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SQL Server[s]? Better to have 1 SQL server for all, or SQL server for each app?

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Is it feasible to set up a SQL server with multiple databases for each application, and connect all application servers to this single SQL server and respective database? So long as backups are maintained, as well as system resources guaranteed / monitored frequently?

OR Would it be better to install an instance of SQL server on each application server?

How do you implement SQL server with virtualization? Again, a single SQL server VM with multiple databases for each virtual app server, or virtual app servers, each with their own instance of SQL server installed... ?? Which setup would save the most resources on virtual hosts?

Any advice?? :-(


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