In the guide, we are going to dive deep into single tenant and multi-tenant cloud architectures - what they are, their key characteristics, their pros & cons, examples, and more.

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Today, we will be diving into the world of cloud architecture. We'll be exploring the differences between Single-Tenant and Multi-Tenant cloud architectures. 

Imagine cloud architecture as apartments in a building. Single-Tenant is like having a whole apartment to yourself, while Multi-Tenant is sharing an apartment with others. 

We'll break down the pros and cons of each, so you can decide which cloud setup suits your needs or your SaaS needs best. 

So, let's get started!

What is Single Tenant Cloud Architecture?

Single-Tenant Cloud Architecture, also known as dedicated cloud or private cloud, is a type of cloud computing setup where an entire cloud infrastructure is dedicated to a single organization or client. 

In this architecture, all the computing resources, such as servers, storage, and networking, are exclusively used by that organization.

Also Read: Everything to Know About Multi-Cloud Management

Key Characteristics of Single-Tenant Cloud Architecture

1. Isolation

The resources are not shared with other organizations, ensuring complete isolation and privacy. This can enhance security and compliance.

2. Customization

Users have more control over the configuration and customization of the cloud infrastructure, tailoring it to their specific needs.

3. Predictable Performance

Since resources are not shared, performance tends to be more consistent and predictable, making it suitable for applications with high resource demands.

4. Cost

Single-tenant setups are typically more expensive than multi-tenant options because you are paying for dedicated resources.

5. Scalability

While you can scale resources vertically (upgrading existing resources), horizontal scaling (adding more servers) can be more complex and costly.

Let's see an example of it!

Also Read: Top 20 Azure Cloud Cost Optimization Best Practices

Example of Single Tenant Cloud

An example of Single-Tenant Cloud Architecture can be seen in a large financial institution like a bank. Let's take "BankABC" as an example.


BankABC deals with sensitive financial data and has strict regulatory requirements. To ensure data security and compliance, they opt for a Single-Tenant Cloud Architecture.


1. Dedicated Servers

BankABC leases dedicated servers in a data center from a cloud service provider. 

These servers are exclusively used by BankABC and are not shared with any other organization.

2. Isolated Storage

BankABC's customer account data, transaction records, and other sensitive information are stored on these dedicated servers.

No other company's data resides on the same physical hardware.

3. Enhanced Security

BankABC can implement stringent security measures, including firewalls, intrusion detection systems, and encryption, tailored to their specific needs, without worrying about the impact on other tenants.

4. Compliance

BankABC can ensure that its cloud infrastructure complies with industry-specific regulations, such as those set by financial authorities.

5. Predictable Performance

Since BankABC has exclusive access to its servers, it can guarantee consistent and predictable performance for its online banking services, even during peak usage times.

6. Customization

The bank has the freedom to customize its cloud environment, install specific software, and configure the network according to its unique requirements.

In this example, Single-Tenant Cloud Architecture allows BankABC to maintain the highest level of security and control over its infrastructure, which is crucial when dealing with sensitive financial data and adhering to strict regulatory standards.

While it comes at a higher cost compared to shared cloud solutions, the benefits in terms of data isolation and compliance are essential for the bank's operations.

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Advantages and Disadvantages of Single-Tenant Cloud



Enhanced Security: Provides dedicated resources, reducing security risks associated with shared environments.

Higher Cost: Typically comes with a higher price tag due to dedicated resources and infrastructure.

Customization: Allows for tailored configurations to meet specific organizational needs.

Resource Underutilization: This may lead to inefficiencies as resources are exclusively allocated, potentially resulting in unused capacity.

Predictable Performance: Ensures consistent and reliable performance, unaffected by other tenants' activities.

Limited Scalability: Scaling may require additional investment in hardware, making rapid expansion less flexible.

Compliance Assurance: Ideal for industries with strict regulatory requirements, ensuring adherence to compliance standards.

Complex Management: Requires more hands-on management compared to shared environments, potentially increasing operational overhead.

Data Isolation: Guarantees complete isolation of data, minimizing the risk of unauthorized access.

Deployment Time: Set up and deployment may take longer due to the need for dedicated hardware provisioning.

Now, let's move to Multi-Tenant Cloud architecture!

Also Read: What is Containerization?

What is a Multi-Tenant Cloud?

Multi-tenant cloud, also known as a public cloud, is a cloud computing model where multiple organizations, or tenants, share the same cloud infrastructure and resources, such as servers, storage, and networking, provided by a cloud service provider. 

In this setup, the resources are dynamically allocated and shared among various users or organizations, each with its own virtualized environment.

Also Read: S3 vs EFS vs EBS in AWS

Key Characteristics of Multi-Tenant Cloud

1. Shared Resources

Multiple tenants share the same physical infrastructure and resources, including servers, databases, and storage systems.

2. Cost-Efficiency

Since resources are shared among many tenants, the costs are distributed, making it cost-effective for individual organizations.

3. Scalability

Multi-Tenant Cloud allows for easy and flexible scalability. Organizations can quickly scale resources up or down based on their requirements.

Also Read: AWS Karpenter vs Cluster Autoscaler

Example of Multi-Tenant Cloud

Consider a widely used public cloud service like Amazon Web Services (AWS) or Microsoft Azure.


Various organizations, ranging from startups to large enterprises, use AWS for their computing needs.


