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I have two databases. One I'd like to set up in an availability group between two servers (two instances, one on each server). The database is not huge and I'm not expecting it to grow exponentially. We'd like to utilize local storage for this database for performance reasons as it is a high usage OLTP database.

The second database would be on additional instances across the same two servers but I need to utilize shared storage because we are expecting this database to grow exponentially. Our SAN is not designed for high I/Os and this database does not need the I/Os. I'd like to use SQL Failover Clustering and keep this database on the SAN and take advantage of some High Availability. Both of these databases need High Availability.

Is it possible to have two SQL instances on the same windows failover cluster with one instance using always on (no SQL failover cluster), and the second instance belonging to a SQL failover cluster?

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    You need more than one instance to make use of an Availability Group (AlwaysOn is just a general marketing term), and you need more than one instance for a failover cluster to make sense too. Instead of asking us about the implementation you think you want, why don't you step back and tell us about what you are actually trying to accomplish? HA? DR? Both? Do you have any idea about your RTO/RPO? What are your single points of failure? Shared storage, what else? – Aaron Bertrand Aug 30 '15 at 1:53

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