Multi-tenant

Definition

Multi-tenant is a software architecture where multiple customers share the same application and infrastructure, each with their own isolated data. The opposite, single-tenant, gives each customer their own, separate environment.

One platform, many customers, separated data

With multi-tenant software, all customers run on the same underlying environment, but one customer can never see another's data. Updates and new features become available to everyone at the same time.

Why this affects price

Multi-tenant platforms are typically cheaper to maintain than single-tenant solutions, because the vendor manages one environment instead of a separate installation per customer.

Practical example

A software vendor releases a new feature. On a multi-tenant platform, it's instantly available to all customers, without each one having to update separately.

Related terms

SaaS (Software as a Service) · Composable commerce

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