Multi-tenancy – what is it, why should you care?

I’m continuing on my jargon busting mission.
Today’s target: “multi-tenancy”‘ and it’s allegedly inferior sibling, “single-tenancy”
What do they mean, and why should you care? I’ll try to answer the second part of that question first from the perspective of “you” being a SaaS startup, and then from the perspective of a Customer.
What is it?

Desktop software was designed to be installed on your computer and only accessed by you and therefore only contain your data. So you are the single tenant. The only person living in that application/database. This is single tenancy.
Software that’s designed from the ground up for the web is designed to be used by lots of people. One application/database, but lots of people using it. (for the techies amongst you, I really do mean one database, not one instance of a SQL server but with multiple databases running in it). This is multi-tenancy.
It does seem that ...

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