Database consolidation is the process of centralizing and sharing of resources for multiple databases and instances. Database consolidation is an important aspect of any server consolidation effort and the reining in of escalating server sprawl.

Benefits of database consolidation include:

Energy saving as fewer servers require less heating and cooling
Space saving as fewer servers have a smaller footprint
Time and money saving through lower IT administrative costs
Reduced time to manage IT resources which can be used in more effective and useful ways
Increased availability and higher utilization rates
Simplified management and greater ease of database administration
Improved quality of database technology by reducing number of database instances
Improved backup and disaster recovery through centralization
Lower licensing costs because fewer instances of the database software are required

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