The significance of multi-tenancy in cloud computing lies in its ability to enable multiple customers (tenants) to share the same infrastructure while keeping their data isolated. This model optimizes resource use, reduces costs, and simplifies management for service providers. Each tenant operates in a separate environment, ensuring data privacy and security. Multi-tenancy can enhance the scalability of applications, allowing providers to serve numerous users without impacting performance. This architecture promotes efficiency and agility, making it a popular choice for Software as a Service (SaaS) offerings.