Is it possible that one organization can have multiple instances in hosted jira?
It is possible. But you would need to buy as many licenses as the number of instances. You can not use same license for multiple instances.
Let me know what license I need to buy.
You have to define the number of users in each instance and then you can buy either Jira Server or Jira Data Center license for each instance.
You can read more here
https://www.atlassian.com/licensing/jira-software
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