At my institution we are interested in providing an Omeka service, but that would require multiple installs of Omeka. Is there a way we could install an service locally, so our users could create their own Omeka instances and we could support them centrally?

You are not alone. We have heard many institutions request this capability and while it is not currently available we have begun working towards a Omeka multi-site version. We hope it will be ready by next fall, and there should be an announcement of this coming soon.

Great to know, thanks Sheila!