![VIDEO: Multi-tenant systems](https://www.openbom.com/wp-content/uploads/2022/10/Screen-Shot-2020-06-07-at-12.18.20-PM-scaled-1.jpg)
In my video today, I want to talk about Multi-tenant Architecture, why is it important and it makes OpenBOM different from old PLM architectures.
In the old days of PLM, the system architecture was designed heavily based on the database as a foundation of the architecture. A single database was created for each company and software using this single database to manage all data for an entire company.
![](https://www.openbom.com/wp-content/uploads/2022/10/openbom-multi-tenant-architecture.jpg)
Things worked well on-premise. If you apply the same architecture with modern cloud systems and SaaS (Software as a Service), you will quickly realize that you need to host a “database for each customer” and if you have ten thousand customers you need to host ten thousand databases to serve them. This architecture is sub-optimal, has a high level of cost, and also doesn’t help at all when you need to share data.
Conclusion
At OpenBOM, we use multi-tenant as a foundation of OpenBOM architecture. The entire openbom.com software stack can be used for many companies (this is how you have it for users, teams, and company subscriptions) and it can be used also separately for large enterprise companies.
Check the story about how OpenBOM helped thousands of manufacturing companies to escape from Excel hell.
Best, Oleg @ openbom dot com.
Want to learn more about PLM? Check out my Beyond PLM blog and PLM Book website
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