[6] Multitenancy allows for cost savings over and above the basic economies of scale achievable from consolidating IT resources into a single operation.
[citation needed] In addition, development of multitenant systems[8] is more complex, and security testing is more stringent because multiple customers' data is being commingled.
This reason is probably overhyped as one of the core multitenancy requirements is the need to prevent Service Provider access to customer (tenant) information.
Because of the additional customization complexity and the need to maintain per-tenant metadata, multitenant applications require a larger development effort.
Considerations such as vector-based data sequencing, encryptable algorithm infrastructure, and virtualized control interfaces, must be taken into account.
[10] Multitenant applications are typically required to provide a high degree of customization to support each target organization's needs.
The costs of redesigning applications for multitenancy can be significant, especially for software vendors who continue to offer an on-premises single tenant version of their product.
An increasingly viable alternative route to multitenancy that eliminates the need for significant architectural change is to use virtualization technology to host multiple isolated instances of an application on one or more servers.