Multiple Instances On A VM

David Klee answers the question, when should you have multiple named instances on a single VM?

I am personally partial to having just one instance per VM, as long as the situation allows for it. The resource management area between SQL Server and Windows allows me to manage the overall resource consumption at the VM level, and en mass, managing at this layer rather than multiple layers is usually preferable. I claim that the extra overhead of managing more VMs is worth the resource management flexibility.

I agree with this.  The biggest advantage I see is in licensing, but if your environment is of a non-trivial size, you’re probably going to license the host instead of individual VMs.  Nevertheless, check out David’s pro-and-con list and see where your situation lies.

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