What does multi-tenancy mean?

Multi-tenancy is a way of building software that lets one copy of an app serve many people or groups of users called tenants. So, different subscribers, team members, or groups can use the same platform however they choose without installing or getting each separately.

Users share the same database, a platform, or a subscription. However, their data is kept separate and safe from other renters’ data. Tenants can change things about the app, like the themes, user interfaces, and business rules. They can’t change the code, though.

Here are some examples of multi-tenant software:

• A.T. Astrid
• Press Up
• It’s called Dropbox.
• G Suite
• Please use Github.
• Web site for HubSpot
• Fire TV
• The salesforce

This is Slack.

When there are multiple tenants in a layout, each instance works in a shared space. Each tenant is directly connected to other tenants but logically separate from them. Each tenant has resources and data but uses the same application infrastructure.

This is an essential part of multi-tenant solutions because it lets many people use the same platform without thinking about their data and processes getting hacked. Millions of other people are doing the same thing at the same time when we use Gmail to send emails, Dropbox to store files, and Netflix to watch shows. Even so, we can’t see what they’re doing. That’s how multi-tenancy works.

Like words

• Software with multiple users
• Multi-tenancy for SaaS
• Architecture with multiple tenants

Why did cloud computing and SaaS need to have multiple tenants?

In standard single-tenant systems, only one customer uses the software at a time. Each tenant needs computer tools and licenses, making managing them more expensive and time-consuming. Multi-tenancy is a massive deal for SaaS and cloud computing because it lets various customers share infrastructure, which makes better use of resources and lowers operational costs.

Costs Less

When more than one person uses the same application setting, the SaaS provider saves and gives that money to the customer. Most of the time, this happens with usage-based pricing methods, where customers pay a base price for the service every month or year and a small fee to add new users.

In a multi-tenant setting, customers of all sizes who use SaaS and cloud services share the same infrastructure and the costs associated with it. Compared to fully managed options and on-premises hosting, multi-tenancy is very cheap.

How to Scale

Businesses can make the application fit their needs with multi-tenant options because they are flexible. Upgrading and growing multi-tenant applications is much easier because all tenants use the same infrastructure.

Multi-tenancy also makes it easy for SaaS companies to grow with their customers by letting them add new people to their shared environment without buying more resources. They can also help business users use the cloud’s almost unlimited computing power.

Scalability in multi-tenant applications makes it easier for customers whose needs change over time, like seasonal businesses, to change the amount of service they provide as needed.

Makes the best use of resources

The multi-tenant environment lets more than one tenant use the same software tools, which makes the most of them. Each renter is given a certain amount of storage space, processing power, and other resources based on their needs. This makes it easier for businesses to handle their work, and they don’t have to spend money on extra hardware or software licenses.

Consistent Experience for Users

More than one customer uses the software and hardware in a multi-tenant system. Everyone who buys something uses the same app and database. No one else can access the information belonging to to the tenant. So, the main parts of the user interface stay the same, but each renter gets their own safe and unique virtual space.

Tenant privacy and permissions based on roles

Each tenant has their place to use the platform, such as looking at dashboards and analyzing data. The app instantly separates this area from others or lets a particular group of authorized users see certain parts of it. Each tenant manages the analytics environment well within the limits of the job and the permissions they have been given.

This is a beneficial trait for business-to-business SaaS users. For example, when a sales CRM is used, the sales manager must see their team members’ data and actions. They wouldn’t want other departments or team members to be able to see the same information. If they could, privacy concerns would arise, and workers might delete important data by mistake.

Cons of having more than one tenant

There are clear advantages to multi-tenant software, but single-tenant design is better when:

• Data safety is paramount.
• Every renter has different customization needs that can’t be met in a shared space.
• We need to have total power over the software and its infrastructure.
• Multi-tenant software has some problems that can’t be ignored, especially regarding business software and database management tools.

Risks to security

Multi-tenant solutions are held on a public cloud, meaning that data is kept elsewhere and can be accessed over the Internet. Even though strict security measures are in place, some companies may still want complete control over where their data is stored.

As an example:

Businesses in the healthcare field have to follow HIPAA rules and might feel unsafe storing private information in an open space.

