The multi-tenant option has been available in Dynamics NAV since version 2013R2, and it’s basic purpose is to let you store information about Dynamics NAV application in one application database and your business data in other databases.
The advantage is that you can deploy the same solution across multiple business units or even customers while keeping maintenance centralised. The application database contains the object table and other tables that define the solution, and the data from each customer or tenant stays isolated in separate databases.
It was not until extensions were promoted in version 2016 that multi-tenant environments became a really interesting option. And even if a few partners run environments covering hundreds of companies, it is only recently that we’ve been seeing larger international installations start to implement the solution.
Should larger Dynamics NAV user organisations start considering the multi-tenant option?