What is Multi-tenant Software?

Multitenancy enables multiple users or customers (i.e., tenants) to access a single instance of a software application (and its underlying database and hardware) while ensuring data privacy and security for each individual tenant.

Multi-tenant applications enable multiple users to share the same underlying resources (i.e., software and hardware). Having to maintain and support only a single revision of the software results in significant cost savings to the customer.

The advantages of multi-tenant cloud services include:

• Lower cost – Eliminates costly IT expenditures for hardware, software, virtual private networks (VPNs), and other related items. Continuous enhancements are also performed by the software vendor, thus eliminating traditional upgrade and maintenance costs
• Scalability – Enables companies to easily add new users and functionality as their business continues to grow and processes evolve
• Highly configurable – Companies can tailor the software to meet their unique business needs without having to perform expensive, time-consuming custom coding

*Source: https://www.ibm.com