What does "multi-tenancy" mean in the context of cloud computing?

In the context of cloud computing, multi-tenancy refers to the architecture where multiple customers share the same physical resources or infrastructure while keeping their data logically separated. This model allows cloud service providers to optimize resource utilization and reduce costs by serving multiple clients on the same system, but without compromising individual customer data security and privacy.

This shared infrastructure means that users can benefit from reduced expenses and scalability, as the cloud provider can dynamically allocate resources based on demand. It's an essential aspect of cloud services, as it enables agility and efficiency across a wide range of services while ensuring that each customer's data remains isolated and secure from others.

The other choices reflect characteristics that do not align with the concept of multi-tenancy. Exclusive access to dedicated infrastructure describes single-tenancy, where individual customers have their own resources. Allowing only one customer to use infrastructure at a time is not a feature of cloud computing, as it would negate the benefits of resource sharing. Merging data from different customers contradicts the fundamental principle of maintaining data separation, which is critical for both security and compliance.