Advice and Information for Finance Professionals

Are “Noisy Neighbors” Affecting Your SaaS Application?

Yaldah Hakim Rashid
Director, Cloud Applications Product Marketing
This is a syndicated post, view the original post here

Now that we are sequestered at home, some of us may be experiencing the challenges of noisy neighbors. Neighbors partying into the wee hours of the morning. Dogs barking when you’re trying to work. These noisy neighbors can affect your well-being at home. Similarly, noisy neighbors can also affect your SaaS application.

Now more than ever with people working from home, cloud applications and databases need to be able to handle the sheer of volume of data and transaction volume. More people are entering more online transactions via ecommerce, scheduling at home deliveries, doing remote financial closes; all done via cloud applications. Without a secure data isolation design, you could be at risk of being affected by a "noisy neighbor" syndrome. This can happen with first generation SaaS multi-tenant environments and can limit application scalability and performance. 

What is a SaaS “Noisy Neighbor”?
If your business application shares a cloud database with a “noisy neighbor” company, you may experience significantly slower processing speeds resulting in slower reporting performance. Slower reporting performance can result in a longer month-end close that could takes days, rather than minutes.

Example of a “noisy neighbor” and it can affect daily work
Here is an example of cloud noisy neighbor in finance that uses a first-generation SaaS shared multi–tenant model.  

The telecommunications provider below has millions of mobile phones that are tracked and depreciated. To calculate the depreciation of millions of mobile phone assets, it generates millions of journal entries. Its asset book is so big, it has to manage it or process it in chunks or batches: 10 batches x 2 hours = 20 hours total processing (compute time).

Sharing a database in the cloud with this finance application creates a “noisy neighbor”. Imagine the impact on your processing time if you are sharing a database with this user. It will negatively affect the processing speeds and reporting performance available to you.

How can scalable high-performing cloud applications help your business now?
As cloud applications scale, they process transactions quickly, regardless of volume or calendar period. Scalable cloud applications maintain optimal performance levels, so periodic increases in data inflows are easily handled without negatively affecting your business or your bottom line.

How can you reduce the risk of “noisy neighbors”?
Ask your cloud provider for cloud applications that carry a unique and differentiated secure data isolation architecture allowing for scalability and increased performance. With secure data isolation, you have dedicated instances that are not co-mingled with other customer’s data. This eliminates the “noisy neighbor” syndrome.

To learn more about the impacts of noisy neighbors and scalability in finance, download this pdf.


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