Our app currently spawns a new database for each client. We\'re starting to wonder whether we should consider refactoring this to a multi-tenant system.
What benefits /
I don't have any experience with this personally, but during the lightning talks at the 2009 Ruby Hoedown, Andrew Coleman presented a plugin he designed and uses for multi-tenant databases in rails w/ subdomains. You can check out the lightning talk slides and here's the acts_as_restricted_subdomain repository.