1. Shared Infrastructure

AWS operates data centers worldwide, and multiple organizations subscribe to its cloud services. 

All these organizations share the same physical infrastructure, such as servers and storage arrays.

2. Virtualization

Each subscribing organization is allocated its own virtualized portion of the cloud infrastructure. 

They have control over their virtual machines, storage, and network configurations.

Also Read: What is an Internal Developer Platform?

3. Resource Pooling

AWS efficiently allocates and manages resources among its customers. This means that while multiple organizations use the same underlying hardware, they don't interfere with each other's operations.

4. Pay-as-You-Go

Organizations pay for the resources they use on a pay-as-you-go basis. This cost-sharing model is more cost-effective than maintaining dedicated hardware.

5. Scalability

Organizations can easily scale their resources up or down based on their needs, whether it's increasing server capacity during a traffic spike or reducing it during off-peak hours.

Also Read: How to Migrate from AWS to Azure?

Advantages and Disadvantages of Multi-Tenant Cloud



Cost Efficiency: Shared infrastructure lowers costs for individual organizations.

Security Concerns: A shared environment can pose security risks.

Scalability: Easily scale resources up or down as needed.

Limited Customization: Less control over infrastructure customization.

Quick Deployment: Rapidly deploy applications without hardware setup.

Performance Variability: Resource contention can lead to performance fluctuations.

Managed Services: Cloud providers handle maintenance and updates.

Compliance Challenges: Complex regulatory compliance in shared environments.

Resource Sharing: Efficiently use and share resources among tenants.

Data Privacy: Potential for data exposure in a shared infrastructure.

Also Read: A Complete Guide to Hybrid Cloud Security

Understanding Mix Tenancy Cloud Model

The "Mixed Tenancy Model" in the context of cloud computing refers to a hybrid approach that combines elements of both Single-Tenant (dedicated) and Multi-Tenant (shared) cloud architectures within a single cloud environment.

In this model, different parts of the infrastructure or services are configured to meet the specific needs of the organization, allowing for flexibility and cloud cost optimization.

Here's a breakdown of the key aspects of the Mixed Tenancy Model:

1. Customization and Isolation 

Some parts of the cloud infrastructure are dedicated to a single organization (Single-Tenant) to meet their unique requirements, such as for sensitive data or specialized applications. 

This ensures customization and isolation in those areas.

2. Shared Resources

Other parts of the infrastructure are shared among multiple tenants (Multi-Tenant), promoting cost-efficiency. 

These shared resources may include non-sensitive data storage, general-purpose computing resources, or services that don't require strict isolation.

3. Flexibility

Organizations can choose which aspects of their cloud environment need dedicated resources and which can be shared, allowing for a balance between customization and cost-effectiveness.

The Mixed Tenancy Model is particularly beneficial for organizations with diverse workloads and varying security and performance requirements. 

It allows them to optimize their cloud infrastructure based on the specific needs of different parts of the business while managing costs effectively.

Now comes the big questions i.e. when to use which?

Also Read: AWS Cost Optimization Best Practices

When to Use Single Tenant vs. Multi-Tenant Cloud Architecture?

The choice between Single-Tenant and Multi-Tenant Cloud Architecture depends on your organization's specific needs, goals, and considerations. 

When to Use Single-Tenant Cloud Architecture?

1. Security and Privacy are a priority.

Use Single-Tenant architecture when you require the highest level of data security and privacy. 

If you handle sensitive customer data, financial information, or health records, dedicated resources can reduce the risk of unauthorized access.

2. Compliance requirements.

If your organization must adhere to strict industry regulations and compliance standards, such as HIPAA in healthcare or GDPR in Europe, Single-Tenant architecture provides greater control and makes compliance easier to achieve.

3. Extensive customization required.

When your applications or workloads require extensive customization of the underlying infrastructure, Single-Tenant is the way to go. 

You have full control over resource configurations and can tailor them to your specific needs.

Also Read: Platform Engineering vs SRE vs DevOps

When to Use Multi-Tenant Cloud Architecture?

1. Need a cost-efficient setup.

When cost optimization is a priority and your applications can share resources without compromising performance or security, Multi-Tenant architecture is cost-effective.

It allows you to share infrastructure expenses with other tenants.

2. Ease of scalability is a requirement.

Multi-tenant is suitable for businesses with fluctuating resource needs. 

It offers easier scalability, as you can add or remove resources as your requirements change without significant upfront investment.

3. General workloads that don't require extensive customizations.

For non-sensitive, general-purpose workloads that don't require extensive customization or isolation, Multi-Tenant is a practical choice. It's commonly used for web hosting, development, and testing environments.

Ultimately, the choice depends on your organization's unique requirements and priorities.

With this, you have reached the end of the blog!

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Summary: Single vs. Multi-Tenant Cloud

In choosing between Single Tenant and Multi-Tenant Cloud Architectures, it's crucial to weigh the benefits and drawbacks.

Single Tenant offers robust security and customization, ideal for sensitive data and compliance needs. However, it comes at a higher cost. 

Multi-Tenant, on the other hand, is cost-effective and scalable, but may not suit applications with stringent security demands. The Mixed Tenancy Model blends both approaches, offering flexibility. 

To decide, consider factors like data sensitivity, compliance, customization needs, and budget constraints. The table below summarizes when to use each type, helping you make the best choice for your specific requirements.