Cost advantages of multi-tenancy

I read an interesting article on the cost advantages of multi-tenancy over single-tenant applications, Multitenancy Can Have a 16:1 Cost Advantage Over Single-Tenant. The author also gives a nice, clear definition of multi-tenancy:

"Multitenancy is the ability to run multiple customers on a single software instance installed on multiple servers to increase resource utilization by allowing load balancing among tenants, and to reduce operational complexity and cost in managing the software to deliver the service. Tenants on a multitenant system can operate as though they have an instance of the software entirely to themselves which is completely secure and insulated from any impact by other tenants."

In the rest of the article, examples of cost-savings by implementing multi-tenant solutions are being given. Finally, the author indicates that providing quality software is much more important for companies offering SaaS solutions, as they are being paid on a monthly basis, rather than receiving a large amount of money when their software is sold, like is the case with traditional software companies.

To conclude, I would like to quote the author with a statement which is very true:

"Focusing on quality actually lowers costs."

So, let's developer our software with the highest quality standards possible, and save some money in these financially hard times!