Typically, it is common that an organization which offers an in-house application continues to operate through a separate and dedicated server with storage space. This includes separate applications and separate infrastructure.

The transition to cloud computing has been advantageous for these organizations that have introduced multi-tenant architecture. With this new configuration, the SaaS vendor operates using the same server and storage space to provide multiple user accounts, also known as, the same application with a shared infrastructure.

The best feature of a multi-tenant environment is that each user account is unaware of other user’s existence, even when they're working on the same infrastructure, they are still acting independently.

A relevant comparison for understanding multi-tenant architecture is an apartment building. With a basic setup, you have the main building with hallways, and amenities which is the ‘cloud environment’ in the multi-tenant architecture. However, you can customize the allocated space to your name, which is the ‘user accounts’ in the multi-tenant architecture.

Now, what is Multi-Tenant Architecture?

A single instance of the software (the workable application) is set up and operates on the cloud vendor’s infrastructure like AWS, Azure, GCP, and serves the needs of several customers simultaneously.

Integrated into the multi-tenant architecture, customers are unaware of additional data that is stored exclusively. Which, however, makes the tenants invisible to one another.

What is Single-Tenant Architecture?

A single-tenancy architecture, that a single instance software functions through on a dedicated cloud server while only serving one customer at a time. The setup is possible among organizations that have resource-intensive workloads.

An easy comparable for understanding single-tenant architecture can be a villa that you create for your family. You will configure an exclusive building – which represents the dedicated server space that you own. With a single tenant you do not have to share anything with anyone, and every computing resource will only be accessible to you.

The biggest difference between single-tenancy and multi-tenancy is with multi, there is a “Noisy Neighbour” effect. This is when several tenants will make requests on the same database server, and performance issues will occur, and it will result in noisy neighbours.

To manage the allocation, and deallocation of resources to avoid starting the noisy neighbour effect is through a priority setting.

There are 2 types of Multi-Tenancy through Cloud Computing

1. One App Instance, with One Database

With this configuration, the software is supported by one database, and all the user accounts are accessed within the software product.

This style offers scalability, and increased correspondence to resources and capacity as tenants increase. The biggest downside to this style is the noisy neighbour effect.

2. One App Instance with Several Databases

With this configuration, the software is supported by several databases, and each tenant has a designated database that is independently maintained.

This version of multi tenancy can get expensive because you are asking for a separate space to store the application’s data. Scalability is not as easy with this version, but there is no noisy neighbour effect.

Okay, but how does Multi-tenancy work?

Alongside a multi-tenant architecture, a single instance of the software is contributed to the public cloud and is accessible to several tenants. However, when a new tenant starts, the software has the ability to be customized to suit their individual needs.

Here are the top benefits to Multi-Tenant Architecture:

1. Economies of Scale

This allows for renting common resources for your application on the cloud infrastructure. It includes the cost that you pay to host a multi-tenant software application that is fixed and could vary overtime.

When cloud resources that are fixed and vary with scalability are purchased the value and profits bring in improved economies of scale.

2. Easy maintenance, updates and upgrades

In the case of SaaS Multi-tenant architecture, users are not required to pay many fees to keep the software up to date. Maintenance costs are typically associated with a SaaS subscription and are not charged per case, unlike the Single tenant structure.

The maintenance costs, especially for updates, are shared between every tenant since they all use the same code from the same pool, which reduces the overall costs for each tenant.

3. Convenient onboarding of New Tenants

Multiple customer onboarding has sparked fame and become a primary focus for vendors since poor user experience can directly affect the growth prospects.  

4. The Virtue of Scalability

The more hardware that is added to a Multi-Tenant SaaS model, the more horsepower for the entire system there will be. Which will then provide excellent scalability to every tenant.

Our hope is that this gave you a better understanding for Multi-Tenant Architecture, and gave you better insight on what to use as a foundation for your business or software. Reach out to one of our experts at ISU Corp if you have any questions!