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SaaS Architecture: Scenario-Based Questions

56. How do you design and manage multi-tenancy in SaaS applications?

Multi-tenancy allows a single SaaS application instance to serve multiple customers (tenants) securely and efficiently. The challenge lies in balancing data isolation, cost, and scalability.

🏗️ Tenancy Models

  • Shared Database, Shared Schema: All tenants in the same tables (most efficient, least isolated).
  • Shared Database, Isolated Schema: One DB, separate schemas per tenant.
  • Isolated Database per Tenant: Full isolation — more secure, costlier to scale.

🔐 Data Isolation & Security

  • Always scope queries by tenant ID — enforce at DB and app layers.
  • Use row-level security (PostgreSQL RLS) or ORM-level guards.
  • Encrypt tenant-specific data at rest and in transit.
  • Audit access per tenant — separate logs and metrics when possible.

🧰 Tenant Metadata Management

  • Store tenant config centrally (plan, region, quotas, flags).
  • Route users to their correct compute/db location based on subdomain, token, or IDP.
  • Automate tenant onboarding and teardown via scripts or workflows.

📊 Observability & Limits

  • Tag all logs, metrics, and traces by tenant.
  • Enforce tenant-specific quotas (API rate limits, storage, CPU).
  • Use dashboards to detect noisy or underperforming tenants.

✅ Best Practices

  • Design for horizontal scaling — avoid shared bottlenecks.
  • Use feature flags to roll out features tenant-by-tenant.
  • Offer flexible upgrade paths (tiered plans, isolated infra).
  • Support tenant-specific customizations without branching core logic.

🚫 Common Pitfalls

  • Improper scoping of tenant queries — leads to data leaks.
  • Mixing tenant logic deep in app code — makes refactoring hard.
  • Underestimating blast radius of noisy neighbors in shared infra.

📌 Final Insight

Multi-tenancy design is a foundational SaaS decision. Get it right early — it affects scalability, security, pricing, and operations. The best systems make it invisible to tenants but crystal clear to engineers.