An Introduction to Multi-Tenant Architecture for Developing a SaaS Application

Do you know which platform is currently dominating the CRM market? 

Salesforce! 

With a 23.8% market share, it is the world's number one CRM platform today. But how did this SaaS platform achieve such remarkable success, with millions of users leveraging its capabilities every day?

One huge reason is Salesforce's innovative multi-tenant architecture. In fact, it was the first multi-tenant CRM solution to hit the market. What exactly is a multi-tenant architecture, and how can you utilize it to develop your own SaaS application?

In this blog, you will uncover the answers to these questions and explore the multitude of benefits that multi-tenancy offers.

A quick roadmap

• What is multi-tenant architecture?
• Benefits of Multi-Tenant Architecture for Developing a SaaS Application
• What is Better for Me: Single vs. Multi-Tenant Architecture?
• How to Build Multi-tenant SaaS Architecture
• Overcome the Hassle of Building Multi-Tenant SaaS application with Prioxis
• FAQs

What is multi-tenant architecture? 

Imagine a building with multiple apartments occupied by different tenants. Each of these apartments is customized as per the tenant's needs. Plus, every tenant has their own privacy, as no one can see inside each other’s apartment.

This example is an exact replica of a multi-tenant SaaS architecture. It is a software architecture model where a single piece of software serves multiple tenants, aka customers. Each tenant can customize the features of the software as they want and have isolated data and configuration.

However, the entire architecture of software and its core functionality remain the same. Thus, multi-tenant SaaS architecture allows cloud computing service providers to serve many businesses with just a single application, saving their hardware and software costs.

This is why this model has become a top choice for building software-as-a-service (SaaS) models today. Some of the well-known examples of solutions built under this model include Gmail, Yahoo, Shopify, Wix, Trello, Skype, etc.

And if you too are looking for a similar setup for your business, check out some more benefits this model can offer.

Benefits of Multi-Tenant Architecture for Developing a SaaS Application

Save Money in the Long Run

Services, applications, and databases are shared in MTA, leading to lower infrastructure costs in the long run. This also lowers the maintenance and development costs.

Don’t Spend Hours on Updates

There is no need to update the software for each customer individually, saving you time. The updates can be done at one centralized point and made available to all users immediately.

Acquire New Customers Faster

As there is no need to set up a different environment whenever a new tenant is added, you can provide better services with a shorter turnaround time.

Secure Your Tenants Collectively

You can implement any security enhancement across all the tenants at the same time, allowing you to offer integrated protection.

Offer Customers What They Want Under Single Infrastructure

Even though there is a single infrastructure and support, your customers have full freedom to customize the application as they need, thanks to the API. This is a plus for both you and your customer.

Make A Positive Impact on Environment

As you use a single infrastructure, it reduces your hardware and energy use. This helps you reduce your carbon footprint as well.

Build Your Application in No Time 

On-demand cloud computing platforms like AWS and Oracle have made multi-tenant SaaS development services cheaper and more efficient. Because of their scalable infrastructure, you can have your idea transformed into a functional application in much less time than single-tenant infrastructure. 

Now you must be wondering what single-tenant infrastructure is! 

You can compare a single-tenant infrastructure with a bungalow, where only one tenant resides. Thus, in a single tenant's architecture, each customer has their own database, infrastructure, and software. 

Like a bungalow, this model does offer more privacy; however, the maintenance and infrastructure costs are also much higher. However, the freedom to customize is also greater in this model.

What is Better for Me: Single vs. Multi-Tenant Architecture?

The choice between a single tenant or a multi-tenant depends completely on your end goal. 

If you’re looking for a more secure and private setup, a single tenant is a good choice. However, if you want to stay cost-efficient in the long run, multi-tenancy is definitely the best choice. 

Plus, with the adoption of role-based access controls, data encryption, and isolation mechanisms, multi-tenant can be made more secure. Thus, if you want to keep up with modern-day business needs, multi tenant SaaS development services are a better choice.

Now that you have finally decided to go for a multi tenant SaaS application, let’s see how you can build one.

How to build multi-tenant SaaS architecture

Building a multi tenant application requires proper planning and tool-sets. Here are a few points to consider when planning to build your multi tenant SaaS application.

Define Your Goals

Multi Tenant applications come with a lot of benefits; however, they can soon become overwhelming as the number of tenants grows. That is why it is necessary to plan a few things in advance. 

For instance, how many tenants it should support, storage and workload they need, how much customization you should offer, the privacy and compliance regulations your application should meet, etc.

Determine Tenant Policies

You may encounter different types of tenant needs after building your application. Some may need shared databases and fewer resources, while others may need isolated databases.

Take into consideration all these requirements and create your policies accordingly. You can also establish authorization and access control mechanisms to manage tenant-specific permissions.

Enable Tenant Isolation 

As the tenants will have a shared infrastructure, you need to be extra cautious about the data and resources of each tenant. Make sure the data of each tenant is isolated so that there is no security breach, enhancing the overall security of your application.

Consider scalability in your plan

Initially, the number of tenants may be lower, so managing them is easier. However, as your tenant grows, you may find it difficult to manage. So, implement load balancing, caching, and other performance optimization techniques to make your application scalable.

Decide Domain Routing

 To provide access to your application, you need to set up a sign-in URL according to your security needs. You can choose from

• Logical URLs differentiate tenants by name (for example, saas.application.com/company name)
• Cryptic URLs differentiate addresses with unique identifier numbers (such as saas.application.com/company=12345689)
• In-app redirects send users to login pages for authentication

Overcome the Hassle of Building Multi-Tenant SaaS application with Prioxis

Multi-tenancy is a practical solution for cost-effective SaaS product development services. However, ensuring data isolation and security in a shared environment can be challenging. Plus, it can be a complex task to build an application under this architecture. 

That's where the experts come in. You don't have to go it alone to reap the benefits of multi-tenant SaaS. Our team has racked up over 250,000 hours building SaaS apps - we've delivered 400 secure SaaS products and counting.

If you want to maximize the advantages of multi-tenancy while keeping costs low, talk to us. We know how to make your SaaS app successful.