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Designing Single- and Multi-Tenancy Solutions for Partners

Learn how Hydrolix designs single- and multi-tenancy solutions for partners as well as solutions that combine both to maximize revenue.

Franz Knupfer

Published:

Jun 11, 2024

8 minute read
, ,

When you’re building new features for your customers, choosing between single- and multi-tenancy models is a critical architectural decision. At Hydrolix, we help partners build white-label solutions, and we’ve designed both single- and multi-tenancy models depending on the use case. One example is our partnership with Akamai to offer TrafficPeak, an observability solution that offers both single-tenant and multi-tenant options. TrafficPeak has generated $8 million in revenue in nine months along with 100% growth quarter over quarter. In addition to observability, we build solutions in other verticals that depend on log data, ranging from CDN monitoring to AdTech and cybersecurity.

This post will cover how Hydrolix implements multi- and single-tenancy solutions and how we partnered with Akamai to create a solution that incorporates both.

Learn more about our partner program.

Multi-Tenancy with Hydrolix

A multi-tenant solution built with Hydrolix maximizes the benefits of Hydrolix’s stateless architecture to provide shared infrastructure to many customers. Each subsystem in Hydrolix is independently scalable (ingest, storage, and query) and uses cloud-native Kubernetes architecture. Customers in a multi-tenancy system share ingest and query architecture, allowing partners to efficiently spread costs across multiple users.

Decoupled Storage Offers More Flexibility

Hydrolix uses decoupled, S3-compatible object storage to dramatically reduce data storage costs. It’s compatible with AWS, Azure, GCP, and Linode. TrafficPeak uses both multi-tenancy and single-tenancy options for customers, and each customer has their own storage bucket. Because of Hydrolix’s decoupled storage architecture, partners have tremendous flexibility in how they want to implement customer storage. Here are two typical storage approaches that a partner using a white-label Hydrolix solution can offer their customers:

  • Fully-managed storage that the partner manages and operates within their own virtual private clouds (VPCs). This is the traditional SaaS model.
  • Self-managed storage where customers set up storage buckets in their own VPCs. For some customers, especially in verticals like cybersecurity, full data control is a powerful selling point.

Partners can even offer both options to provide more flexibility or encourage existing customers to move to premium pricing tiers.

Preventing Resource Contention

Resource contention can be a major problem when multiple stakeholders are using the same resources. It typically occurs when there are “noisy neighbors” or sudden (typically unforeseen) peaks in usage. Noisy neighbors use a disproportionate amount of available resources, degrading performance for other users. And peak events can impact performance for all users sharing infrastructure. For example, a major cybersecurity event such as new information about a zero-day vulnerability might create increased demand across infrastructure.

To prevent resource contention, Hydrolix uses resource pools. You can apply resource pools to each part of the system separately, including ingest (Kafka and Kinesis), query, and merge, a service that runs automatically and further compresses and optimizes stored data.

You can also configure query pools to use a set amount of resources, a feature that is unique to Hydrolix. Memory, CPU, and the number of peers (for parallelism) are all customizable. You can provision more resources to improve performance or create different tiers of accounts based on compute usage.

Ensuring Security and Privacy

Multi-tenancy solutions have some potential downsides. Engineers and architects must carefully consider how they’ll keep each customer instance private and secure in shared infrastructure. With Hydrolix, concerns like security and privacy are already addressed.

Hydrolix uses projects, which are the equivalent of databases. Each project is logically namespaced and separate from other projects. An account can have one or multiple projects. Each project consists of a group of tables. Hydrolix maintains strict data separation between projects and tables and enforces user authentication on all API endpoints. Nuanced RBAC permissions allow for fine-grained access control.

Single-Tenancy with Hydrolix

With single-tenant architecture, each tenant has its own dedicated resources. Because resources are naturally separate, single-tenant solutions are secure by design and don’t have issues with resource contention.

