Business owners are well placed to develop in-house software that addresses the specific needs and requirements of their business, team and clients. The research and development costs for creating software in-house with a technology partner could be much lower, with the advantages of it being a tried and tested space.

Bespoke software enables business leaders to see their vision come to life, with a clear view of what solutions will work and those that won’t in their specific sector. This avoids a one-size-fits-all approach and the pitfalls of fitting generic software to a business. For instance, businesses often pay for a software solution with dozens of features they do not need. Or they make do with features which are not perfect for their particular industry. This means money is spent on tools that are not used or do not perform in a way that the organisation really needs. It is always better to build the software around the company, as opposed to building the business around the software.

Many businesses miss out on the advantages of bespoke software due to fear of price. However, a multi-tenant software model is a way of expanding the business’s benefits and returns from the software development project. These can be realised in many ways.

The software can be licensed to other organisations, known as tenants, to create a revenue stream. This can be done openly with the host organisation’s name, or it can be done as a white-label solution where the software is rebranded with the tenant’s name. While initial costs for bespoke software may appear high, licensing out the software means it will pay for itself over time. Often you can enable this model by going back to the developer, who will be able to advise how this can be done and facilitate the tenants.

Multi-tenant software is built to be scalable. The more tenants there are, the more revenue that can be generated. This can either be when more organisations become tenants or when existing tenants’ headcounts increase so they require more profiles or digital space. The ability to scale will lead to a faster break even on the initial project outlay and it will naturally drive economies of scale. Each tenant will have their own servers, with data kept private from the other parties using the software.

Another benefit of multi-tenant solutions is reputational enhancement for the host. By developing a software solution that addresses the nuances and needs of a specific sector, the business can be seen as a market leader and more innovative in its sector. For example, Drew Houston saw the issues businesses faced when it came to sharing data and the need for it to be secure and accessible. In 2007, he went about creating Dropbox, which is used by companies across the world today to keep files in sync.

⁠Developing bespoke software raises the value of a business as it is an investment in IP. The business is worth more if it owns its own software, and even better if the software is successful. According to the Intellectual Property Office (UKIPO), 70% of a typical company’s worth lies in intangible assets. Despite this, very few businesses know the worth of their IP, nor know how to go about boosting it. By investing in software and tenanting it out, you are not just securing a venue stream in the short term, it is an investment in which you will reap the rewards of going into the future, particularly if it comes to selling the company.

People don’t realise tenanting software out is an option. For those who do not have the budget to pay for bespoke software, paying for a license to multi-tenant software is a no-brainer, particularly if the software has been custom-made for another organisation in your industry. Meanwhile, the owners of the software can reap the rewards from the demands of other businesses and can use the multi-tenant framework to take advantage of the gap and demand in the digital landscape.

Embracing multi-tenant software models is not just a strategic choice but a transformative one for small businesses looking to scale. With the right licensing approach, these models quickly justify their investment, often paying for themselves within just a few years.

Atula Technologies has enabled its clients to lease their software to other organisations, effectively turning technology into a steady revenue stream. This approach not only maximises the value of existing digital assets but also creates a sustainable, scalable income source that can propel long-term growth.