This recently published case study on Dell's SharePoint Server 2007 Deployment showcases how Dell Computer is consolidating 300 SharePoint Portal Server 2003 Servers into a consolidated SharePoint Server 2007 environment with 16 SQL instances with over 35 TB of capacity. It also showcases how this scale will be modular by simply adding additional Front Ends or SQL nodes. The manageability aspects of this consolidation are highlighted.
They use to use File Servers and Public Folders, then they went to SPS 2003, now they are moving to a consolidated MOSS 2007 environment. This is one customer I'm going to continue to keep my eye on.