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What kind of performance issues do you see running two instances of Oracle on the same server for two different apps?
Any time you run more than one instance on a single server, you need to be mindful of server resources. So you need to ensure you have enough CPU, memory, and disk resources to handle both instances. The CPU's need to be fast enough to handle all computations both instances require. Also, your Oracle instance should not consume all of the physical memory. If your app requires a larger buffer cache, that will require more memory for the instance that is not available to the second instance, so be careful any time you increase the instance's memory footprint. Finally, it is all too common to see one application's disk hot spots collide with the other instance's disk hotspots. So make sure you have enough disk spindles so that one app's disk I/O activity does not affect the other.