The value behind an IT consolidation project is conceptually easy to see: Fewer and larger servers as well as storage systems means easier management and potentially lower overhead, compared to a distributed architectural model.
In fact, one of the biggest pluses of a consolidation project has to do with software licensing costs and support fees, which IT administrators commonly identify as leading budget busters. Simply put: fewer servers and storage arrays means fewer software licenses to acquire and maintain, and that can translate into significant cost-savings. In this case, less is definitely better.