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We currently have one document library with many folders to organize our documents. We will be adding more documents and we are concerned about scability and performance (specifically, we perform plenty of searches on these documents).
Should we keep this single library with many folders, or should we switch to many libraries to replace this folder structure? (We have MOSS 2007.)
The biggest win with separate document libraries is the ability to have different security settings. Doing different security at the document library level is more efficient than at the folder or item level.
Otherwise you need to test your data structure and access patterns and tune your database I/O and wfe memory appropriately.