The connection between the concepts is: if your multi-tenant strategy is to deploy (hopefully only while in active use) an instance per customer, then the addit

The connection between the concepts is: if your multi-tenant strategy is to deploy (hopefully only while in active use) an instance per customer, then the additional effort to provide on-site installations is relatively low, compared to other multi-tenant strategies. Whether on site installs are a good thing to offer, of course depends on how valuable that is to your customers versus the cost/effort to support it. As you point out there are major trade-offs! If your product architecture requires substantial multi-service complexity per tenant, that points away from the instance per customer strategy.