Organizations are entities that group multiple Sites together. They usually represent a real world organization that operates the website. From System administrator perspective, they organize the information in site list view, and can possilbly be used for accounting purposes mapping a site to a client that gets invoiced depending on traffic or other criteria.
Organizaitons are also useful for user management - Organization workgroups may be used for sending notifications to all organization members, or for setting up information sharing privileges across organization's multiple websites.
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