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SaaS Architecture: Scenario-Based Questions

32. How do you design a scalable and secure multi-tenant SaaS architecture?

Multi-tenant SaaS architectures allow multiple customers (tenants) to share infrastructure while maintaining logical isolation. Designing it well requires balancing scalability, security, customization, and observability.

πŸ—οΈ Core Design Patterns

  • Shared Everything: All tenants use the same database and compute layer, distinguished by tenant ID.
  • Shared-nothing: Each tenant has its own isolated stack β€” highest isolation but least efficient.
  • Hybrid: Shared app layer, isolated data layer (e.g., one schema or DB per tenant).

πŸ” Security and Isolation

  • Use tenant-aware access controls in the application layer (filter every request by tenant context).
  • Encrypt tenant data at rest and in transit (use per-tenant keys for higher compliance).
  • Implement RBAC or ABAC to manage roles across and within tenants.

βš™οΈ Scalability Considerations

  • Use horizontal scaling and stateless services to support tenant growth.
  • Auto-scale read replicas or cache layers for high-volume tenants.
  • Support multi-region deployments with geo-routing based on tenant location.

🧰 Customization and Configuration

  • Use feature flags and configuration-as-data to support tenant-specific behavior.
  • Store branding, limits, or preferences in a tenant metadata table or config service.

πŸ“Š Monitoring and Billing

  • Log and trace all activity with tenant ID context.
  • Expose metering and usage dashboards per tenant.
  • Support billing models (e.g., per seat, per usage) based on telemetry.

βœ… Best Practices

  • Tenant ID must be enforced at every boundary (API, DB, cache).
  • Use tenancy-aware data models with indexing and partitioning strategies.
  • Set quotas per tenant to protect against abuse or noisy neighbors.

🚫 Common Pitfalls

  • Skipping access controls β€” exposing one tenant’s data to another.
  • Hardcoding tenant-specific logic in app code β€” reduces maintainability.
  • Inconsistent monitoring or alerting across tenants.

πŸ“Œ Real-World Insight

Successful SaaS platforms like Shopify, Salesforce, and Slack rely on scalable multi-tenant designs with rigorous controls. They build abstractions for config, identity, and observability β€” treating every tenant as a VIP.