The document compares three methods for consolidating SQL Server databases: 1) multiple databases on a single SQL Server instance, 2) a single database on multiple SQL Server instances, and 3) hypervisor-based virtualization. It finds that consolidating multiple databases onto a single instance has the lowest direct costs but reduces security and manageability. Using multiple instances improves security but has higher resource needs. Hypervisor-based virtualization maintains security while enabling features like high availability, but has higher licensing costs. The document aims to help decide which approach best balances these technical and business factors for a given environment.