Why use multi-tenant not sigle-tenant&multi-environment?

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Posted on by Ethan.s

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Hi guys,

In this MS doc, it says 'should use multi-tenant because of Functional localization and Physical distribution', but I think sigle-tenant&multi-environment can do that also.

I believe multi-tenancy should only be used when data isolation is required. Am I right?

Thank you !!!

Best Regards,

Ethan

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Microsoft Dataverse with Power Apps

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Drew Poggemann 9,287 Most Valuable Professional on at

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Hi @sukie_y ,

The following does a really good job walking through some reasons / situations for Multi-Tenant vs. multi-environment. https://learn.microsoft.com/en-us/power-platform/admin/multiple-online-environments-tenants#a-multi-tenant-deployment

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Ethan.s 115 on at

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@dpoggemann
Thank you!
The link is what I mentioned in my question.
Could please tell me the main reason of using multi-tenant?

Best Regards,
Ethan

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Drew Poggemann 9,287 Most Valuable Professional on at

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Hi @sukie_y ,

Microsoft provided some reasons for multi-tenant. Overall the primary things I think of is if you have Power Platform Administrators or Global Administrators they would have access to all the environments in a single tenant and this may not be appropriate. Setting up different tenants will keep the users completely segregated and they would have to be invited into the other tenant (as a guest) to have any ability to manage environments etc.

There may also be global policies within the tenant that may drive how the tenant behaves and this may need to be completely separate in specific scenarios and keeping the tenants separate would do this.

Overall we have implemented a number of customers and rarely have we ever seen the need for separate tenants outside of large international organizations.

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Ethan.s 115 on at

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@dpoggemann
Than you for the explain and sorry for asking more.
In that MS link, it says the reason of using multi-tenant are Functional localization and Physical distribution. I'm sure about Physical distribution could be done by single-tenant-and-multi-environments, but why Functional localization?
I think even a multinational organization has different users in different regions and regions have separate functionality and customers, it can also use single-tenant-and-multi-environments but not multi-tenant because it doesn't say anything about data compliance or global polices or something.
As the doc mentioned,
Some common examples include: Organizations with different business divisions, each with a different market or model of operation.
Why the above example can't be implemented by single-tenant-and-multi-environments?
Thank you !!

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Fubar 8,361 Super User 2025 Season 2 on at

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In most cases Multi tenancy would be overkill, except where there were legal reasons for distinct separation e.g. there will be sensitive info in Tenancy A that people in Tenancy B must never have access to including the Global Admins of Tenancy B.

Note, early on you could not have Environments in your Tenancy that were from different regions - and different regions may not include all the available functionality that is in the US region - and the article is an old article that has had some updates made to it and may still have some now 'legacy' reasoning.

You may also have fun if you needed multiple instances of other Azure/Office 365 products such as multiple Exchange online instances

Also, you may find some of the Capacity Limits are at the Tenancy level e..g. API Calls by a non-licence users (e.g. non-interactive).

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