Mohammed Noufal Today, we will discuss the differences between single- and multi-tenant hosted software provided by your hosting provider of choice. In the overall scheme of software-as-a-service (SaaS) delivery models, the meaning of “tenant” is specifically utilized to denote a “customer.” So, in essence, when we say single-tenant or multi-tenant, we are stating single-customer or multi-customer SaaS-hosted software that is cloud-based.
Single-tenant and multi-tenant software architectures are distinct approaches for designing and deploying applications, with each offering advantages and uses depending on the application’s nature, target market, data privacy, scalability, and budget. Some applications may benefit from single-tenant architecture’s isolation and customization, while others may prefer multi-tenancy’s scalability and cost-effectiveness.
Build it your way
A dedicated server at Liquid Web can have customized hardware and software component
Key points
After reading this post, you will have a better understanding of following key points:
- Benefits of single-tenancy in software architecture
- Drawbacks of single-tenancy in software architecture
- Benefits of multi-tenant systems
- Drawbacks of multi-tenant systems
- Single-tenant vs. multi-tenant software architecture comparison
- A look at single-tenant and multi-tenant software use cases
- When to leverage single-tenant vs. multi-tenant architecture
- Answers to common questions related to single- vs. multi-tenant systems
What is a single-tenant system?
Single-tenancy refers to a software architecture or hosting model where a single instance of an application or software system serves one customer or client at a time. In other words, each customer or organization has their own dedicated and isolated instance of the application running independently. In addition, the architecture only permits one instance per SaaS server.
Any software’s user interface can be customized after installation or specifically created for the new tenant. Tenants can often customize the software once it is deployed locally to best suit what is required for their environment, but they do not have access to any underlying code.
Benefits of single-tenancy in software
Local management
In a single-tenancy software model, the client has full control over the software’s built-in options or settings. This implies the software offers more leeway in customizing their experience and more control over updates and upgrades.
Dependability
A single-tenant system is considered very reliable due to the independent performance of the tenant’s software. Running the software locally does not affect the performance of another tenant’s activity.
Security
Single-tenant software also allows for a more secure environment. This excellent security is due to every tenant’s information being completely separate from other tenants’ information. However, in a multi-tenant environment, there is limited isolation in a single or shared database. This division allows for the limited accessibility of data between tenants. We mention this explicitly as data can be accessible to everyone in a shared multi-tenant environment.
Backup/restore
In the single-tenant framework, local software is installed and updated, and the tenant can handle upgrades. This model allows for better overall control when configuring backups and recovery options and allows each user’s backup to be done separately.
Migration
If a tenant wants to migrate from a single-tenant environment into a self-hosted or local environment, they can migrate an application to their own managed servers easily. This option allows for a less complicated process if a move is needed or required.
Flexibility
In a single-tenant environment, the implementation and framework are better controlled. This control allows the platform to offer more flexibility in terms of customization and more control over the activity and functions of the local software.
Drawbacks of single-tenancy in software
Single-tenancy can be more costly for customizations and maintenance as it requires more time and resource investment to configure. There are other hidden costs in the total cost of ownership (TCO) to consider that may make this option less appealing eventually if ongoing licensing factors come into play.
Management
Because the end-user usually manages single-tenant systems, additional time for updates and upgrades will be required.
Setup
Implementing a single-tenant system is not always as easy as a multi-tenant system. There can be delays due to the individual installs and learning curves, which need to be considered.
Maintenance
Because single-tenant systems usually require more hands-on maintenance, the end-user or support system tasks may be increased
Resources
With a single-tenant system, resources are not always utilized to their fullest potential, which leads to less efficiency in the system.
What is a multi-tenant system?
Multi-tenancy is the environment in which a single instance of the software running on a software-as-a-service (SaaS) platform serves multiple clients or tenants. Some examples of applications that are multi-tenant are:
- Salesforce
- HubSpot
- Zendesk
- Netflix
- ADP
- Carbonite
Each customer shares a software application and a single database, but each tenant’s data is isolated and remains invisible to other tenants.
Tenants may also be able to personalize some application components. Options like theme colors, specific notification settings, or other internal business-specific policies can be modified, but tenants cannot change the application’s core code.
These options can be compared with single-tenancy architecture in which each consumer has their own software instance and may have partial access to the code. In a Single-Tenancy structure, the owner must modify all the software instances to push the update.
In a cloud computing environment, the meaning of “multi-tenancy architecture” has expanded because of the new frameworks that support virtualization and remote access. Multi-tenancy can be more economical than single-tenancy because the software development and maintenance costs are shared across the architecture. Also, because the provider only has to make a single update, the SaaS provider can push out a single update to the application to upgrade multiple customer’s software. In this type of scenario, each tenant’s data remains invisible to other tenants and isolated.
Benefits of multi-tenant software architecture
There are some advantages of multi-tenant environments and why they are ideal for some organizations. Those are covered in the following sections.
Cost effective
An economic advantage of a multi-tenant system is that the cost per user is lower because the resources are shared. Spreading this cost allows for better utilization of the available funds.
Resource benefits
In a multi-tenant system, the available resources are shared to operate at a higher usage capacity. This offers improved efficiency gains and allows the system to shift underutilized resources to where resources are available.
Support integration
Most SaaS software platforms that utilize a multi-tenant framework are more responsive in supporting their customers. Because these companies usually have a larger volume of customers, their service and support levels tend to be much more substantial. This framework ensures each client has a better, worry-free experience.
