You need a different database for every instance if JIRA so they do not override each other's data and the data from every instance is not visible from the other JIRA instance.
Please note that having multiple databases does not mean you need a different database server. You could have 2 different databases in the same database server. This DB server could even be running in the same server than your JIRA instances, if it is powerful enough.
Alex is right, but I've found this one often needs more explanation because of the inconsistent and unclear way the database sector phrases things. I try to think of it as: - You need a *server* to run the software on (literally a computer, whether a VM or physical) - You need a *database server* which runs on the server, and provides a "database" (database being one of the unclear words) - You need -separate- *data sets* for each instance of JIRA Talking about the data sets - most big installations will run with a 1:1:1 relationship. There is a server, running a database server and that provides one single data set for JIRA. But you can have a single server running several database servers, and a database server can support many data sets. The important thing is that the data sets are independant - so JIRA-1 will use dataset-1 and JIRA-2 uses dataset-2. You can have the data sets in the same server. The only complications you'll find are resource levels (you need the servers to be powerful enough to handle it all) and that if you decide to stop the *database server* because one of your JIRA systems needs it, then it will stop the other one as well because they're all running in the same place.
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