The verdict in three sentences
For a vendor running one instance per customer, moving to a multi-tenant SaaS architecture costs 10,670 to 22,870 EUR and up (about 12,300 to 26,300 USD) with Kolonell, depending on the number of modules and the existing technical debt. The return comes mostly from operations: one codebase, one deployment pipeline and shared hosting at 300 to 1,500 EUR a month cut operating cost per customer by 40 to 70 %. The real structural decision is the data isolation model, to be settled before the first line of code.
Why one install per customer is expensive in 2026
A Singapore vendor with 15 to 30 staff serving 40 customers on 40 servers or 40 dedicated databases pays for every update forty times. Security patches ship customer by customer, versions drift apart, and support spends part of its time working out which version runs where. Multi-tenant SaaS puts every customer on a shared platform, with each customer (the tenant) strictly isolated from the others.
| Operating item (2026 order of magnitude) | One install per customer | Multi-tenant SaaS |
|---|---|---|
| Hosting for 40 customers | 2,400 to 4,800 EUR a month | 300 to 1,500 EUR a month |
| Shipping a new release | 2 to 5 days | 1 to 2 hours, automated |
| Versions in production | 4 to 10 | 1 |
| Support time spent on versions | 20 to 30 % | under 5 % |
| Onboarding a new customer | 2 to 5 days | 1 hour to 1 day |
| Operating cost per customer | index 100 | 30 to 60 |
These are estimates for a mid-sized B2B business application. They show that savings do not come from cheaper servers but from removing tasks repeated for every customer.
The isolation choice: schema, database or row
Three models dominate. Row-level isolation (a tenant_id column in every table) is the cheapest to run but requires strict discipline in the code. Schema-per-tenant (one PostgreSQL schema per customer) is a good compromise for 20 to 500 customers. A dedicated database suits demanding customers in banking or healthcare who require physical separation, which is common under Singapore's MAS technology risk guidelines.
| Criterion | Row level (tenant_id) | Schema per tenant | Dedicated database |
|---|---|---|---|
| Hosting cost | lowest | moderate | high |
| Isolation and security | logical, must be tested | strong | maximum |
| Schema migrations | run once | one per schema, scripted | one per database, scripted |
| Usage-based billing | easy to meter | easy to meter | must be aggregated |
| Restoring a single customer | complex | simple | very simple |
| Suitable customer count | 100 to 10,000+ | 20 to 500 | 5 to 50 key accounts |
| Extra development cost | baseline | +10 to 15 % | +15 to 25 % |
Many vendors go hybrid: schema per tenant by default, with a dedicated database sold as an "enhanced isolation" option to key accounts, priced monthly to cover the extra cost.
What a Kolonell multi-tenant rebuild includes
Kolonell's range follows its complex application grid: 7,000,000 to 15,000,000 FCFA and up, i.e. 10,670 to 22,870 EUR and up. It covers the audit of the existing codebase, the tenant resolution layer (subdomain or header), per-customer authentication and roles, subscription billing, the continuous deployment pipeline, migration of existing customers' data and monitoring.
| Work package | Share of budget | Indicative timeline |
|---|---|---|
| Audit and architecture choice | 8 to 10 % | 2 to 3 weeks |
| Tenant layer, auth and roles | 20 to 25 % | 4 to 6 weeks |
| Rebuild of business modules | 30 to 40 % | 8 to 12 weeks |
| Billing and customer portal | 10 to 15 % | 3 to 4 weeks |
| Migration of existing customers | 10 to 15 % | 3 to 5 weeks |
| Security, load testing, monitoring | 8 to 10 % | 2 to 3 weeks |
Total timeline is 4 to 7 months, with a gradual cutover: a first batch of 3 to 5 pilot customers, then the rest in waves. Post-launch maintenance follows Kolonell's plans at 35,000, 75,000 or 120,000 FCFA a month (50, 110 or 180 EUR), excluding new features.
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Mini case study
Wei Ling, CTO of a construction project management software vendor in Singapore, serves 40 customers on dedicated installs. Hosting costs 3,600 EUR a month and her team spends about 25 days a month on releases and version support, valued at 500 EUR a day, i.e. 12,500 EUR. Monthly operating cost: 16,100 EUR. After an 18,000 EUR multi-tenant rebuild, hosting drops to 900 EUR and operating time to 8 days (4,000 EUR). New total: 4,900 EUR a month, a monthly saving of 11,200 EUR, or 70 %. The rebuild pays for itself in under two months of operations, before counting the commercial gain from faster onboarding.
FAQ
How much does moving from installed software to multi-tenant SaaS cost?
At Kolonell, a multi-tenant rebuild falls under the complex application grid: 10,670 to 22,870 EUR and up. The amount depends mainly on the number of modules and the quality of the existing code, assessed in a 2 to 3 week audit.
Do we have to rewrite everything?
Rarely. In 60 to 70 % of cases the business logic is kept and it is the data access layer, authentication and deployment that get rebuilt. A full rewrite only makes sense when the original technology is no longer maintained.
Which isolation model for 50 SME customers?
Schema per tenant is the usual compromise between 20 and 500 customers: strong security, simple single-customer restore, 10 to 15 % extra development cost. Key accounts can get a dedicated database as a paid option.
How long does migrating existing customers take?
Allow 3 to 5 weeks for 30 to 60 customers, in waves of 5 to 10. Each wave includes a rehearsal on a data copy, then an overnight or weekend cutover with a rollback plan.
Is multi-tenant compatible with data protection rules?
Yes, provided you document isolation, encrypt data at rest and pick a compliant hosting region (Singapore for PDPA, the EU for GDPR customers). Keep a per-tenant record of processing and access logs for 6 to 12 months.
Let's scope your project. Send us your customer count, modules and current stack: we will price the target architecture, an indicative budget and a 4 to 7 month cutover plan through our free quote form. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.