There are several issues with single-tenant architecture when it comes to scalability, including the potential for wasted resources and increased maintenance. But there are also some benefits, too, including increased ability to customize instances, greater control over data, and increased security and privacy. Altogether, incorporating single-tenancy into a solution can be an effective way to give customers a premium experience.

Rightsizing Resources

Sharing resources can help reduce costs and overall resource usage by increasing efficiency, one of the main selling points for multi-tenant architecture. That’s not the case with single-tenant solutions, where you need to manage resources for each tenant. This can be more challenging if an enterprise is directly managing many single-tenant instances. Because resources aren’t shared, overprovisioning can quickly become an issue for many solutions, leading to waste.

With Hydrolix, each part of the system is independently scalable and can auto-scale based on demand, and it’s even possible to scale resources down to zero if needed. This makes it much easier to prevent overprovisioning.

Hydrolix is designed for data at terabyte scale, so single-tenant infrastructure is typically a solution primarily for customers ingesting at least one terabyte of data per day. However, this can be a lucrative use case, as these customers often sign the largest contracts.

Each Instance Must Be Separately Maintained—But Can Also Be Customized

In a multi-tenant architecture, you can maintain and address issues across the entire system all at once. Of course, this also comes with a potential downside—any issues with rollouts will affect all customers in the system.

With single-tenant architecture, each instance needs to be maintained separately. In addition to increased maintenance, there’s the potential for different instances to have version mismatches and inconsistencies across environments, making it more challenging to resolve issues. On the upside, upgrading instances one at a time gives you more control and limits the scope of any issues that arise.

For single tenants, Hydrolix uses Pulumi to automate the deployment process, making it much easier to maintain and upgrade instances. And another upside of single tenancy is increased customization. In multi-tenant environments, it’s much harder to individually customize infrastructure for each customer.

Single-Tenancy Can Be a Premium Experience

While single-tenancy is harder to scale, it confers a number of advantages to end users, including:

  • Ability to customize infrastructure
  • More control
  • Increased privacy and security
  • The ability to fine-tune resources to balance performance versus costs

Together, the benefits of single-tenancy can result in a premium experience for customers, especially large enterprises that have an increased need for privacy, security, and customization. These large enterprises are often the biggest contracts, and being able to offer this flexibility to customers across government, cybersecurity, and other use cases can be a significant driver of revenue growth.

Single-Tenancy, Multi-Tenancy, or Both?

When you’re planning to work with many customers, it typically makes sense to design a multi-tenant solution. These solutions are more scalable, generally easier to maintain than single-tenant solutions, and perhaps most importantly, are typically more cost-effective than single-tenant solutions because you can pool resources.

However, single-tenancy can provide a premium experience for enterprises—and some enterprises may require the increased separation of resources that’s only possible with single-tenant architecture.

Enterprises that require single tenancy are often larger contracts—and whether resources are shared or not can be the determining factor in whether a deal gets inked. These large deals have a significant impact on revenue.

And single-tenant architecture also provides sales teams with an opportunity to upsell to premium tiers, another way to increase revenue.

Finally, some enterprises in verticals like cybersecurity may want to provide dedicated instances to all their customers for increased security and privacy. This is also an option with Hydrolix.

Ultimately, you can partner with Hydrolix to quickly stand up new features and products that incorporate either single-tenancy, multi-tenancy, or both.

How Hydrolix Partners with Akamai to Offer Both Single- and Multi-Tenancy

Hydrolix partners with Akamai to offer TrafficPeak, an observability solution that offers both single-tenant and multi-tenant options. In a matter of months, Hydrolix created an entirely managed solution that Akamai customers can use for cost-effective, long-term “hot” data (readily available for query analysis regardless of whether the data is a day or a year old) at scale. By default, TrafficPeak offers 15 months of data retention, which is far more than other observability solutions where data must be discarded or moved to cold storage within months or even days. Hydrolix currently handles hundreds of terabytes per day of streaming data ingest for TrafficPeak and the solution has generated $8 million over nine months.

