I think there needs to be a healthy balance in any consolidation effort. We have a TON of servers in our datacenter that run one app or host one or two small databases and the resources on that hardware average under 10% utililization. If you pick and choose the right things to consolidate it can be benefitial and make everyones job easier as you have less physical hardware to maintain and keep up to date. If you take the opposite approach and just pick things and 'force' a consolidation just to consolidate you are in putting the company at risk. We have already consolidated some small apps/databases and the consolidated servers you cannot even tell there is much more load on them. We had too many projects over the years come in and say we need X number of servers for this and that and we SHOULD have stepped in and said what are the requirments and prove you need seperate hardware first.