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What does mean the multitenant application with Entity Framework

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i do not understand what is  multitenant application ?

is it something like we have sold our ER system to multiple client and application hosted in cloud so anyone can access ERP from any where. say for example our ERP system sold to company1 and company2. both company has few users who will access our ERP. there would be two database for each company. this kind of application is called multitenant application ?


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