What is Multitenancy?

Multi-tenancy refers to a software architecture where a single instance of the software application serves multiple customers.

Tenants are the users being served, and tenants share the same resources with the cloud in this architecture. Together, each tenant is incorporated physically but separated logically, including networking, storage, and computing. In other words, there's only one Salesforce with millions of users using the same application customized to their individual needs.

What are the Several Types of Tenancy in Cloud Computing

Now that you have got a fair understanding of tenants as distinct users who has the freedom to create specific custom modifications with the software application. These modifications can be user interface modifications or business practices. However, users are not allowed to customize or alter the application code.

On the other hand, the existence of single-tenant or the practice of single tenancy architecture is also prevalent. A single tenant is a structure in which only one user can avail of the software application and infrastructure.

How is Multi-tenant Architecture Different from Single-Tenant Architecture?

A single-tenant architecture runs on a reliable cloud service provider and serves a single customer with a single-tenant architecture. On the other hand, a multi-tenant architecture serves multiple customers simultaneously.

A perfect example of settling for this is a single-tenant architecture as a mansion you built for your family. You must have made an entire space of your own for this setup. Here the house (dedicated server space) is for your own, Unlike a public setup.

You do not have to share anything with anyone, and all the computing resources are only available and accessible to you.

Degrees in Multi-Tenancy

Multi-tenancy degrees depend on the core application design that gets divided among the tenants. Infrastructure-as-a-service (IaaS) and Platform-as-a-service (PaaS) layers are allotted the most subordinate degree of multi-tenancy. Alongside the highest level of multi-tenancy degree, IaaS, PaaS, and SaaS are entirely multi-tenant.

Single-Tenant vs. Multi-Tenant

The tenant itself is the most critical aspect differentiating between multi-tenancy in the cloud and single-tenancy. At the same time, every tenant has an autonomous instance of software and database in a single tenancy. At the same time, in multi-tenancy, the tenants aren't restricted by one software application and can easily share their database and application.

Simplifying Multi-Tenancy Architecture

The Multi-tenancy architecture is established on central management and applies a standard code application. It simultaneously uses a single, typical application instance (s) for numerous tenants.

The multi-tenancy architecture is developed to segment the data and the code configuration to secure the usage of every tenant. Therefore every tenant utilizes a customized virtual application model in a multi-tenant architecture.

To further help you visualize this architecture, suppose a residential area consisting of multiple separate buildings and apartments. Each apartment has its centralized water supply, electricity, and security. Thus all of them are situated in a single complex with their primary requirements.

Similarly, in multi-tenancy, the intricacies can be different, and the operation and mode of execution are virtually the same on a surface level.

Benefits of Multitenant Architecture

The benefits of multi-tenant architecture include:

Minimized Costs

With Multi-tenant architecture software, companies get reduced overhead investments with an established SaaS business model. This cost reduction is because of the multi-tenant architecture's ability to share a single instance of the software.

In hindsight, scaling has never been a significant hindrance to multi-tenant architecture as new tenants can access the same software instance without impacting their counterpart's performance.

Shared Data Centers

The SaaS vendor doesn't have to be concerned about constructing distinct data centers for every tenant with shared data centers. Usually, a shared data center is used for the entire customer base, commonly known as the "One app instance, one database" type of multi-tenant architecture.

Better Efficiency

The pay-as-you-go working model used by most cloud hosting providers helps the SaaS providers elevate their efficiency. Thus, when the operations scale up, they can quickly solicit additional resources to efficiently manage the growing community of users.

Disadvantages of Multi-Tenancy

Despite several reasons companies are drawn towards Multi-tenancy, it also comes with a fair share of drawbacks. Few of them are-

Compared to single-tenant applications, multi-tenant ones are more flexible with configuring low-level customizations.

A multi-tenant application is more complex and challenging to detect data leakages than an equivalent single-tenant application.

Several companies cannot store data in a multi-tenancy architecture-based infrastructure given the different regulatory requirements in the other regions.

During over-utilization of the computing power can severely impact the performance of other tenants in multi-tenancy.

What are the Most Prevalent Companies Using Multi-Tenant Architecture?

Software-as-a-service is most prone to being a multi-tenant example. They include geographic information systems (GIS), management information systems (MIS), enterprise resource planning (ERP), and content management (CM), among a few.

Additionally, some most prevalent multi-tenant architecture companies are software applications such as Zendesk, Salesforce, and Hubspot.