The purpose of multi-tenancy in cloud applications is to optimize resource utilization and deliver services to multiple users or organizations (tenants) from a single instance of an application. This architecture allows for cost efficiency, as resources are shared among tenants, reducing infrastructure and operational costs. Each tenant's data and configurations are isolated to ensure security and privacy. Multi-tenancy supports scalability, enabling applications to accommodate a growing number of users seamlessly. It fosters rapid deployment and updates, allowing vendors to maintain a single codebase while catering to diverse client needs.