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In a multitenant deployment, information about the Microsoft Dynamics NAV application is stored in a separate application database. Your customers’ data is stored in separate business databases, each of which is a tenant in your deployment. By separating the application from data, you can deploy the same solution to many customers with centralized maintenance of the application and isolation of each tenant. The application database contains the tables that define an application, such as the Object table and other system tables.
For example, if your current solution contains 10 companies in the Microsoft Dynamics NAV database, you can choose to create separate Microsoft Dynamics NAV databases to store each company’s business data. The knowledge about the shared application is then stored in a dedicated application database. Microsoft Dynamics NAV includes Windows PowerShell cmdlets that create an application database and other cmdlets that enable you to create and administer tenant-specific databases.