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Why Multi-Tenancy Application Architecture Matters in 2018


The global public cloud market will reach $146 billion in 2018, a $59 billion increase over 2016. A big chunk of this market is enterprises with a core product built on top of Multi-Tenant Application Architecture. Yet, despite the clear indications multi-tenancy has been a game changer in the tech industry, many are uncertain of exactly what makes an application “Multi-Tenant” or why it matters.

Multi-Tenancy Defined

Multi-tenancy is an architecture in which a single instance of a software application serves multiple customers.” the core of multi-tenancy is the idea of resource maximization. It’s a rather common objective of most business endeavors to maximize available resources. So what makes multi-tenancy special?

The Problems Multi-Tenant Application Architectures Solve

Colocation data centers, virtualization, and middleware sharing are some examples of resource sharing with similar ambitions of reducing cost while maximizing efficiency. What differentiates multi-tenant application architecture is its effectiveness in achieving the same goal in a scalable and sustainable fashion.

Multi-Tenant Application Architecture helps optimize the use of hardware, software, As an alternative to a multi-tenant application, many technology vendors are tempted to enter the market with a solution that simply creates a virtual appliance from existing code, sell a software license, rinse and repeat. There are lower entry costs this way and it seems like a reasonable option for organizations looking to create a cloud offering of a software that already exists. Each upgrade of the application will require each customer to upgrade and the ability to implement tenant management tools and tenant-specific customizations is significantly limited. With multi-tenant architecture centralized updates and maintenance are possible and the level of granularity possible using tenant management tools is significantly higher.

Multi-Tenant vs. Multi-Instance

Making a choice between multi-tenant and multi-instance application architectures will depend almost entirely on your position and the business problems you are trying to solve. As a user, it’s probably best to focus on the end product, meaning evaluating SLAs, functionality, and meeting any relevant requirements for data integrity, security, and uptime as opposed to basing a decision on the underlying architecture.

As a solution provider, your focus should be on which architecture allows your product to add the most value to the marketplace. Will there be more benefit in your team being able to leverage the extensibility of multi-tenancy or the portability of multi-instance? Taking a step back, why not both? A fairly popular approach is to implement groups of tenants across a number of instances. The focus should always be on delivery of the best product possible.

In conclusion, Multi-Tenant Application Architecture is an architecture that allows resources to be centralized and leads to benefits in the form of various technological economies of scale. Multi-tenancy has contributed to a disruptive change in the market over the last 10 years and continues to be at the core of many applications today. While there are alternatives and, in practice, applications may be a bit of a hybrid between multiple architectures, multi-tenancy is a core concept of cloud computing and seems likely to be so for the foreseeable future.

Raghavendra Subbanna
Director-Infrastructure & Managed Services