The solution offers three tiers:

  • Shared: Shared accounts use multi-tenant infrastructure have up to 1/TB of daily ingest or one billion rows per day.
  • Dedicated: Dedicated accounts use single-tenant infrastructure and have no limits on ingest capacity. (Some customers ingest upwards of 50/TB of data per day, with capacity for more.)
  • BYOL: Bring your own Linode (BYOL) accounts use single-tenant infrastructure and also store data in their own infrastructure.

All three tiers have healthy, dynamic growth—a strong data point in favor of offering both single- and multi-tenancy options to customers.

With TrafficPeak, no “rip and replace” or “lift and shift” was necessary for implementation. Instead, TrafficPeak takes an “augment and accelerate” approach, providing additional value to Akamai customers. Hydrolix can also help partners accelerate “rip and replace” and “lift and shift” processes as well.

Why Partner with Hydrolix

Hydrolix is a streaming data lake designed for real-time ingest at terabyte scale. It is optimized for timestamped data, an ideal fit for log data use cases in observability, cybersecurity, AdTech, CDN monitoring, and more.

Hydrolix uses decoupled object storage, which is much more cost-effective than tightly-coupled storage solutions, so both partners and their customers can keep more data available for quick analysis for much longer. Storage is flexible and pay-as-you-go. You don’t need to preallocate extra storage, and you can pass savings onto customers while also increasing margins. 

Hydrolix is optimized for ad hoc queries at any scale, with sub-second query latency even on tables of a trillion rows. See Maximizing Query Performance for 100+ Billion Row Data Sets to learn more about how Hydrolix queries. Hydrolix also uses summary tables for aggregated data and metrics, perfect for use cases that require real-time dashboards.

Most importantly, Hydrolix achieves this high performance with the lowest unit costs in the industry. Hydrolix uses a high-density compression algorithm to achieve compression rates of 20x-50x. Both partners and their customers can retain much more data than competing solutions can offer while still saving an average of 75% or more over their previous data solutions.

With the option to build single-tenant, multi-tenant, or hybrid solutions with Hydrolix, partners can build on Hydrolix for internal use cases and create added value for customers with additional features.

Next Steps

Watch a two-minute video on the partnership between Hydrolix and Akamai.

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When you’re building new features for your customers, choosing between single- and multi-tenancy models is a critical architectural decision. At Hydrolix, we help partners build white-label solutions, and we’ve designed both single- and multi-tenancy models depending on the use case. One example is our partnership with Akamai to offer TrafficPeak, an observability solution that offers both single-tenant and multi-tenant options. TrafficPeak has generated $8 million in revenue in nine months along with 100% growth quarter over quarter. In addition to observability, we build solutions in other verticals that depend on log data, ranging from CDN monitoring to AdTech and cybersecurity.

This post will cover how Hydrolix implements multi- and single-tenancy solutions and how we partnered with Akamai to create a solution that incorporates both.

Learn more about our partner program.

Multi-Tenancy with Hydrolix

A multi-tenant solution built with Hydrolix maximizes the benefits of Hydrolix’s stateless architecture to provide shared infrastructure to many customers. Each subsystem in Hydrolix is independently scalable (ingest, storage, and query) and uses cloud-native Kubernetes architecture. Customers in a multi-tenancy system share ingest and query architecture, allowing partners to efficiently spread costs across multiple users.

Decoupled Storage Offers More Flexibility

Hydrolix uses decoupled, S3-compatible object storage to dramatically reduce data storage costs. It’s compatible with AWS, Azure, GCP, and Linode. TrafficPeak uses both multi-tenancy and single-tenancy options for customers, and each customer has their own storage bucket. Because of Hydrolix’s decoupled storage architecture, partners have tremendous flexibility in how they want to implement customer storage. Here are two typical storage approaches that a partner using a white-label Hydrolix solution can offer their customers:

  • Fully-managed storage that the partner manages and operates within their own virtual private clouds (VPCs). This is the traditional SaaS model.
  • Self-managed storage where customers set up storage buckets in their own VPCs. For some customers, especially in verticals like cybersecurity, full data control is a powerful selling point.

