Cloud computing is a major driving force worldwide, with its market estimated at $0.68 trillion for 2024 and projected to grow to $1.44 trillion by 2029. SaaS makes up a large chunk of that at about $358.33 billion, primarily driven by SaaS multi-tenant architecture. Today’s in-depth guide from JetBase will introduce this type of architecture and explain why it rules the sector.
Using our prior projects and experience with the technology, we will discuss its pros, cons, and possible types. Our guide will also cover multi-tenant database best practices and take you step by step through developing multi-tenant applications. At the end of our journey, you will know all the essentials about multi-tenancy and how to approach it.
If you’re ready to dive in and explore the benefits and intricacies of multi-tenant SaaS, read on!
What Is Multi-Tenant Architecture?
Multi-tenant SaaS architecture is an approach to SaaS that supports various simultaneous users on a single application. This way, a single service caters to multiple clients without necessarily expanding the physical instances the application runs on. It’s a perfect way to scale while keeping client data secure, as each user is logically isolated from the rest.
With multi-tenant architecture in SaaS solutions, users can customize specific features to meet their needs despite running the same core application. The core aspects of the application remain consistent across tenants. However, it’s possible to adjust settings, configure business rules, and manage access controls to create a personalized experience. As a result, multi-tenant SaaS applications deliver tailored experiences that feel like standalone solutions.
That’s also beneficial for the business because it’s a cost-effective way to accommodate customers' needs and stretch resources more productively. Plus, the isolation of user data makes it a viable choice for internal use. With the right multi-tenant database design, it keeps data under tight authorization locks and moderates access accordingly.
Does multi-tenancy sound like an excellent solution? Well, it actually is. But before we expand on this architecture’s types and virtues, we should address the other kind of tenancy. The following section will compare multi-tenant application architecture with a single-tenant model, highlighting their differences.
Multi-Tenant vs. Single Tenant: Differences
The name may be self-explanatory, but just in case, single-tenant architecture implies that each tenant has its own app instance. It provides complete privacy, full resource accessibility, and control over the app. However, it does have some drawbacks, and this section will explain why you may prefer multi-tenant architecture to the single-tenant approach.
Cost Effectiveness
Say you want to provide your services to five different clients. With multi-tenancy, you only need one instance with enough processing power to serve each. In contrast, a single-tenant structure would require five separate instances, each with its own resources. While that’s understandably more expensive, it also provides a premium service to users.
It’s up to a business to determine whether the convenience of SaaS multi-tenant architecture outweighs the ability to give users the undivided power of a single app instance. Some may prioritize scalability through a horizontal approach (expanding the number of instances), while others scale up, increasing the performance of each instance.
Ability to Customize
Having one user per instance gives more control and flexibility, as clients change it however they see fit. Meanwhile, multi-tenancy means tenants have to cohabitate. Thus, some aspects of the app will remain unchanged. Still, multi-tenant SaaS architecture offers a degree of customization that may be sufficient.
Scalability and Maintenance
It might seem like maintenance would be easier with the single-tenant architecture, as you could apply it when necessary on a case-by-case basis. But in reality, multi-tenancy efficiently tackles upgrades and maintenance downtime, doing the work for all tenants simultaneously. Instead, single-tenant solutions require separate processes for each instance, taking more time.
Scaling is debatable here, as SaaS multi-tenant architecture streamlines scalability, with one instance getting upgraded and affecting multiple tenants. But, if cost isn’t a factor, single-tenant instances can be expanded and upgraded easily, raising their capacity. Still, cost-efficiency and scalability are tied directly together for most companies, pushing multi-tenancy ahead.
Privacy
For single-tenant architecture, privacy is a matter of enabling encryption and protecting the backend infrastructure. As each user has their own app instance, data just needs protection from external attacks. However, multi-tenant architecture requires a bit more than that. Multiple tenants coexist in one space, meaning data needs another layer of internal protection.
Performance
There’s no contest here, as single-tenant architecture gives one tenant full resources of one instance, dedicating that power to their needs. Meanwhile, SaaS multi-tenant architecture requires you to split those resources between several tenants, limiting their access. It’s not inherently a problem, and you can work around it. However, the single-tenant architecture has an obvious advantage here.
