What I need is to have multiple JIRA instances which will be load balanced. So an issue can get created in any instance but it needs to be sync'd with the other instance(s).There are multiple reasons why I need this kind of set up. Firstly, if one of the instances goes down or there is some network issue, the other instance(s) will automatically be used because of load balancing. Secondly, if the number of users increase drastically, if the instances are load balanced, scalability will not be an issue.
How do I accomplish this with JIRA?
What you're looking for is clustering. This isn't available at this point. The best to do here is to scale a single instance of JIRA.
Refer to https://confluence.atlassian.com/display/JIRA/Is+Clustering+or+Load+Balancing+JIRA+Possible for Atlassian's stance on it.
You can cluster the database. You can cluster the file system. However you can't cluster JIRA. Your best bet would be to put it on a server with A+B power and network (redundant) and all the other measures to ensure and reduce downtime. Install it on a virtual machine so if anything happens it can be quickly moved across to another virtual machine.
In terms of performance tuning, there's a lot to be done and in most cases a single instance will work. Consider putting nginx and other "frontends" in front for static caching too.
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