Partners can even offer both options to provide more flexibility or encourage existing customers to move to premium pricing tiers.

Preventing Resource Contention

Resource contention can be a major problem when multiple stakeholders are using the same resources. It typically occurs when there are “noisy neighbors” or sudden (typically unforeseen) peaks in usage. Noisy neighbors use a disproportionate amount of available resources, degrading performance for other users. And peak events can impact performance for all users sharing infrastructure. For example, a major cybersecurity event such as new information about a zero-day vulnerability might create increased demand across infrastructure.

To prevent resource contention, Hydrolix uses resource pools. You can apply resource pools to each part of the system separately, including ingest (Kafka and Kinesis), query, and merge, a service that runs automatically and further compresses and optimizes stored data.

You can also configure query pools to use a set amount of resources, a feature that is unique to Hydrolix. Memory, CPU, and the number of peers (for parallelism) are all customizable. You can provision more resources to improve performance or create different tiers of accounts based on compute usage.

Ensuring Security and Privacy

Multi-tenancy solutions have some potential downsides. Engineers and architects must carefully consider how they’ll keep each customer instance private and secure in shared infrastructure. With Hydrolix, concerns like security and privacy are already addressed.

Hydrolix uses projects, which are the equivalent of databases. Each project is logically namespaced and separate from other projects. An account can have one or multiple projects. Each project consists of a group of tables. Hydrolix maintains strict data separation between projects and tables and enforces user authentication on all API endpoints. Nuanced RBAC permissions allow for fine-grained access control.

Single-Tenancy with Hydrolix

With single-tenant architecture, each tenant has its own dedicated resources. Because resources are naturally separate, single-tenant solutions are secure by design and don’t have issues with resource contention.

There are several issues with single-tenant architecture when it comes to scalability, including the potential for wasted resources and increased maintenance. But there are also some benefits, too, including increased ability to customize instances, greater control over data, and increased security and privacy. Altogether, incorporating single-tenancy into a solution can be an effective way to give customers a premium experience.

Rightsizing Resources

Sharing resources can help reduce costs and overall resource usage by increasing efficiency, one of the main selling points for multi-tenant architecture. That’s not the case with single-tenant solutions, where you need to manage resources for each tenant. This can be more challenging if an enterprise is directly managing many single-tenant instances. Because resources aren’t shared, overprovisioning can quickly become an issue for many solutions, leading to waste.

With Hydrolix, each part of the system is independently scalable and can auto-scale based on demand, and it’s even possible to scale resources down to zero if needed. This makes it much easier to prevent overprovisioning.

Hydrolix is designed for data at terabyte scale, so single-tenant infrastructure is typically a solution primarily for customers ingesting at least one terabyte of data per day. However, this can be a lucrative use case, as these customers often sign the largest contracts.

Each Instance Must Be Separately Maintained—But Can Also Be Customized

In a multi-tenant architecture, you can maintain and address issues across the entire system all at once. Of course, this also comes with a potential downside—any issues with rollouts will affect all customers in the system.

With single-tenant architecture, each instance needs to be maintained separately. In addition to increased maintenance, there’s the potential for different instances to have version mismatches and inconsistencies across environments, making it more challenging to resolve issues. On the upside, upgrading instances one at a time gives you more control and limits the scope of any issues that arise.

For single tenants, Hydrolix uses Pulumi to automate the deployment process, making it much easier to maintain and upgrade instances. And another upside of single tenancy is increased customization. In multi-tenant environments, it’s much harder to individually customize infrastructure for each customer.

Single-Tenancy Can Be a Premium Experience

While single-tenancy is harder to scale, it confers a number of advantages to end users, including:

  • Ability to customize infrastructure
  • More control
  • Increased privacy and security
  • The ability to fine-tune resources to balance performance versus costs

Together, the benefits of single-tenancy can result in a premium experience for customers, especially large enterprises that have an increased need for privacy, security, and customization. These large enterprises are often the biggest contracts, and being able to offer this flexibility to customers across government, cybersecurity, and other use cases can be a significant driver of revenue growth.

