Single-Tenant Vs Multi-Tenant Pros and Cons

The type of architecture you choose for your business and customer data is one of the key decisions you make when operating in the cloud. Building profitable SaaS software begins with choosing a cost-effective cloud architecture.

There are two types of cloud environments to consider: 

  • Single-tenant 
  • Multi-tenant 

The security and privacy implications of each type of architecture are different. In addition, the cost of architecture differs significantly by model.

Our goal with this article is to compare single-tenant vs multi-tenant pros and cons and how to help you build more cost-effective applications regardless of the cloud model you choose.

SaaS Single-Tenant Architecture 

A SaaS that has only one tenant is called single-tenant architecture. Dedicated servers and supporting infrastructure are available to each team in the single-tenant SaaS environment.

Users can’t share single-tenant products, but buyers can modify the software to meet their needs.

SaaS environments with a single tenant are like neighborhood communities, where every homeowner can modify and personalize their property. The buyer can customize each software instance to fit the needs of the organization.

And that’s just one of the many advantages of single-tenant architecture. Here are a few more to consider.


  • Enhanced Security

Single tenancy isolates each customer’s data from everyone else. This prevents one customer from accessing the sensitive information of another. In addition, this structure protects against hacking by leveraging security.

  • Operational Reliability

A single-tenant SaaS architecture is considered more reliable since one user’s activity cannot affect another. During a tricky integration, for instance, when one client’s software goes down, other clients’ software won’t be affected.

  • Backup and Restoration Made Easy

A single-tenant SaaS structure allows each client’s database to have its own backup. This makes restoring the database easy. The SaaS server backs up all data to a dedicated component, which allows your team to recover historical data easily. The data you enter will be stored in a unique space in your account.

  • Upgrades for Individuals

In single-tenancy architectures, companies can upgrade their services individually. As soon as the download is available, users can update their accounts instead of waiting for the software provider to launch a universal update. Whenever they need to upgrade their software, it does not disrupt their workflow. Upgrades may be launched during non-peak hours instead of being forced to take place during business hours.

  • Self-Hosted Migration

The single-tenant SaaS architecture makes migration from SaaS to self-hosted easier. Since all your information is in one place, exporting and transferring it is easy.

Let’s compare single-tenant vs multi-tenant cloud now that we’ve covered its basics.

SaaS Multi-Tenant Architecture 

It refers to a structure in which multiple organizations use the same software for storing and saving data. As part of software multi-tenancy, cloud-based software is also used by multiple customers as a single instance.

The database and application are shared by all customers. Multi-tenant architecture is similar to a high-rise building where floorplans are prepared, but only a few adjustments can be made to individual units. A significant change is expensive and time-consuming for the customer.

Let’s analyze why some companies prefer multi-tenant over single-tenant SaaS architecture.


  • Reduced Costs

Multi-tenant architectural models have the advantage of allowing services, databases, resources, and applications to be exchanged between tenants. Consequently, they can be more economical than single-tenant architectures. The software can be accessed by new users as well as original buyers, so scaling has fewer implications.

  • Efficient Resources

Multi-tenant architecture maximizes resource efficiency by sharing all resources. Therefore, multi-tenant SaaS software must be capable of powering multiple customers simultaneously since it’s an environment where resources are being accessed simultaneously.

  • Maintenance Costs are Lower

The software can be kept up-to-date without paying expensive maintenance fees. As opposed to a single-tenant structure, SaaS subscriptions usually only have associated maintenance costs.

Using Shared Data Centers

Vendors don’t have to create a separate data center for every new user, as they do in a single-tenant environment. In addition, using a common infrastructure eliminates the need for tenants to have multiple data centers.

  • Increased Computing Capacity

A multi-tenant architecture allows organizations to keep their data centers and infrastructure the same. Consequently, customers will not need to invest in additional servers or computing capacity.

Let’s examine the drawbacks of single-tenant and multi-tenant SaaS since it is now clear how they differ.

Single-tenant vs multi-tenant pros and cons should be weighed when selecting the right SaaS architecture for your business to get the best results. Listed below are the drawbacks of each type of SaaS architecture to make your job easier.


  • Single-Tenant SaaS Costs More 

As single-tenant SaaS architectures do not allow for cost-sharing for services like deployment and monitoring, they are more expensive. New customers require new instances, and each instance has to be paid for.

In addition, customizing and maintaining software requires more resources and time, which leads to higher costs.

  • Single-Tenant Solution Requires More Maintenance

Managing a single-tenant SaaS architecture involves a lot of maintenance since it requires constant updates and improvements. Since this maintenance will be managed by the user and not the provider, this can be time-consuming for your team.

  • Single-Tenant Solution Can Be More Inefficient 

The efficiency of single-tenant SaaS isn’t realized until it is fully onboarded. Then, depending on how frequently you upgrade the product, you’ll either have to dedicate permanent resources to maintaining it or work through outdated versions. Ultimately, either option may not be the most effective solution for your team.

Having covered single-tenancy, let’s focus on multi-tenancy’s shortcomings.


  • SaaS Multi-Tenant Architecture Can Have More Downtime

It is common for multi-tenant SaaS to rely on large and complex databases that require regular software and hardware outages. The result is inaccessibility issues for your customers and a diminished sense of reliability for your company.

  • Multi-Tenant SaaS Can Experience More In-App Disturbances

With a multi-tenant structure, databases are shared, so your workflow is more likely to be disrupted. Multi-tenant databases, for instance, can affect all customers if one customer is affected. Customers can also experience outages if hardware or software problems occur on the server.

  • Multi-Tenant SaaS Has Limited Customizations

In multi-tenancy, resources and services are shared among multiple customers, so customizations are limited, and the quality of the environment is less controllable. Having less control makes it difficult to customize the software for your business.


So, these are single-tenant vs multi-tenant pros and cons. We hope they will help you choose the best environment for your SaaS startup. But, more importantly, it will help build a SaaS that makes you money.

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