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Definition
Multi tenant refers to an architecture where a single software application or platform serves multiple customers, known as tenants, within a shared environment. Each tenant’s data and configurations are logically isolated, even though the underlying infrastructure is shared.

Why it matters
Multi tenant architectures improve scalability, efficiency, and cost effectiveness by sharing resources across customers. When designed correctly, they provide strong data separation while allowing faster updates, easier maintenance, and consistent security controls across all tenants.

Example use case
A SaaS identity platform serves hundreds of companies on the same infrastructure, while keeping each organization’s users, policies, and data isolated from others.