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In software engineering, multi-tier architecture (often referred to as n-tier architecture) is a client–server architecture in which presentation, application processing, and data management functions are physically separated. The most widespread use of multi-tier architecture is the three-tier architecture.
N-tier application architecture provides a model by which developers can create flexible and reusable applications. By segregating an application into tiers, developers acquire the option of modifying or adding a specific layer, instead of reworking the entire application. A Three-tier architecture is typically composed of a presentation tier, a domain logic tier, and a data storage tier.
While the concepts of layer and tier are often used interchangeably, one fairly common point of view is that there is indeed a difference. This view holds that a layer is a logical structuring mechanism for the elements that make up the software solution, while a tier is a physical structuring mechanism for the system infrastructure. 
Three-tier architecture is a client–server architecture in which the user interface (presentation), functional process logic ("business rules"), computer data storage and data access are developed and maintained as independent modules, most often on separate platforms. It was developed by John J. Donovan in Open Environment Corporation (OEC), a tools company he founded in Cambridge, Massachusetts.
The three-tier model is a software architecture pattern.
Apart from the usual advantages of modular software with well-defined interfaces, the three-tier architecture is intended to allow any of the three tiers to be upgraded or replaced independently in response to changes in requirements or technology. For example, a change of operating system in the presentation tier would only affect the user interface code.
Typically, the user interface runs on a desktop PC or workstation and uses a standard graphical user interface, functional process logic that may consist of one or more separate modules running on a workstation or application server, and an RDBMS on a database server or mainframe that contains the computer data storage logic. The middle tier may be multi-tiered itself (in which case the overall architecture is called an "n-tier architecture").
Data transfer between tiers is part of the architecture. Protocols involved may include one or more of SNMP, CORBA, Java RMI, .NET Remoting, Windows Communication Foundation, sockets, UDP, web services or other standard or proprietary protocols. Often middleware is used to connect the separate tiers. Separate tiers often (but not necessarily) run on separate physical servers, and each tier may itself run on a cluster.
The end-to-end traceability of data flows through n-tier systems is a challenging task which becomes more important when systems increase in complexity. The Application Response Measurement defines concepts and APIs for measuring performance and correlating transactions between tiers. Generally, the term "tiers" is used to describe physical distribution of components of a system on separate servers, computers, or networks (processing nodes). A three-tier architecture then will have three processing nodes. The term "layers" refer to a logical grouping of components which may or may not be physically located on one processing node.