Government agencies have strict rules and standards for security that might not work with multi-tenant storage.

Internal security is also at risk when execution isn’t done right. A company that uses a multi-tenant cloud solution has many problems when sensitive papers are accessed without permission, and data is misused, whether on purpose or by accident.

To prevent these risks, business leaders need to carefully control what end users can do. Multi-tenant SaaS apps can be safer with Azure Active Directory and Okta, which easily handle authorization, authentication, and identity management.

Issues with Compliance

Multi-tenant solutions aren’t always suitable for businesses with many rules because they pose security risks. Public, healthcare, and financial companies must follow strict privacy laws.

• Financial companies need to follow PCI DSS rules.
• Healthcare groups need to follow the rules set by HIPAA.
• Groups in the public sector need to follow rules like SOX and FISMA.

Multi-tenant software providers may offer better data protection and go through strict compliance audits, but they may not be able to meet all industry-specific rules all the time. However, there are specialized apps that can.

Single-tenant solutions, on-premises or in a private cloud, give you more control over data management and compliance when the provider can’t. This does mean that infrastructure and upkeep costs will go up, though.

Competition for Resources That Are Shared

Single-tenant solutions let one person use the whole cloud’s computing power because they are hosted on a private cloud or on-premises. The situation is different with multi-tenant solutions, which can sometimes lead to “noisy neighbor” syndrome, where other users use many shared resources, slowing down your application.

This could sometimes only mean a little longer wait times for data processing or more delay. But when the speed of an app is critical, like in trading stocks, customers may not be able to stand the battle for cloud resources. This is why many SaaS companies that offer “business-critical” software still choose single-tenant setups.

Outages in Systems

The application provider is essential for upkeep and upgrades for multi-tenant apps. Technical problems on the vendor side often affect many clients regarding service availability, system upgrades, and localized vs. global processes.

Maintenance and changes may also be complicated with multiple tenants. In systems with only one tenant, changes can be made for each customer. However, updates must be made to all tenants simultaneously in systems with multiple tenants. If this isn’t handled well, it can lead to service interruptions and delays.

Most providers use a microservices design when they build apps to solve problems. They deploy microservices on platforms like Kubernetes, an open-source tool that makes it easier to release, scale, and manage containerized apps.

Multi-tenancy: How It Works

In a multi-tenant architecture, one copy of the application runs on a server that serves more than one user. The tenants are kept separate from each other using conceptual and physical data separation.

Logical segregation means isolating tenants through the application’s code reasoning. The app knows which data belongs to each person based on their login and runs queries.

When you have physical segregation, the data for each user is physically split up and put in different tables in a shared database.

The app is made to handle requests from different renters and give them the correct answers based on the context of the requester, such as only giving them their data or parts of it based on their permissions. Another way sellers manage each customer’s access and rights is through segregation.

Multi-tenant settings are separate and unique but share the same physical infrastructure. In this case, it could be a computer, the cloud, or a virtual machine (VM).

Virtual machines are made with virtualization software, which lets you run various operating systems on a single physical server. For example, you could run Windows on a MacBook.

Servers are computer systems only used to run programs and serve data.

“Cloud environments” usually mean public or private cloud services, making computer tools available over the Internet whenever needed.

The program provider is always in charge of managing and maintaining the hardware. In their virtual settings, tenants can use certain features and make changes, but they don’t have control over the infrastructure underneath.

Multi-tenancy is like a big apartment building where each tenant has a private room (logical segregation). Still, the building’s infrastructure is shared and taken care of by the owner (physical segregation). Costs can be cut, and work can be done more efficiently this way, but each tenant still has a unique living area. On the other hand, single tenancy is like owning a house—you have full power over the property but must pay for all repairs and maintenance.

Different Types of Multi-Tenant Databases

Everything said above about how multi-tenancy works is how every SaaS tool works: each renter is a customer with their data and settings. However, they all use the same application code.

There are, however, three different kinds of libraries.

1. Schemas and databases that are shared

This is the most basic kind of multi-tenant database. Many tenants use the same database to share different layouts. Each renter’s data is kept separate by giving each piece of data in the shared tables a unique identifier, like a customer ID.

