Multi-tenancy allows an application to behave as multiple independent applications hosted for different clients (i.e. organisations). This might not sound impressive, however as the number of clients increase it becomes more evident that it is easier and more cost effective to run a single application hosted for all the clients rather than hosting an independent application for each client.
Multi-tenancy has become more popular lately and is very useful for the economy in software companies since it makes your service more affordable using cheaper installations/costs. This is because multi-tenancy can lead your business to a higher level of competitive differentiation.