How SAAS Applications Can Utilize Multi-Tenant Architecture

Multi-tenant architecture is a style in which a particular instance of a software app serves multiple clients. Software as a Service (SaaS) is a modern alternative form of software delivery in which a third party hosts the program in the cloud and makes it available to people over the internet. SaaS is one of the three primary wings of cloud computing. The other two are Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).

SaaS has gained a competitive edge in the application development business primarily because it provides an efficient design while also supporting in the adoption of a cost-effective strategy. However, you can only reap its full benefits if your SaaS products are built using a multi-tenant architecture.

What is a Multi-Tenant Architecture?

A multi-tenant architecture is founded on central administration and comprises a common code application that runs a shared instance(s) of applications to accommodate multiple tenants. It protects each tenant's sensitive data from prying eyes. To illustrate, consider a residential complex comprising numerous units, each with centralized security at the main door, as well as power and water supplies managed by landlords.

Single-Tenant Architecture Vs Multi-Tenant Architecture

In single-tenant architecture, one application and supporting infrastructure provide services to a single client. Every user or client will have their own database and software. With single-tenant architecture, there is no room for sharing.

With the multi-tenant option, one instance of the software, together with the supporting infrastructure provide services to several customers. Clients can share their software application as well as their database. The data is tagged into the database as the software program correctly detects whose data it is.

Database specialists create three types of multi-tenant architecture for diverse tenants. They can be shared, separate, or both, depending on their needs.

Advantages of Multi-Tenant Architecture

Significantly reduces the cost of investment

Customers go for the best deal with the least development cost when it comes to constructing a SaaS application. Multi-tenant architecture, as opposed to single tenant architecture, helps to save long-term investment costs by allowing customers to share databases, resources, and applications.

Because everyone is using the same software and database, the cost of maintenance and development become low. Another feature that contributes to cost savings is that multi-tenant systems do not require new software resources or code changes, nor do they need the creation of a database for each additional tenant. At maximum capacity, the cost of onboarding a new tenant is generally negligible, with just a slight cost rise with each additional customer.

Multiple clients at the same time

The vendor does not have to create a new and exclusive database for each new tenant in a multi-tenant architecture. However, with a single renter, this is required. Tenants can employ a single-tenant shared infrastructure with a multi-tenant design. Data centers also do not require an expansion for every tenant. Scaling decreases vendor implications, but it is determined by the size of the application and the volume of the infrastructure.

Simple to add new clients

New client acquisition has always been a big concern for software companies since any poor onboarding process might lead to poor prospects. To address this, an effective approach for attracting clients must be implemented. In this case, self-registration is critical.

A multi-tenant application benefits vendors by providing an automated enrollment mechanism. The setting of the domain and sub-domains is also automated. Other automated operations include software configuration and setting the default data.

Maximizing resource use

Another area where multi-tenant surpasses single-tenant is the ability to maximize resource use, which is one of the typical qualities in favor of multi-tenant systems. The ability to share infrastructure and resources gives multi-tenants an advantage in terms of optimizing maintenance while automating use. When a consumer is not utilizing a resource, it becomes accessible to another customer or tenant, keeping the machine always in motion.

It is more convenient to keep the same application.

The design of multi-tenant application architecture is in such a way that it makes it significantly easier for suppliers to maintain the application. The modules are straightforward to set up and make it easier to use the application. Because the shared codes are the same, there is no need to modify the codes or the data structure.

Maintenance costs are also minimized because tenants often share them when an improvement is necessary. This is due to the fact that all tenants use the same code.


Multi-tenant architecture is critical and efficient in the development of SaaS services. It provides several advantages, such as lower development, maintenance, and investment costs. It outperforms single-tenant design in several ways. However, it is not a simple project to work on because there are a few obstacles you must overcome to maximize its benefits.

These may include concerns about data confidentiality and security. However, one can create database architecture and address these difficulties.

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