Single-Tenancy, Multi-Tenancy, or Both?

When you’re planning to work with many customers, it typically makes sense to design a multi-tenant solution. These solutions are more scalable, generally easier to maintain than single-tenant solutions, and perhaps most importantly, are typically more cost-effective than single-tenant solutions because you can pool resources.

However, single-tenancy can provide a premium experience for enterprises—and some enterprises may require the increased separation of resources that’s only possible with single-tenant architecture.

Enterprises that require single tenancy are often larger contracts—and whether resources are shared or not can be the determining factor in whether a deal gets inked. These large deals have a significant impact on revenue.

And single-tenant architecture also provides sales teams with an opportunity to upsell to premium tiers, another way to increase revenue.

Finally, some enterprises in verticals like cybersecurity may want to provide dedicated instances to all their customers for increased security and privacy. This is also an option with Hydrolix.

Ultimately, you can partner with Hydrolix to quickly stand up new features and products that incorporate either single-tenancy, multi-tenancy, or both.

How Hydrolix Partners with Akamai to Offer Both Single- and Multi-Tenancy

Hydrolix partners with Akamai to offer TrafficPeak, an observability solution that offers both single-tenant and multi-tenant options. In a matter of months, Hydrolix created an entirely managed solution that Akamai customers can use for cost-effective, long-term “hot” data (readily available for query analysis regardless of whether the data is a day or a year old) at scale. By default, TrafficPeak offers 15 months of data retention, which is far more than other observability solutions where data must be discarded or moved to cold storage within months or even days. Hydrolix currently handles hundreds of terabytes per day of streaming data ingest for TrafficPeak and the solution has generated $8 million over nine months.

The solution offers three tiers:

  • Shared: Shared accounts use multi-tenant infrastructure have up to 1/TB of daily ingest or one billion rows per day.
  • Dedicated: Dedicated accounts use single-tenant infrastructure and have no limits on ingest capacity. (Some customers ingest upwards of 50/TB of data per day, with capacity for more.)
  • BYOL: Bring your own Linode (BYOL) accounts use single-tenant infrastructure and also store data in their own infrastructure.

All three tiers have healthy, dynamic growth—a strong data point in favor of offering both single- and multi-tenancy options to customers.

With TrafficPeak, no “rip and replace” or “lift and shift” was necessary for implementation. Instead, TrafficPeak takes an “augment and accelerate” approach, providing additional value to Akamai customers. Hydrolix can also help partners accelerate “rip and replace” and “lift and shift” processes as well.

Why Partner with Hydrolix

Hydrolix is a streaming data lake designed for real-time ingest at terabyte scale. It is optimized for timestamped data, an ideal fit for log data use cases in observability, cybersecurity, AdTech, CDN monitoring, and more.

Hydrolix uses decoupled object storage, which is much more cost-effective than tightly-coupled storage solutions, so both partners and their customers can keep more data available for quick analysis for much longer. Storage is flexible and pay-as-you-go. You don’t need to preallocate extra storage, and you can pass savings onto customers while also increasing margins. 

Hydrolix is optimized for ad hoc queries at any scale, with sub-second query latency even on tables of a trillion rows. See Maximizing Query Performance for 100+ Billion Row Data Sets to learn more about how Hydrolix queries. Hydrolix also uses summary tables for aggregated data and metrics, perfect for use cases that require real-time dashboards.

Most importantly, Hydrolix achieves this high performance with the lowest unit costs in the industry. Hydrolix uses a high-density compression algorithm to achieve compression rates of 20x-50x. Both partners and their customers can retain much more data than competing solutions can offer while still saving an average of 75% or more over their previous data solutions.

With the option to build single-tenant, multi-tenant, or hybrid solutions with Hydrolix, partners can build on Hydrolix for internal use cases and create added value for customers with additional features.

Next Steps

Watch a two-minute video on the partnership between Hydrolix and Akamai.