What does 'multi-tenancy' refer to in cloud computing?

Multi-tenancy in cloud computing refers to a software architecture where a single instance of a software application serves multiple customers or tenants. Each tenant's data is isolated and remains invisible to others, ensuring security while promoting resource efficiency. This model allows for shared resources in terms of computing power and storage, leading to cost reductions and simplified maintenance for the provider.

The advantages of multi-tenancy include scalability and the ability for service providers to deliver updates and enhancements to all customers simultaneously without needing to manage separate installations for each one. This architecture is particularly beneficial in Software as a Service (SaaS) environments, where customers can access the same infrastructure and application features while maintaining their own unique data and configurations within the shared environment.