To sum up, this table highlights the differences between multi- and single-tenant approaches. Feel free to assess whether multi-tenant architecture suits you.
| Factor | Multi-Tenant | Single-Tenant |
|---|---|---|
| Price | Lower cost overall | Higher cost with extra instances to accommodate more clients |
| Flexibility | Limited to fit multiple tenants | Practically unlimited with every tenant using their configuration |
| Scaling | Cheaper but somewhat limited by only having one instance | Costly but essentially limitless |
| Privacy | Extra attention required to keep information isolated between tenants | Standard security protocols are sufficient
|
| Ease of maintenance | Simultaneous upgrades and maintenance for all tenants | Time-consuming maintenance processes done separately for each tenant |
| Performance | Resources are split equally between tenants with the ability to prioritize some using automation | Each tenant gets undivided resources from a single instance, boosting performance |
Types of Multi-Tenant Architecture
Although multi-tenant data architecture is a variation of SaaS architecture, it also has several subtypes. There are three of them, and we’ll discuss each in detail to give you an idea of how diverse multi-tenancy is.
One App, One Database
This model is known for ease of maintenance and deployment, as you’re only concerned with running and controlling a single instance with one database. Its shortcomings lie in your focus on isolating each tenant’s data from the rest. That complicates security protocols and creates a higher risk in case of a data breach.
Plus, it’s a bit more challenging to scale as the multi-tenant database design limits what you can use. It’s still possible to satisfy the client’s resource needs. However, the one-one model makes it more complicated.
One App, Multi-Database
The one-many multi-tenant architecture model is ideal if data isolation is among your most significant concerns. With each tenant getting their own database, despite using the same app, all user data is secure, and others don’t affect it. On the other hand, this model complicates database management and maintenance, as you must work with more entities.
Multi-App, Multi-Database
With each tenant having their own app instance and database, such solutions resemble single-tenant ones. This approach to multi-tenant architecture is practical for those who need every tenant to have full control and undivided resources. It’s like a premium version of multi-tenancy, where tenants get all the benefits, though vendors have to deal with technical complications.
SaaS Multi-Tenant Architecture Pros and Cons
We’ve discussed the advantages of multi-tenant architecture extensively, but it’s important to present a balanced perspective. In this section, we will compare the benefits and downsides of multi-tenancy.
Pro: Lower End-Cost
As all tenants use the same infrastructure, the cloud provider shouldn’t spend as much, offering customers lower rates. It makes multi-tenancy an affordable option for businesses and their clients.
Pro: No-Code Customization
The vendor accommodates the tenants’ requests, customizing the app and platform to meet their needs. It doesn’t involve any coding on the tenants’ part, making multi-tenant architecture easier for them.
Pro: Easy Maintenance
As updates apply to every tenant, infrastructure maintenance becomes more accessible and time-efficient. All tenants receive new features and fixes without wasting time customizing the updates for different environments.
Con: Security Requirements
If you opt for a one-one model of multi-tenant data architecture, extra security practices will be essential to isolate and protect tenant data. Existing in the same database without necessary authorization protocols often leads to data cross-contamination or leaks. Therefore, you should put more effort into security than with a usual model.
Con: Resource Sharing
Another downside of multi-tenant architecture is that tenants always have to share. They split resources, so if one tenant puts an extra load on the server, it becomes everyone’s problem.
Con: Complex Structure
On the vendor side, maintaining a cohesive infrastructure with multiple tenants vying for resources and storing their data is often challenging. However, with a skillful team like JetBase by your side, you will have no trouble working with multi-tenant architecture.
| Pros | Cons |
|---|---|
| More affordable: Multi-tenancy is a cheaper model. | More security needed: As you store data for many tenants in one place, more practices are necessary to keep it safe. |
| No-code customization: Provide flexible customization to tenants without them having to code. | Resource sharing: All tenants influence the infrastructure and must split available resources between them. |
| Simplified maintenance: Push updates for all tenants simultaneously. | Infrastructure complexity: Catering to many tenants is technically complex. |
Multi-Tenant SaaS Application Development Best Practices
Now that you've learned the basics of multi-tenancy, it's time to find out how to implement it. Here are some tips and tricks to assist you.
Use Data Loss Prevention
Securing client data should always be a top priority for businesses, and DLP is a perfect way to achieve that. For a multi-tenant architecture example, think of how much valuable information lies in one database and what would happen in case of a breach or data leak. That’s why it’s crucial to encrypt data, create secure backups, and establish multi-layer access protocols.
Set Quotas
We’ll discuss agreements that define what tenants get regarding resources below, but it’s equally essential to impose technical limits. Monitor your system’s performance and set usage quotas according to your capabilities. These are usually dynamic and change according to how many tenants actively use the system.
Rely on Versioning
In a multi-tenant architecture, keeping your tenants in the loop and using the latest, updated app version can be tricky. With semantic versioning, you inform tenants and denote significant changes. Meanwhile, establishing backward compatibility is helpful when rolling back. The latter may otherwise be challenging, primarily when the environment supports multiple, varied tenants and their processes.
