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Key Benefits of SaaS Multi-Tenant Architecture for Your Application

SaaS services have become quite popular in today’s era, right alongside IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Key reasons for the success of SaaS are its efficient architecture and cost-cutting methodologies  that it offers. A SaaS company can gain maximum benefits out of SaaS applications, if they opt for multi-tenant architecture.

How? Let’s find out:

What is Multi-tenant Architecture?

A multi-tenant architecture is established upon central administration, features a common code application and carries out common instances of application for multiple tenants or clients. Multi-tenant architecture is pre-programmed to safeguard and segregate the data of every tenant from the other tenant.

Key Benefits of SaaS Multi-Tenant Architecture for your application:

Multi-tenant application is a true architecture that signifies high level of SaaS efficiency. Such approach allows SaaS software companies to share all application infrastructure with a single instance of the database. Unlike in single-tenancy, where there is no scope of sharing. Each set of data is tagged as per the customer it belongs to.

Multi-tenancy reaps maximum benefits out of public cloud environment. Which is why, it is the most optimal architecture for SaaS. Few of the key benefits of multi-tenancy are:

1. Easy to Upgrade:

Software as a Service companies just need to update one single central application or
codebase, and the changes will be automatically upgraded across all tenants/users. This is exactly why it becomes easier to spin up a new application and cloud for a new tenant with  multi-tenancy.

2. Easy to Customize

With multi-tenant application, you can maintain a single codebase for all users, whilst providing an extra layer that allows for customizations.

3. Ongoing Costs are reduced

Multi-tenant applications not only save time and speed up upgrades but also demand less
server/cloud requirements. No need to configure various set of resources, as multi-tenancy can survive in a minimal environment. As the application scales up, this approach saves costs in many different ways and becomes more efficient over time. It mainly saves cost of doing business, so you can pass on the savings onto customers.

Multi-tenancy allows tenants to share their resources, applications as well as databases, thereby reducing the cost of investment and maintenance in the long run. Database experts develop three types of multi-tenant architecture for different tenants such as shared, separate and hybrid- as per the need.

4. Adding a New tenant becomes Easy

Often, it is challenging for a SaaS software company to add new customers, as poor on-boarding service can directly affect the growth of their prospects. Hence, utilizing the right techniques for tenant on-boarding is important. Vendors need to lay emphasis on self-sign-up processes.

Multi-tenant application has an automated signup process, along with configured domain and sub-domain. Not just that, even application configuring and setting the default data for a new customer is automated in multi-tenancy. Thus, making new customer on-boarding more efficient.

5. Optimized Performance:

Since variety of elements in the tech stack are shared and scale effectively, multi-tenant SaaS architecture offers optimal reliability, speed and efficiency like never before.

A SaaS development company offers shared code, databases and elements of the tech stack to all tenants at the same time. Thus, making it easier for vendors to assess and optimize response time, speed, upgrades and utilization across the entire system.

If any tenant does not make use of a certain resource provided by the vendor, the same can be utilized by another tenant. This way, the utility of all resources correspond with each other, keeping the cycle in constant motion.


Businesses and organizations looking for a low-cost SaaS solution that also has optimum
efficiency, multi-tenancy is your best option.

Multi-tenancy can serve small businesses, whose scale has no warranted infrastructure to even large-scale organizations that demand access to cloud’s virtually unlimited resources.
Multi-tenancy is highly flexible- it can scale up and down efficiently as per the requirements, no matter how smaller scale the business is. This is challenging to achieve in single-tenant architecture.