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This is an age-old question of which there is no right or wrong answer. If you put them on one server, you will only have to manage one server, which makes the life of your SysAdmin much easier. However, that server needs to have adequate resources (disk, memory, CPU) so that activity on one database instance does not adversely impact the other instance. Another thing to keep in mind is the cost-benefit ratio. Many installations are moving away from high-end Unix servers to lower cost Linux servers, even though it means more servers. For instance, why spend $50K on a Unix server when two Linux servers that cost $10K each (total $20K) will do the job? I see a lot of Linux deployments for this cost reason alone. That being said, some of your Unix vendors are coming out with low-cost alternatives. For instance, the new Sun T2000 servers have a price point comparable to Linux counterparts.
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