I am working with an application where we store our client data in separate SQL databases for each client. So far this has worked great, there was even a case where some ba
Architecturally, this is the right call in general. You've seen the first huge advantage--oftentimes, damage can be limited to a single client and you have near zero risk of a client getting into another client's data. But you are missing the other big advantage--you don't have to keep all the clients on the same database server. When you do get big enough that your server is suffering, you can offload clients onto another box entirely with minimal effort.
I'd also bet you'll run out of bandwidth to manage the databases before your server runs out of steam to handle more databases . . .