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CRM Development, multiple companies

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Hi,

I am CRM Developer that is working with different companies.  I would like to know how to approach the situation with multiple companies, different crm instances on one server. Is it better to have different servers for each organization?  Or can I have them all on the same server for developing?  I currently have a backup of a SQL server and a CRM server for a large client with 12GB of data in the backups.  I have two organizations I have been developing on one server.  

Please advise if anyone has any insights.


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