I am moving from four servers with an independent database running on dual/quad 1GHZ server with 2GB of ram. The application server will remain, but the database will be consolidated on a single quad 3GHZ Xeon with 4GB of memory.
Over the next 12 months, many more solutions are going to be introduced with SQL Server 2005. I would also spend the time and money to thoroughly test the different options and become a pro with the solution you select, so that when a disaster strikes you can keep the SQL Server running that supports the business. Good luck!
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