SLAs in a Multi-tenant Application Architecture
Service Level Agreements, or SLAs, are legally binding paperwork stipulating what a tenant will get when signing on with a multi-tenant architecture SaaS vendor. These documents traditionally include all the technical specs that a client is interested in, such as:
The documents should outline specific information on how you run the service and establish liability for failing to provide it. They should also denote what would be considered a breach of contract or failure to provide the described services.
When working with multi-tenant architecture, it’s possible to write up different SLAs depending on the tenant’s payment plan and service tiers. This way, you establish VIP tenants who receive priority based on their status and needs. Laying this out in an SLA guarantees your tenants’ legal rights. Besides, it protects the vendor from customers who may overstep the limits.
It’s crucial to create SLAs with the consultation of a legal and technical expert. At the very least, they should draw up a template, which you will later adjust to match tenants’ needs. Remember that an SLA is a legally binding document regardless of your chosen approach, and one should treat it as such.
Multi-Tenant Architecture Examples
You can build a multi-tenant SaaS product in several different ways, depending on your priorities. In this section, we’ll discuss your options and outline what sets them apart.
URL-Based Access
Our first multi-tenant architecture example relies on user-specific URLs that serve as pathways to app instances. This approach isolates tenants and improves overall UX since their application is easily accessible. However, it also creates a potential issue where a URL leak or an internal error gives one tenant access to others’ spaces.
That said, URL-centric multi-tenancy is usually preferable when branding and ease of access take precedence. Businesses requiring streamlined access to their app instance appreciate the simplicity, making it an optimal choice. However, it’s still worth discussing it with the tenants. Also, one should consider establishing extra security protocols to make this solution safer.
Virtualization Tenancy
The next multi-tenant architecture example involves virtualization to create containerized spaces on the same hardware. These virtual instances separate tenants completely, ensuring robust security and independence. Thanks to this approach, changes one tenant makes never affect another, providing more operational flexibility.
This method works best if isolating tenants is your utmost priority. Another significant advantage is that it’s highly cost-effective. With all tenants sharing one physical server, the expenses are minimal, while the effect is similar to a full-fledged, expansive infrastructure.
General Multi-Tenancy
Lastly, there is the option to serve multiple tenants in one app instance without virtualization or rerouting. In this case, you achieve containerization via processing logic while tenants still share the same space. Therefore, it’s easier to push updates and hold maintenance work.
However, this simple model comes with several issues. We've already highlighted that extra security considerations are necessary to protect and keep data isolated for each tenant. Customization is also a bit curtailed here, as all tenants’ changes influence each other. As a result, this model works best when efficiency trumps flexibility and isolation.
Building a Multi-Tenant SaaS Application with JetBase
We’ve talked a lot about the theoretical and technical aspects of multi-tenancy. However, handling the practical part of creating a multi-tenant environment is just as critical. In this section, we’ll cover the process of building the multi-tenant web application architecture and how JetBase handles it. Step by step, we’ll walk you through creating a SaaS app and show you how to do it correctly.
Step 1: Plan Your Infrastructure
The above section presented a few models for multi-tenancy. As you plan your project, you should decide which one works best for you. Set and answer some questions regarding your desired number of tenants, their needs, your plans for scaling, and how you want to handle maintenance. With that in mind, you’ll have a clear picture of what you need in technical terms.
Step 2: Set Up Tenant Management
Automatic checks that balance server load and enforce resource quotas are paramount, as is a database that supports multi-tenant architecture. Include any limits you set in the SLAs to ensure tenants know your rules and conditions and can follow them. Set up continuous monitoring and data analysis. These will let you adjust your SaaS and scale it whenever necessary.
Step 3: Choose Your Platform
Depending on how you want to structure your SaaS, a Kubernetes-based platform or a microservices one might be your go-to choice. Regardless, select one that fits your needs and start working on it.
Step 4: Establish Authorization Checks
An integral part of multi-tenant architecture is keeping tenants separate and protecting their data. Therefore, it’s vital to set up auth checks and procedures to provide access tokens to only a select number of users. This will prevent tenants from accessing each other’s data.
Step 5: Configure Routing
Set up a system that pushes tenants toward their private instances or containers, whether through logical or encrypted URLs or an in-app redirect system. This way, users can easily navigate the app without stumbling into the wrong container.
If you’d like to know more about how JetBase approaches these steps or why our SaaS projects win awards, you can talk to the team and set up our collaboration. For an initial consultation, just send us a message.
