We have a server running single instance of
SQL SERVER in production environment.
We are planning to create another Instance of
SQL SERVER in same server.
My question do we have to buy a new license or the existing license is good enough ?
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You can install as many instances of SQL Server as you like on a server, up to 50. The licensing is by the server, not by the instance (it used to be, once upon a time) so you have some freedom to do so.
The real question I would counter with is: Do you need another instance? Most people don't.