After all, the ability to keep data and documents separate by client (customers, companies, organizations) makes all the difference.
What does Multi-tenancy mean?
Multi-tenancy refers to the ability of a software or hardware system to serve several clients in a single environment. A synonym for this is multi-client capability. In many cases, multi-tenancy merely consists of a logical separation of the respective IT system. The data of the respective clients is still stored in a database, but access rights control the delimitation of data storage between the clients.
Client-dependent and client-independent data
- All data that belongs individually to the customer is considered client-dependent: Settings, business processes, data and documents, etc.
- All data that is available to all clients at system level is considered to be client-independent: Date, time, rights management, currencies, etc.
Special case: Cross-client data
Cross-client systems are often designed in such a way that they can serve several companies within a company. This can also be referred to as multi-tenancy systems.
- For example, central security guidelines, shared calendars or other global settings that apply to all companies.
- At the same time, individual data and settings for each company can be managed separately and independently of each other in order to support the specific requirements and business processes of each company. For example, for incoming invoice processing with company-specific workflows and configurations.
Practical advantages of multi-tenancy
Multi-client capability offers numerous practical advantages for both customers and software manufacturers. Thanks to the clear separation and efficient management of data and applications, companies and providers alike can benefit from this technology.
Advantages for customers
As customers, companies can implement their own specific requirements and business processes within the system without affecting other customers. This enables individual adaptations, e.g. in the look & feel, or for customer-specific business processes. Data isolation between clients ensures that a client’s data cannot be viewed or changed by other clients. This increases the security and protection of sensitive information. Data protection regulations (GDPR) and security regulations also require this.
Advantages of the multi-tenancy concept for service providers
Multi-client capability enables software providers to design their solutions in a scalable and cost-efficient manner.
- By sharing resources within a single instance, a provider serves several clients simultaneously – without separate systems.
- The central management of data and applications also makes administration easier. This reduces the effort required for maintenance and updates.
- Multi-tenancy enables software manufacturers to flexibly adapt their products to changing requirements and easily integrate new customers.
This leads to considerable cost savings and more efficient use of IT resources.