Multi-tenancy is a model of collective rent, when one instance of software deployed on the provider’s server is simultaneously used by several tenants. This principle of service provision, in particular, is implemented in the organization of public cloud services.
The multi-tenancy model is often contrasted with the multi instance model, in which a separate software instance is created for each tenant. The multi-tenancy model, in particular, allows a service provider to save on service organization, since each software instance uses a certain share of RAM and server performance.