This setup doesn’t need many resources and is easy to keep up, which makes it a good choice for small businesses or companies on a budget. But there is the least amount of freedom to make changes.

2. Multiple schemas and a shared database

A different approach to multi-tenancy is to share a single database with various layouts. This allows a company to split different data sets into smaller databases without creating more.

This method gives you more control over modification and data management, and it also works better because each tenant’s data is kept separate. It needs more resources and upkeep than a shared database or shared schema setup, but it’s the best way to follow data privacy laws when dealing with certain types of data.

3. Different databases and schemas

The most complex and expensive method is to set up a multi-tenant database so each tenant has a dedicated database with various schemas. This method completely separates data, making it the safest choice for private information.

This could be seen in a healthcare SaaS app where each tenant is a different hospital or medical clinic. This choice is best for bigger businesses with strict compliance needs because it offers a lot of flexibility and security at a price.

The host must put the apps in their database for each client individually. In addition to raising costs, managing, operating, and growing this multi-tenancy deployment is more complicated.

Different kinds of multi-tenant buildings

It can be isolated, shared, or hybrid, and three main types of multi-tenant design exist.

1. Isolated Renters

Isolated tenancy keeps each user’s data and resources separate from those of other users. This includes separate databases, computers, and instances of applications.

Picture it as a single-family home you’d rent in a neighborhood. Each house has its lawn, utilities, amenities, and backyard. There is no shared equipment or responsibility.

Web hosts like BlueHost and GoDaddy are good examples of separate tenants. Even though the servers are physically in the same data center, each customer gets their server with their tools and apps. The result is very good security and performance.

2. Sharing a house

In shared tenancy, different tenants use the same tools and application infrastructure but are kept separate logically. This is where databases and settings with more than one tenant appear.

This can be seen in a shared office area, where different groups work in the same building. They each have their workspace but share shared areas like a lobby or break room and an elevator to get to their floor.

Slack shows shared ownership very well. Even though they use the same tool for conversation, people in one workspace can’t access anyone else’s.

3. The Hybrid Tenancy

The hybrid tenancy is precisely what it sounds like: it mixes shared and isolated tenancy. Like a townhouse, where everyone has their own home but shares things like a swimming pool (and maybe a wall), this is a lot like that.

A great example of a hybrid lease is Amazon Web Services (AWS). Users can create their private virtual network in their Virtual Private Cloud (VPC), complete with their IP addresses, subnets, and security settings. You can connect each VPC to a shared internet router, which lets them talk to other instances or services in AWS.

Hybrid tenancy is also used when there are different types of users, like resellers or distributors. One level of software tool for wholesalers might be for the brand owners and another for their customers. Every customer would have their own set of tools and data, but everyone who works for the brand owner would share the same infrastructure.

Best Practices for Multiple Tenants

Now that we’ve discussed the different kinds of multi-tenant databases and structures let’s discuss some good things to remember when setting up a multi-tenant system.

1. Separate and protect data

Data isolation is essential for keeping data private and safe in a multi-tenant setting. There should be no way for one tenant’s data to get into another tenant’s data or for data to leak. If you have shared databases with different schemas, you can do this through logical segregation, or if you have separate databases, you can do this through physical isolation.

2. Make a growth plan.

It should be possible for a multi-tenant system to handle more and more tenants and their information without slowing down. If you build your system in a modular way, it will be easy to add or remove resources as needed. Use a microservices design to scale different system parts separately and automatically.

3. Changes and customization

One great thing about multi-tenancy is that you can change the features and functions so each renter is happy. Make your system flexible where it matters, but don’t add too many features that can be changed because it will slow it down or make it harder to use. You could add branding choices, dashboards that can be changed, or the ability to add custom fields. Just make sure to test and write down these features correctly so they are easy to handle.

4. Watch out for costs

Systems with more than one tenant may be cheaper than systems with only one tenant, but costs will still add up. When choosing your tenancy model, consider the costs that might arise, like storage, maintenance, and customer service. Most of the time, isolated tenancy will cost the most, but you’ll have more control over protection and resources. Costs can be cut with a shared database and schema, but speed may be slowed down.