I have to upgrade my JIRA server machine as the existing machine is outdated now.But I have read somewhere that the JIRA license key is mapped with the server machine key and any changes in the server key(new machine's key will be different) can make my license invalid.
Is it true and if so,please suggest an alternative.
Well, you can still upgrade, but only to a version that was released while your licence was valid. For example, if your licence ended on 1st December 2014, then you could upgrade as high as 6.3.11, but not 6.3.12 (that came out after the expiry date)
Ah, ok, a simple migration is easier.
You have two things to consider - the database and the "home" directory.
The home directory is simple - make sure the files on the new machine are a direct copy of the ones on the old machine.
The database is a bit more complex, but the principle is "connect the new installation to the old database without any changes" and the server ID should remain the same, as long as the home directory was copied as well.
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