In making a case to disallow parameterized SQL in my company's development environment the lead developer related a story about how the last time they used parameterized SQL the server had major performance issues. He said this was because the plan caching ate up almost all of the available memory on the server and switching to stored procedures cleared up the performance issues.
My question: is there a major difference in the memory footprint of a compiled/cached stored procedure and the cached plan for a parameterized SQL?
I have a guess that they also simplified the number of calls by going to procs and that probably had as much impact or more than just going to procs by itself, but I don't know.