Best Practice Question

I have around 10 databases currently residing on different platforms which make-up for roughly a terrabyte of information. I would like to migrate all of these DBs over so that they are all managed under one instance of SQL server 2K. In my view this streamlines things a lot and reduces costs of licensing/hardware.

However, is managing all of these databases on one clustered instance of SQL 2k the best approach from a performace stand point? Would it be better to seperate each database onto its own machine? I am under the impression that given enough hardware (processors, RAM) using just one instance of SQL 2k enterprise should be enough to perform the mangement of this data. Is this correct? Is there an optimal model?

Money is always a concern but in this case, performance is the main objective. The size of the data managed will be growing significantly so the system should be scalable.

My background is as a developer so I may not have provided enough to give a good answer. Please ask questions if you need more detail. I am looking for suggestions on the best way to handle this.

Specifically I would like to know the preferred architecture as well as any suggested hardware.

Thanks in advanceThis link may help - http://www.sql-server-performance.com/vldb.asp
I would definitely consider getting some "expert" advice.|||Thanks, Bruce|||Management and administration don't get any better if all databases reside on the same server vs. separate servers. In fact I'd say you may introduce a "one point of failure" situation, especially if you have some ill-tuned or heavily abused databses.