Sonatype CLM works on a principal of hierarchy. Specifically, an organization falls at the top of that hierarchy with applications attached below.
For many teams, the structure of organizations and applications will follow their own "command and control". In this instance, various business units are responsible for specific applications. As such, each business unit will have its own organization.
For others, the applications their teams work on create more logical categories, such as "Internal". This allows a business to mimic commercial units where each business unit is a separate organization with applications below it.
Whatever the case, Sonatype CLM is flexible enough to support a wide range of needs. The important piece to remember is that organizations act as containers for applications. Whether you have all your applications under a single organization or spread across multiple, at the top of the hierarchy is an organization.
Now, the importance of establishing this hierarchy may not be clear at first. However, in the next section, we will explain inheritance and how your business rules around component usage (aka policy) flow from your organizations down to your applications.
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