If you need to consolidate your SQL Server instances, a paper you must read is the “SQL Server Consolidation Guidance” avaialable at http://msdn.microsoft.com/en-us/library/ee819082.aspx
If you are thinking in virtualization please considerer the newer processors is second-level address translation (SLAT), also known as nested paging. AMD refers to this technology as NPT, and Intel calls this EPT in their respective processors. The following graph (taken from the Consolidation Guidance) shows how application workload can benefit from the use of SLAT to achieve linear scale and improved performance.
Eduardo Castro Martinez – Microsoft SQL Server MVP
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