Dedicated-Tenant vs Multi-Tenant Architecture: Which SaaS Deployment is Right for You?

One type of cloud architecture is not necessarily better than another. When deciding between dedicated-tenant vs. multi-tenant architecture, your organization's specific needs should determine the deployment type.

To demonstrate how these two architectures work, let’s consider the familiar experience of looking for a place to live. Specifically, let’s pretend you’re trying to decide whether to buy a home or rent a house.

If you like the layouts of apartment buildings you’ve toured, don’t mind sharing common walls, and think your life would be easier if things like maintenance, pest control, and landscaping were done for you, then having your own dedicated space as a tenant within a multi-tenant complex might be the right choice. 

On the other hand, if you want to customize your space, knock down walls, put in a new kitchen, fill your yard with apple trees, and enjoy the safety, security, and responsibility that come with maintaining and protecting your own domain, then a single-family home, where you’re the dedicated tenant, may be a better choice for you.

Like someone searching for a place to call home, deciding between dedicated-tenant and multi-tenant architecture requires considering what you want to do with the space once you move in. As you’ll learn below, the choice to go either way depends on a variety of factors.

Dedicated tenancy is a cloud architecture in which each tenant (that’s you) is completely isolated from all other tenants, with no resource sharing of any kind (similar to someone living in a single-family home). 

Regulated industries, like financial services and healthcare, are prime candidates for a dedicated-tenant system, as they store and protect high-risk and personally identifiable information (PII) in a single database.

In a dedicated-tenant environment, tenants have their own instance of an application in a dedicated infrastructure(s). When 100% isolated in this way, you have control over customer data and customization options, but it comes at a cost. Scalability is key here too - with dedicated-tenant architecture, infrastructure can be quickly scaled to meet your exact needs.

Learn about Ping’s dedicated-tenant cloud solution.

A multi-tenant system is a cloud deployment model in which multiple tenants (that’s you) share the same application instance and its corresponding database and saas server. This is a highly popular configuration for SaaS (software as a service) solutions.

Similar to someone being a tenant in an apartment complex, multi-tenancy is often referred to as “taking a seat” on the platform, where every tenant has access to–and uses–the same resources.

Multi-tenant deployments contain a logical separation of data and configuration, whereas dedicated tenancy provides physical separation. Multi-tenant architecture is generally more cost-effective and quick to deploy, but you give up control over the infrastructure and must use the same resources as other tenants. In some cases, depending on the solution’s capabilities, tenants may have their own dedicated database while still sharing the application. 

Global enterprises and small organizations use many multi-tenant solutions in many different capacities. Some examples are Hubspot, Salesforce, or Github, as well as consumer-facing companies like Netflix.

Learn about Ping’s multi-tenant cloud solution or try it out for free!

Choosing between dedicated-tenancy and multi-tenancy for your cloud environment will entirely depend on the use cases of your business.

For example, startups may need to opt for a more cost-effective and efficient resource as they grow their business. For large enterprises, while a cookie-cutter multi-tenant solution may seem like an attractive solution, customizable features and integrations available with dedicated-tenant solutions may win out due to the flexibility and control they provide.

If you’re trying to decide between dedicated-tenant and multi-tenant architecture, remember that what another company considers an advantage may not be an advantage for you.

Benefits of a Dedicated-Tenant Environment

Companies that choose dedicated-tenancy may do so because they have the following needs: 

• Full control

• Customization

• Support for non-standard apps

• Improved data security, especially if the customer is handling privileged data

• Data Residency and Isolation for regulated customers. E.g. Finance & Healthcare

• Backup and recovery that meets customer SLAs and compliance needs

• No shared infrastructure or impacts from noisy neighbors

• Ability for large enterprises to hyper-scale

   

Learn about Ping’s dedicated-tenant cloud solution.

Companies that choose multi-tenancy may do so because they prefer:

• Easy onboarding 

• Affordable maintenance costs, upgrades, and fixes 

• The benefits that come from economies of scale

• Shared learning of all tenants

• Lower costs due to shared infrastructure and resources

   

Learn about Ping’s multi-tenant cloud solution or try it out for free!

Because we work with the largest enterprises in the world, Ping offers solutions for any deployment model. From dedicated-tenant and multi-tenant to hybrid, on-premise, in a managed cloud, and more. Our Complete Guide to a Ping Identity Cloud Upgrade has all the details. If you’re just starting to consider migrating your software to Ping’s cloud, here are Four Tips for Migration Success.