this is essential the key (haha) to all shared/shared scenarios, regardless of what tech they are implemented with. The challenge can be migrating from single tennant to this could be fairly impactful, depending on how you built your original solution.
We have about 6 physical DB servers, each client has their own db/schema on one of those boxes. Several thousand clients each with 10s of users per client. It brings in $15m ARR.
So, it works.
We're wanting to move off that architecture to something more future proof, but it's not our biggest pain point at this point in time.