Multitenancy refers to a principle in software architecture where a single instance of the software runs on a server, serving multiple client organizations (tenants).The isolation of the client orgainzations(tenants) are made logically, meaning that there is no isolation in the code base to cater to the customization and other requirements for every client (Tenant). Multitenancy is also regarded as one of the essential attributes of cloud computing. Multi-Tenancy as a model is used to share IT resources cost-efficiently and securely in the cloud also acheiving consistent performance.

The clients (tenants) can also be representations of organizations that obtained access to the multitenant application. This is the scenario of an ISV offering services of an application to multiple customer organizations.

Analogy: Just like in an apartment building—in which many tenants cost-efficiently share the common infrastructure of the building but have walls and doors that give them privacy from other tenants—a cloud uses multitenancy technology to share IT resources securely among multiple applications and tenants (businesses, organizations, etc.) that use the cloud.

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