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Single-Tenant vs Multi-Tenant Architecture: Meaning, Pros & Cons Explored 

Weighing the elements of single-tenant vs multi-tenant architecture is crucial to recognizing how the differences in isolation can help you achieve an optimal cloud environment.

Adeyomola KazeemAleksander HougenIgor Kurtz

Written by Adeyomola Kazeem (Writer)

Reviewed by Aleksander Hougen (Co-Chief Editor)

Facts checked by Igor Kurtz (Fact-checking editor)

Last Updated:

All our content is written fully by humans; we do not publish AI writing. Learn more here.

single tenant vs multi tenant

Key Takeaways: Single-Tenant vs Multi-Tenant 

  • Single-tenant cloud architecture — dedicated to one customer — comes with physical isolation, which translates to enhanced security, consistent performance and more control.
  • In multi-tenant cloud architecture, where resources are shared between multiple customers, you enjoy lower prices thanks to economies of scale. Furthermore, you benefit from higher scalability and reduced operational costs.
  • To enjoy the benefits of both single- and multi-tenant models, you can split your workloads in a mixed-tenancy environment.

Facts & Expert Analysis: Single-Tenant & Multi-Tenant in Cloud Computing

  • Hybrid cloud and mixed tenancy: While hybrid cloud deployments can be single-tenant or multi-tenant, they’re typically mixed-tenant. In mixed-tenant hybrid clouds, you’ll typically find sensitive workloads on dedicated resources in a private cloud, while non-sensitive workloads remain in a public multi-tenant environment.
  • Tenancy at the application level: Applications are commonly multi-tenant, with a single instance of an application and the same database for multiple customers. However, they can also be single-tenant, with separate databases and the same basic software or separate databases and instances of the same software.
  • Compliance: Compliance requirements heavily influence tenancy choice in certain industries, including healthcare, legal and finance, because they handle sensitive customer data that requires extra security.

Cloud computing platforms achieve economies of scale in the cloud by sharing their resources among multiple customers. Nevertheless, having multiple tenants share cloud infrastructure comes with some downsides, which are absent when resources are dedicated to one customer.

Depending on the tenancy model, cloud resources can be either single-tenant (dedicated) or multi-tenant (shared). In addition to being shared or unshared, each model has different characteristics that influence their most fitting use cases. Read on as we explore the differences and implementations of single-tenant vs multi-tenant cloud architecture.

What Is Single-Tenant Architecture?

Single-tenant architecture is a model that involves cloud resources dedicated to one entity, such as an individual or an organization. It is available on both public and private cloud deployment models but is more common with private cloud

Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS) can be single-tenant.

single-tenant architecture
A single-tenant environment is like a single-family home, where resources are dedicated to one family but the bills are higher.

Since single-tenant cloud architecture is dedicated to one user, it offers isolation, and with that comes enhanced security. In addition, it allows a high degree of customization and comes with improved performance since all the computing power is available to one user. That said, single tenancy is expensive.

Single-Tenant System Examples

Examples of a single-tenant system include bare-metal servers on public clouds like IBM Cloud, DigitalOcean and Vultr, as well as SaaS solutions like Microsoft 365, ServiceNow and BMC Helix ITSM.

Vultr Bare Metal
Vultr bare-metal servers allow you to run performance-sensitive workloads
without the noisy neighbor effect.

What Is Multi-Tenant Architecture? 

Multi-tenant architecture is a tenancy model in which multiple users share a single software instance or the same underlying cloud resources. It is the most common tenancy model in the cloud, particularly public cloud environments, and it favors economies of scale. It is available for IaaS, PaaS, SaaS and other delivery models.

multi-tenant architecture
Multi-tenant environments are like apartment complexes, where the bills are lower but you share building resources with neighbors.

In multi-tenant cloud architecture, computing power is shared; therefore, performance may not always be at its peak for each user. In addition, customization is limited and there’s less isolation, which raises security concerns. Nonetheless, the multi-tenant model is often cheaper than the single-tenant model.

Multi-Tenant System Examples

Cloud services like AWS, Azure, Netflix, Gmail and Slack are multi-tenant solutions, but many of them implement robust security to mitigate risks.

AWS Console Home
AWS serves multiple users within virtually isolated environments.

Multi-Tenant vs Single-Tenant: What’s the Difference? 

The primary difference between multi-tenant and single-tenant solutions is resource dedication. However, they also differ in cost, customization, performance, security and scalability.

Feature:Single-TenantMulti-Tenant
ResourcesDedicated infrastructureShared infrastructure
CostMore expensiveLess expensive due to the scale effect
CustomizationAllows more control and a deeper level of customization

Allows more control and a deeper level of customization
Customizable within your allotted environment
PerformancePerformance is more consistentPerformance can be influenced by other tenants sharing the resources
ConfigurationOffers more control and customization but requires more configurationRelatively easier to configure
IsolationOffers physical isolationOffers logical isolation
SecuritySince resources are physically isolated, it offers more securityogical isolation isn’t foolproof, so security is dependent on measures the cloud provider takes
ScalabilityCannot scale as fast as multi-tenant resourcesScales faster than single-tenant resources

What Is Mixed Tenancy? 

Mixed tenancy is a hybrid of single-tenant and multi-tenant systems. Instead of the dualism of being either dedicated or shared, mixed tenancy involves dedicating some resources to single users and sharing other resources with multiple users.

For instance, rather than have all of your workloads run on dedicated resources, in mixed-tenancy you could have sensitive workloads on single-tenant resources while non-sensitive workloads stay on multi-tenant resources. 

Mixed-tenancy offers the best of single- and multi-tenant systems, offering enhanced security, performance and control while ensuring you maintain cost-efficiency.

Single-Tenant vs Multi-Tenant: Use Cases

The most recurring themes in single-tenant use cases are security and control, while in multi-tenant use cases, the goals are typically cost-efficiency and scalability.

When Is Single-Tenant Useful?

The single-tenant model is useful when you want enhanced security and control, such as when deploying workloads involving healthcare data, financial data or government data. Single tenancy also comes in handy when running performance-sensitive workloads, including real-time analytics and scientific computations. 

When Is Multi-Tenant Useful? 

Since they can readily scale up or down, multi-tenant systems are useful when running workloads that serve a massive number of end users, including SaaS solutions like email services and customer resource management.

To ensure cost-efficiency for both the cloud provider and the customer, multi-tenancy is useful in public cloud environments. With many users sharing the underlying IaaS and PaaS resources, cloud providers can make more profit per unit and charge users lower rates.

Single-Tenancy Environment Pros & Cons

Single-tenancy environments offer more security, control and performance, but they cost more and require more effort to set up.

Benefits 

Challenges

Multi-Tenancy Environment Pros & Cons

When in a multi-tenant environment, you’ll pay lower rates and scale faster. However, there’s less isolation and control.

Benefits 

Challenges

Final Thoughts: Single-Tenant vs Multi-Tenant

Even though single-tenant architecture gives you more control, performance and security, it does so at higher rates and at the expense of scalability. Multi-tenant environments, on the other hand, retain scalability and lower rates but cannot offer the consistency and control of single-tenant environments. 

Therefore, whenever possible, it’s best to opt for a mixed-tenant environment to get the best of both worlds.

Do you use any services that you didn’t realize are multi-tenant? Which customizations are you limited from making on the service? Share your experience with multi-tenant and single-tenant services with us in the comments below. As always, thank you for reading.

FAQ: Single-Tenant & Multi-Tenant Architecture in Cloud Computing 

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