My few sites run on a server with a 3.2GHz Quad Core Xeon E3-1230 CPU on 32GB ram. I just tried to do what you're doing and I started noticing a serious decrease in performance around 2,500 empty top-level forums.
You could probably pull this off, but you'd have to have some serious hardware. If these are for different departments, could you split them up into different vbulletin installations altogether?
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