Yes, you can run two SharePoint farms on the same physical SQL server. You can also run SQL on a virtual machine if you are careful about how to configuring it. But remember virtual machines aren't magic. Adding a new VM to an existing server won't give you more resources. It will simply spread existing resources thinner. So unless your client has lots of space on their existing virutal hosts I would stick to running the new farm on the existing SQL server.Paul Stork SharePoint Server MVP Senior Solutions Architect: BlueChip Consulting Group Blog: http://dontpapanic.com/blog Twitter: Follow @pstork Please remember to mark your question as "answered" if this solves your problem.

1) I am having a Physical SQL server with 3 WFE in MOSS 2007. Now I need to co-exist SharePoint 2010 with 3 WFE. For this among the following which is the better trade-off. Customer unable to provide one more Physical SQL server for SharePoint 2010 due to cost concerns. a) Use existing Physical SQL server which has MOSS 2007 DB for SharePoint 2010 DB in different instances. b) Make use of VM for SQL server for the SharePoint 2010. 2) Is two farms(one with MOSS 2007 and another SharePoint 2010) sharing the same physical Database Server in (separate Instances/same Instance/separate Databases) is supported configuration by Microsoft. Aware of the best practice to use a different SQL server when having more than 4 WFE and preferable to have Physical SQL server over VM. However due to cost concerns looking for trade-off if its supported configuration. Thank & Regards.

Yes, you can run two SharePoint farms on the same physical SQL server. You can also run SQL on a virtual machine if you are careful about how to configuring it. But remember virtual machines aren't magic. Adding a new VM to an existing server won't give you more resources. It will simply spread existing resources thinner. So unless your client has lots of space on their existing virutal hosts I would stick to running the new farm on the existing SQL server.Paul Stork SharePoint Server MVP Senior Solutions Architect: BlueChip Consulting Group Blog: http://dontpapanic.com/blog Twitter: Follow @pstork Please remember to mark your question as "answered" if this solves your problem.