Software as a service (SaaS) is a type of licensing model for software applications. It involves licensing software on a subscription basis and centrally hosting it. Other terms for SaaS are "on-demand software" and "Web-based/web-hosted software". The key benefits of SaaS applications are cost-effectiveness, scalability, and user engagement.

Multi-tenant architecture
Multi-tenant architecture allows multiple instances of an application to operate together in a shared environment. Multi-tenant applications can share a common infrastructure and other assets, while maintaining separate user accounts and configurations. Users can also share data, rules, and database schemas.

Multi-tenant architecture allows for a single codebase for each organization, which makes updates to the SaaS application more efficient for everyone. It also makes managing server infrastructure easier. Some SaaS Design  applications utilize this model, including Netflix, Slack, and Office 365.

In addition to providing increased customization, multi-tenant SaaS apps are more flexible and can integrate with third-party software. SaaS applications are subscription-based, and each vendor offers a unique pricing model. Single-tenant applications are typically more expensive and difficult to maintain.

The advantages of multi-tenant architecture over single-tenant applications include security. Single-tenant architectures can be vulnerable to hacking and breaches. Multi-tenant applications require tighter security controls and authentication. Additionally, users may experience noisy neighbors, which can slow down response time. Depending on the provider, downtime can also occur.

While multi-tenant architecture may have many benefits, it is not always the right choice for every company. The right tenancy model for your business will depend on the services and features that your customers need. It is recommended that you choose an architecture based on your needs and budget.

Key Benefits of Software As a Service (SaaS)