Service tasks
A multi-tenant system requires less upkeep by a tenant, as the SaaS vendor provides the backend updates and usually also addresses other maintenance issues. This allows for less focus on the tenants’ having to keep track of updated schedules and upgrades.
Drawbacks of multi-tenant software architecture
Multi-tenancy is a good option for companies that want to begin with fewer internal hardware requirements and want a smoother onboarding process. It is also optimal for customers who do not have the internal tools or resources needed to handle the maintenance and support requirements of a single-tenant system. While applications like Salesforce and ADP reside on multi-tenancy cloud platforms, there are still some limitations that clients need to be aware of.
Security
A multi-tenant software environment can allow more access points for a malicious (state) actor to exploit a system’s vulnerabilities. Cyberattacks occur far too often and target larger firms like Citrix, Equifax, and Blue Cross. They range across all major verticals, including automotive, banking, telecommunications, healthcare, education, pharmaceuticals, energy, IoT devices, and other AI-based systems.
Backup and restoration
Often, multi-tenant software companies struggle to keep up with the latest advances in system backup and restore options. Many firms fail to offer a more durable and resilient restoration option.
Limited management
Multi-tenant platforms usually offer fewer options in terms of customizations, which lessens the overall control over the quality of the environment or the user’s ability to interact with the system.
Concurrent issues
In a multi-tenant ecosystem, if a change is made to the core software that breaks functionality, all tenants are affected. This issue can occur when implementing system upgrades or updates.
Patching issues
A multi-tenant environment usually allows shared access to multiple functionalities within a system. Problems can inevitably occur if a modified feature is dependent upon another functionality.
A perfect example of this is Microsoft’s KB4512508 Cumulative Update issue. They stated they were “working on a resolution” but provided no timeframe for a fix. In this case, when trying to patch a vulnerability and code issues, the outcomes were obscure error codes and broken systems. The key concept here is that more moving parts there are, the higher the chance of breakdown, primarily if shared components affect multiple systems.
Single-tenant vs. multi-tenant software architecture comparison
Here’s a table highlighting the critical differences between single-tenant and multi-tenant software architectures:
| Aspect | Single-Tenant Architecture | Multi-Tenant Architecture |
| Number of Instances | Each customer has a dedicated instance. | All customers share a single instance. |
| Data Security | Strong data isolation, less vulnerable to breaches. | Requires robust security measures for data segregation. |
| Performance | Better performance due to dedicated resources. | Performance can be affected by other tenants’ activities. |
| Resource Allocation | Dedicated resources for each customer. | Resources are shared among all tenants. |
| Data Isolation | Complete isolation between customers’ data. | Data is segregated to ensure privacy and security. |
| Maintenance Complexity | More complex as each instance requires separate maintenance. | Easier maintenance with a single codebase. |
| Scalability | Scalability might be limited based on the infrastructure for each instance. | Better scalability due to shared resources. |
| Cost | Higher infrastructure and maintenance costs. | Lower costs due to resource sharing. |
| Implementation Effort | Generally, more effort is required to set up and manage individual instances. | Less effort for setting up and maintenance. |
| Customization | Highly customizable to meet individual needs. | Limited customization due to shared resources. |
| Use Cases | Often used when high customization or strict data isolation is required. | Suitable for applications with multiple customers and resource optimization. |
Let’s look at a breakdown of single-tenant vs. multi-tenant architecture use cases provided in the next sections.
Single-tenant use cases
Here are the use cases where a single-tenant software solution is ideal:
- High Data Security & Privacy
- Performance-Centric Applications
- Highly Specialized Industries
- Regulatory Compliance
- Customized Solutions
- Legacy Systems
- Unpredictable Workloads
Multi-tenant use cases
The following use cases are best suited for multi-tenant software implementations:
- Cost Efficiency
- Scalability
- SaaS (Software-as-a-Service)
- Ease of Maintenance
- Resource Optimization
- Standardized Offerings
- Collaborative Platforms
When to use single-tenant vs. multi-tenant architecture
Several factors, including the nature of the application, unique requirements, business goals, and budget constraints, influence the decision to utilize single-tenant or multi-tenant architecture. Here’s a breakdown of when each architecture should be used.
Your organization should use single-tenant architecture in the following scenarios:
- Performance optimization is a priority.
- Data isolation and security are critical.
- Customization is essential.
- Legacy systems are in use.
- There is a small user base with fragmented requirements.
- Regulatory compliance is required.
The multi-tenant architecture should be leveraged when the following scenarios are applicable:
- Cost efficiency is a priority.
- Ease of maintenance is important.
- Scalability is crucial.
- Resource sharing is feasible.
- SaaS or cloud-based applications are being using.
- There are standardized offerings.
Answers to common questions
Final thoughts
Utilizing either of these two types of software can significantly benefit your business. Employing a single-tenant software architecture will allow more granular control and can be situated in-house under the supervision of your internal support mechanisms.
Multi-tenant systems can be deployed using an external company and be overseen by them. This kind of system frees up your focus to concentrate more on your business requirements and less on the software itself. Depending on your needs, either of these choices can be beneficial as long as they are a good fit for your business processes.
Liquid Web has experts standing by to answer any questions you may have regarding these and other related technologies. Chat or speak with one of our knowledgeable advisors whenever the need arises.
Note on the original publish date: This blog was originally published in September 2019. It has since been updated for accuracy and comprehensiveness.