SaaS, price uplifts refer to an increase in the price of a software subscription. While many software providers will implement price uplifts on an annual basis, typically at the point of renewal, others may review and amend their pricing more frequently, for example on a quarterly basis. It is recommended that buyers negotiate a price uplift cap during the initial contract negotiation stage, placing a limit on the maximum amount the subscription can be increased by within a specified time period.
Break Clause
What is a break clause?
A break clause refers to a provision within a SaaS agreement that allows either the customer or the SaaS provider to terminate the contract before the end of the initial term. A break clause will typically set out the conditions or requirements that must be met for either party to exercise their right to terminate an agreement early. For example, a break clause can enable users to cancel their subscription if they are dissatisfied with the service.
Multi-Tenancy Environment
What is a multi-tenancy environment?
In cloud computing, a multi-tenancy environment refers to a situation where multiple users, also referred to as tenants, share the same physical infrastructure and resources. These resources, such as computing power, memory and storage are dynamically allocated based on the needs of each tenant. Each tenant’s data is, however, stored in separate databases to ensure both privacy and security.
Enterprise License Agreement (ELA)
What is an ELA?
An Enterprise License Agreement (ELA) is a contract between a software vendor and an enterprise customer that sets out the terms and conditions for the licensing of software products across an enterprise. Unlike a Master License Agreement (MLA) which is a more comprehensive business agreement that can cover a range of products and services, an ELA is often used for specific software products.
While the specific terms and conditions of an ELA can vary, it will typically outline the number and type of licenses covered under the agreement, restrictions or limitation on usage, the duration of the agreement, the fees associated with the license, renewal terms and termination clauses.
Outsourced Procurement
What is meant by outsourced SaaS procurement?
Outsourced procurement in SaaS refers to the process of hiring a third-party vendor to manage some or all aspects of a company’s procurement process. This can involve negotiating with vendors on your behalf to secure the best possible price and terms on any SaaS contract, while also refining, implementing and enforcing procurement processes that ultimately protect your business.
Auto-Renewal
What is an auto-renewal clause?
Auto-renewal is a term often used in SaaS agreements referring to the automatic renewal of a user’s subscription plan at the end of their contract term. These auto-renewal clauses will automatically extend the user’s subscription for another period, typically the same duration as the initial term, unless the customer explicitly cancels or modifies their subscription by a specified date. This is often referred to as a termination window and is typically either 30, 60 or 90 days prior to the renewal date.