First, what you describe is the appearance of low cost (next to a horrible alternative), as opposed to actual low cost.

Second, the reason for this "cheapness" is not multi-tenancy but the complicated rules and structures.

The larger point is that Rodney Rogers' article asks for too much.

In fact, I believe most companies would go bust trying to fulfill his requirements. If I were to win his business I would turn it down.

I believe the best he can hope for realistically is that SAP add some more hypervisor support to their software.