What does "multitenancy" refer to in cloud computing?

Multitenancy in cloud computing refers to a single instance of software that serves multiple clients. This architecture allows for efficient resource utilization, as the same software application and database are shared among different customers or tenants, while keeping their data and configurations isolated. Each client or tenant interacts with the software at the same time but does so in a manner that feels personalized, as their data is logically separated from others.

This approach is advantageous because it reduces the overall infrastructure costs and promotes scalability. Multiple clients can utilize the application without the need for separate installations for each, leading to easier maintenance and updates since changes to the common platform can benefit all users simultaneously.

While other options address aspects of computing and user access, they do not accurately capture the essence of what multitenancy represents in the context of cloud services.