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Why Founders Should Strongly Consider Multi-Tenancy Architecture

February 8, 2023
Written by Golden Section


Founders who partner with Golden Section know that we don’t just offer cash and leave them to navigate the competitive world of B2B SaaS by themselves. We journey together from product development and pre-seed funding all the way through series A rounds to achieve meaningful exits. 

As a VC fund started by technical B2B SaaS founders, we prefer to take an active role in the development of our partners’ products. While we’re constantly on the lookout for the newest technologies, after more than 25 years of experience building software, we remain confident in the tried-and-true best practices in our competitive industry. 

One of the pillars of our development philosophy is anchored on a multi-tenancy due to the scale that is needed in B2B SaaS. With our founders’ best interests in mind and our experience to build on, we recommend multi-tenant software architecture to our portfolio of B2B SaaS companies. 

Here’s why. 

Multi-Tenant Software Architecture: What it is and Why it’s Right for B2B SaaS 

Multi-tenant software architecture is when a single instance of software and its resources on the cloud serve multiple customers (aka tenants) at the same time. Its very structure is ideal for SaaS companies, as it allows multiple clients to access the same software, even while allowing customized tweaks for individual clients. 

Well-known B2B SaaS companies that use multi-tenancy architecture include Salesforce, Slack, Atlassian, and more. 

There are many benefits of using multi-tenant architecture for SaaS products. These include: 

·         Reduce costs: As opposed to each client having their own instance of your company’s software on the cloud, all clients share the same infrastructure and resources. This reduces the costs of maintenance, management, and support. 

·         Scalability: Since all clients use the same infrastructure, you can add new clients and increase capacity as needed, with no extra effort and without changing any existing infrastructure. This eliminates the need for any downtime. 

·         Efficiency: With multi-tenant architecture, resources can be dynamically allocated to clients according to their needs. The result is an efficient use of resources and optimum performance for each client. 

·         Improved security: The very nature of multi-tenant architecture provides a more secure environment than single-tenant as it consolidates the number of instances and systems, reducing the points of entry for potential attackers. Additionally, when multiple clients share the same infrastructure, companies are more willing to invest in the latest security measures, knowing that investing in one comprehensive solution will provide coverage to all clients. 

Team Up with Golden Section for VC Funding and Product Development 

If you have a great B2B SaaS product and want a partner that will invest strategic capital and offer hands-on guidance throughout the product development journey, visit our site and get to know who we are. Multi-tenant architecture is just one way we help our portfolio companies achieve capital efficiency, the backbone of startup success. We have many other products and vehicles to help our founders achieve success, both in the short-term and long-term. 

Want to learn more? Let’s talk. 

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