Single-Tenant vs Multi-Tenant SaaS Architecture: Benefits and Drawbacks

SaaS has become a rather sought after way to deliver software to customers. All the tech world knows that. As for why it is so celebrated, well SaaS does provide numerous advantages. Now, on to the architecture with which you want to work. First things first, there exist two primary SaaS architectures, namely, single tenants and multi-tenant. A single tenant SaaS approach offers high levels of security and customization. The multi-tenant SaaS architecture too has significant cost advantages. The sharing of infrastructure and maintenance costs among tenants enables such cost benefits, by the way

I will now quickly discuss the pros and cons of each SaaS architecture to enable you  to decide which one you wish to start working on while developing a multi-tenant SaaS application, or perhaps opt for a single tenant app for your organization.

Single Tenant SaaS Architecture: Pros

• Dependable performance: This type of SaaS architecture ensures consistently reliable performance. Each tenant has their own dedicated instance of the software. This is why there is no risk of performance degradation caused by resource contention or even unexpected spikes in usage from other tenants. This ensures that the application performs optimally and meets each customer's specific needs.
• Advanced data security: Single tenant SaaS apps also offer high levels of data security. Once again, this is because each tenant has a separate instance. Consequently, your company's setup bears no risk of unauthorized access from other tenants. For organizations that handle sensitive data this can prove to be particularly important.
• Complete control over customization: Yet another compelling benefit of single tenant SaaS is the provision of a whole lot of customization options. This means organizations can customize the software to meet their specific needs without affecting other tenants. This includes customizing workflows and even system integrations among other things. It goes without saying that such a level of customization can significantly boost efficiency and productivity.

Single Tenant SaaS Architecture: Cons

• Complicated maintenance: Maintaining a single tenant SaaS architecture can be quite challenging. Each instance necessitates separate updates and security fixes which can be time consuming and resource intensive. Additionally, scaling and managing multiple instances can be difficult. This is especially true when the number of tenants increases.
• Complex onboarding: Onboarding new tenants in a single tenant SaaS environment can prove to be an onerous task. It includes creating new instances and migrating data along with countless other processes. This can be time consuming and demands extensive technical knowledge as well.

Multi-Tenant SaaS Architecture: Pros

• Simple to configure: This SaaS architectures are generally easier to set up and manage. This is because several configuration settings and updates can be applied to all tenants at once. This instantly lowers overall administrative costs. 
• Cost effective: This setup is cost effective for both service providers and the customers they serve. Sharing infrastructure and maintenance costs among tenants allows providers to alleviate expenses. This translates into reduced licensing fees and upfront costs for end customers.
• Highly scalable: This SaaS architecture is extremely scalable. Providers are hence able to easily handle an increasing number of tenants. Cloud infrastructure enables providers to dynamically allocate resources to meet the needs of each tenant.

Multi Tenant SaaS Architecture: Cons

• Limited customization: It may limit customization options because a single instance of the software serves multiple tenants. Hence, significant customizations can be difficult and may disrupt the experience of other tenants.
• Data security concerns: Sure enough, providers use strong security measures to protect tenant data. Still, you must strategically evaluate the SaaS provider's security practices and implementations.

Final Words

Your company's needs and priorities will determine which SaaS architecture is ideal. Single-tenant architecture is suitable for businesses with particular requirements or stringent security rules because they provide robust performance, enhanced data protection, and a high degree of customization. However, they can be costly and difficult to maintain. However, multi-tenant designs offer cost-efficiency and scalability, making them more suitable for businesses seeking simplicity and reduced running costs. If you thoroughly consider the benefits and drawbacks of each option, you may choose the best one. Now that you know of the two architectures, will you opt for developing a multi-tenant SaaS application or a single tenant app?