What are some of the benefits of using multiple and separate instances of SQL Server?

What is the benefit of installing multiple SQL Server instances on a single server?

The Benefits of Instance Stacking Lower SQL licensing costs – you only have to pay for one license, and then even Standard Edition lets you install dozens of instances on the same Windows base. Lower Windows licensing costs – you only have to pay for one Windows.

Can you have multiple instances of SQL Server?

Yes, we can use multiple instance of SQL Server of same machine/server. All instances of the database engine other than the default instance are identified by an instance name specified during installation of the instance.

Can we create multiple instances of SQL Server on the same machine?

You can install multiple instances of SQL Server, or install SQL Server on a computer where earlier SQL Server versions are already installed. The following SQL Server-related items are compatible with the installation of multiple instances on the same computer: Database Engine.

How many instances are available in SQL differentiate between them?

In a SQL server, there are two types of instances; they are the default and named. There is one default instance but, multiple named instances in an SQL server instance. If a certain connection request specified only the name of the computer, then that connection is for the default instance.