What is meant by "multi-tenancy" in cloud computing?

"Multi-tenancy" in cloud computing refers to the architecture where a single instance of a software application serves multiple tenants, or users, while keeping their data and configurations separate and secure. This approach is efficient because it allows for resource sharing, reducing costs, and improving scalability. The architecture enables multiple customers—having their independent environments—to utilize the same underlying infrastructure and application software, which enhances ease of maintenance and updates.

With multi-tenancy, service providers can offer a more affordable and flexible solution to their customers since multiple tenants leverage the same resources without the need for dedicated infrastructure for each user. This concept is fundamental in Software as a Service (SaaS) models, where different organizations may utilize the same software but do so in a manner that is secure and compliant with regulations related to data privacy.

The other options do not accurately describe multi-tenancy. For instance, having separate servers for each user contradicts the efficiency and cost-saving advantages of multi-tenancy. Similarly, a specialized cloud for businesses does not encapsulate the essence of serving multiple users on the same instance, and the need for individual applications for different users would negate the benefits of shared resources and streamlined maintenance associated with multi-tenancy.