Multi-tenancy, a technique which is pioneered by salesforce.com, is an optimization mechanism for hosted services in which multiple customers are consolidated onto the same operational system and thus the economy of scale principles help to effectively drive down the cost of computing infrastructure. In particular, multitenancy allows pooling of resources which improves utilization by eliminating the need to provision each tenant for their maximum load. Therefore, multi-tenancy is an attractive mechanism for both of the service providers who are able to serve more customers with a smaller set of machines, and also to customers of these services who do not need to pay the price of renting the full capacity of a server.
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