Understanding SaaS Multi-Tenant Architecture vs Single-Tenant Architecture  by@henrybell

Understanding SaaS Multi-Tenant Architecture vs Single-Tenant Architecture

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Henry Bell

Henry Bell is the Head of Product at Vendorland.

The word SaaS has become quite popular in today's digital or technology world. In recent years, Software as a Service (SaaS) has become an effective alternative form of software distribution for companies looking to have their software hosted in the cloud by a third party. In fact, SaaS is one of the three main sectors of cloud computing, with Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) being the other two. 

One of the main reasons why SaaS has excelled in the application development market is that it provides an efficient architecture while also assisting significantly in the development and implementation of cost-cutting strategies. Furthermore, the rise of multi-tenant design has brought forward even further benefits when creating SaaS apps. 

To further understand the advantages of multi-tenant design, we will first compare it to single-tenant architecture. 

The SaaS Multi-Tenant Architecture

A Multi-Tenant Architecture is built on a central administration and comprises a shared code application that runs numerous tenants' common instance(s). Furthermore, it protects each tenant's personal information from the others.

To put things into perspective, consider a residential complex with multiple units, each with centralized security at the main door, as well as power and water supply controlled by the apartment owners.

The SaaS Single-Tenant Architecture

The single instance and other supporting infrastructure in a single-tenant architecture provide services to a single customer. Every user or client will have their own database and software instance. In other words, there is no room for sharing a single-tenant architecture. 

Many businesses are using this architecture for various reasons, like its easy migration process. Because all of your data is stored on a single server, exporting and moving data to a new environment, whether cloud-based or on-premises, is considerably easier with the single tenancy.

The Difference Between the Two SaaS Architecture Types

When it comes to the multi-tenant option, a single instance of the program, alongside supporting infrastructure, would serve numerous users. Clients are able to share their database as well as their software application. But despite that, there would be no problems for information mix-up as the software program can recognize the owners of each data. 

According to Microsoft, database experts create three different forms of multi-tenant architecture for different tenants. Depending on the demands, they might be shared, distinct, or even both.

Do You Really Need Multi-Tenant SaaS Architecture? 

Most businesses will choose a multi-tenant SaaS solution due to its benefits. HubSpot, Dropbox, and Salesforce are examples of notable multi-tenant programs. However, there are still compelling reasons why single tenancy may be the best solution for certain businesses.

Advantages of Using Single-Tenant Architecture:

  • Reliable system 
  • Easy backup and recovery process
  • Simple migration

When deciding on the best solution for your company, consider your business operations and your goals for using a SaaS architecture.

To better help you, here are a few questions to ponder before deciding:

  • How much control do you need from the application?
  • What is your financial plan?
  • Do you have a strong security team on staff?
  • How many users do you need to support both now and in the future?

What are the Benefits of Using SaaS Multi-Tenant Architecture?

Multitenancy provides plenty of benefits, which are evident by the rise in the popularity of cloud computing.

Some of these benefits are:

Helps a Lot in Reducing Investment Costs

Computing becomes more cost-effective at scale. Multitenancy allows resources to be aggregated and distributed more efficiently, resulting in lower operating expenses. Paying for access to a cloud service or a SaaS application is typically less expensive for a single user than hosting single-tenant hardware and software. 

Furthermore, maintenance and upgrade fees are often included in the SaaS membership rate, so there should be no unexpected payments.

Allows Easy Addition of Users 

Adding new clients has always been a difficult task for software companies since a poor onboarding experience may result in a loss of business. As a result, you must use the proper approach to bring in new clients. In this case, the self-registration procedure is the key.

The suppliers will benefit from the multi-tenant application because it includes an automated signup procedure. Aside from that, the specified domain and sub-domain are both automated. 

Inexpensive Maintenance

The parts that make up the multi-tenant app are very customizable. This will allow each of the tenants to use the program in the simplest way possible without having to change the existing codes. The data structure does not need to be altered because the system is the same for all tenants. 

Since the program is shared by multiple users, they will split the cost of maintenance and upgrades. 

Getting the Most Out of the Resources

One of the most significant advantages of a multi-tenant application is its ability to make the most of available resources. 

Multi-tenant SaaS architecture has the advantage of being able to share infrastructure and resources, which allows maintenance and utilization to be automated. In addition to that, if a client or tenant is not using a resource, it can be used by another customer or tenant. 

You can even implement forecasting tech, such as Amazon Forecast, to predict business outcomes such as product demands and resource needs based on the multi-tenant structure.


Multi-tenant SaaS solutions are built to cater to all kinds of businesses, large and small. If you need an extension to your system, the program is easily scalable and responsive to shifting demands. 

Final Words 

The multi-tenant architecture clearly plays a critical role in the development of SaaS services. It has plenty of other advantages, including lower development and maintenance costs, as well as increased investment. In many ways, it also replaces the Single-Tenant design. However, it is not easy to work on because there are a few obstacles to overcome if you want to get the most out of it.

The difficulties might include issues with data confidentiality and security, as well as efforts to load the development. You may, however, create a database design and choose how to address the difficulties.

If your company indeed needs a multi-tenant structure, make sure to migrate and use it properly so you can get the most out of it. 


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