Comparing Multi-Tenant and Single-Tenant SaaS Solutions

In cloud computing, there are three main service types that allow customers to access a common pool of resources. These services are offered by service providers, decreasing the end-management user’s work. Traditionally, an on-premise application requires a distinct and specialized server and storage space, i.e., different programs and architecture. With the emergence of a multi-tenant SaaS architecture, migration to cloud computing has proven to be profitable for businesses. These service models might have a single or multiple user architecture. To gain a thorough understanding of this notion, we must first learn about the SaaS service model.

End-users can utilize Software as a Service (SaaS) to access an application that is stored and controlled by the service provider through the internet. As a result, end-users are not responsible for designing, maintaining, or monitoring apps or their underlying infrastructure. The way software is distributed to customers has changed, thanks to SaaS.

Instead of the previous software paradigm, where software was delivered as an on-demand service that required to be deployed in the end-user device, SaaS is delivered as an on-demand web-based service. As a result, the software does not need to be installed on the end user’s device. Users can access a wide range of apps housed on the service cloud infrastructure via the internet via SaaS. Single-tenant and multi-tenant SaaS providers have various architectures.

Further in this article, let’s break down multi-tenant SaaS solutions and single-tenant SaaS and look at the benefits for each one.

Single-Tenant SaaS

In a single-tenant design, each tenant has their own software application and database (client). Because each client has their own dataset and app instance, customers cannot share a database or application. Single-tenant architecture is distinct in that it allows for only one instance per SaaS server, making it one of a kind.

Furthermore, it will allow users to custom-build each piece of software for each client. After the software is deployed locally, clients can customize the UI (User Interface) as they see fit. They can then tailor the software to their exact requirements inside a given setting. They will not, however, have access to the underlying code. It’s also worth noting that the single-tenant architecture can be adapted to Cloud computing. Whenever someone uses a third-party cloud or even a personal cloud service, the single tenancy system is usually used.

Multi-Tenant SaaS

Multiple clients can use the same resources in a multi-tenant SaaS architecture.  Its purpose is to prevent different companies from accessing each other’s data. It has a multi-tenant database that is used by all tenants.

The multi-tenancy architecture is an excellent choice for any business that wishes to have a more pleasant starting experience with less hardware. Within enterprise SaaS systems, the multi-tenant design has become the standard. It must be noted that the multi-tenant SaaS framework allows software users to make large customizations.

One important distinction to make between these two architecture models is that single-tenancy is far more expensive than its equivalent. Furthermore, multi-tenant design makes optimal use of resources and has the potential for a significantly bigger processing capacity.

Single-tenant versus multi-tenant architecture:

Single-Tenant Architecture:

• Single consumer, a single instance of the software
• SaaS client is the tenant
• Greater security
• Availability of resources at all times, which promotes dependability
• Multiple servers and storage space needs to be set up, which is costly
• Scalability is a difficult concept to grasp
• There’ll be fewer chances of downtime

Multi-Tenant Architecture

• Single software instance, numerous customers
• Customers of a SaaS client are tenants
• Weak security
• Availability of resources is determined by the priority list
• All tenants share server and storage capacity, resulting in cost savings
• It’s easier to scale up when a tenant’s capacity is exceeded
• Due to multiple resource requests crowding the system, downtime may increase

Let us have a look at the benefits of each:

Single-Tenant Hosting

• Advanced security: Each client’s data is fully independent of that of another customer in a single-tenancy design. As a result, there are relatively few changes that one client mistakenly accesses the data of another. This system can take advantage of the database’s built-in security to avoid and lessen the risk of hacking.
• Increased dependability: The performance of one client’s system is unaffected by the activity of another client’s system in single-tenancy. Working on a difficult integration for one client’s software will have no effect on the sites of other clients (s).
• Backups and restores are a lot easier: In a single-tenant design, creating a backup or recovering the database is simple because each client database has its own backup. It enables backup and recovery control because one system is backed up to a specific area of the SaaS server.
• Upgrades under your control: Customers that are on a single-tenancy plan can update their subscription separately. It gives you complete control over when and how the upgrading happens. As a result, customers might choose to postpone or even miss out on an upgrade cycle. When a consumer is busy and doesn’t want to be disturbed, this is the ideal alternative.

Multi-Tenant Hosting

• Cost-cutting: In the long run, the multi-tenant design reduces investments. When compared to single-tenant SaaS software, multi-tenant SaaS software is significantly less expensive. This occurs because it allows services, apps, datasets, and assets to be shared.

• Scalable and Elastic: Because the multi-tenant software supports thousands of customers and is highly flexible and adaptable to changing demands. It is not restricted to serving a single-tenant, but can also create a balance among a large number of consumers. Fundamentally, this is the cloud’s primary operational model, which allows for a great deal of team flexibility.
• Automated Configuration: In a multi-tenant setting, the sign-in process is automated. The domain and subdomain setting is also automated. This automates the setup of default data for clients and the deployment of programs, ensuring that users do not face any challenges.
• Optimum use of resources: Because all resources are shared, multi-tenancies operate at optimum resource utilization, resulting in maximum efficiency. This is a continually changing environment where resources are being accessed at the same time.
• Multi-tenant service: A vendor is not required to establish a distinct data centre for each new tenant, as they would in a single-tenant environment. The tenants of a multi-tenant service share a common infrastructure. Individual tenants do not require an increase in the number of data centers.
• Large storage capacity: Multi-tenancy allows businesses of all sizes to share the same infrastructure and data center. Customers no longer have to worry about adding more servers or computing capacity. 

What is best for your business?

Multi-tenancy provides long-term benefits for SaaS application vendors, both in terms of growth and financing. However, it is not an easy undertaking because it comprises a number of significant issues that must be identified. 

Concluding note

Finding a suitable SaaS service or combination of services that fit a company’s business model, compliance requirements, and culture is the most important aspect of an enterprise’s digital transformation strategy. Modernizing application is an unavoidable aspect of a cloud-first digital transformation. Application modernization entails developing a project that aims to extract new business value from prevalent legacy software while also modernizing the structure to include modern features and capabilities. 

You must analyze all technical and business risks before beginning the legacy application modernization process, as this will provide you with actionable data and allow you to choose the optimal strategy for your system. We’ve highlighted some major differences between single-tenant and multiple tenant deployments so that users may pick the right option for their company’s growth.