Difference between Single Tenant vs Multi-Tenant Apps in Microsoft Entra

The concept of single-tenant and multi-tenant applications in Microsoft Entra revolves around how resources and access are managed for organizations and users. Single-tenant applications are designed for exclusive use within a specific organization. This setup enhances security and simplifies app management by granting administrators full control.

They are particularly suited for Line-of-Business (LOB) applications and compliance-focused organizations where external access and influences need to be minimized. This arrangement ensures that performance issues from external traffic are avoided, making it a dependable choice for internal operations.

On the other hand, multi-tenant applications cater to users from various organizations, enabling seamless collaboration and resource sharing across multiple tenants. This model is especially advantageous for SaaS solutions, where different organizations' users require streamlined access. By utilizing service principals, permissions, and configurations can be efficiently managed for each tenant, supporting scalability as usage grows.

Multi-tenant apps are cost-efficient and foster a collaborative environment, making them ideal for businesses seeking broader connectivity and engagement. Both models offer distinct advantages and serve specific purposes depending on organizational needs.

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??Advantages of Multi-Tenant Apps in Microsoft Entra

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Single-Tenant Apps:

• Exclusively used within the organization where they are registered.
• Accessible only by users within the same directory.
• Ideal for line-of-business (LOB) apps and organizations with strict compliance requirements.
• Offer enhanced security and reduced risk of unauthorized access.
• Simplify app management as administrators have full control over configurations.
• Minimize performance issues from external traffic.

Multi-Tenant Apps:

• Accessible across multiple organizations or tenants.
• Allow seamless collaboration and cost efficiency by sharing resources across tenants.
• Accommodate a growing number of users and organizations.
• Handle service principals to manage permissions and configurations for each tenant.
• Suitable for SaaS solutions where users from various organizations need access.

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