Upgrading two CRM orgs to one server

I am upgrading CRM 2011 to CRM 2013 for two organizations (CRMTEST and CRMPROD).  The plan is to upgrade each org to newer CRM versions to get to Dynamics 365 (so CRM 2011 to CRM 2013 to CRM 2015 to CRM 2016 to Dynamics 365)

My question is: we have built one CRM server to Dynamics 365 specs and one SQL Server built to Dynamics 365 requirements.  Is it recommended to have separate servers for  the CRMTEST org and CRMPROD org?  Given our current VMs, we would need to upgrade to a single set of servers, with CRMTEST and CRMPROD on the same Dynamics 365 servers.

The current CRM 2011 environments have separate servers for CRMTEST and CRMPROD.  What could be the problems with both TEST and PROD on the same servers?  For example, could this cause issues with refreshing CRMTEST with CRMPROD?

Thanks
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apollo7Asked:
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Feridun KadirPrincipal ConsultantCommented:
There is no general recommendation that says you should have separate servers for more than one organization. It is  your choice. You can successfully have multiple organizations in one CRM deployment (one SQL server and one CRM server). Reasons for having a server per organization include: performance, the need for separate administration/management by different people, completely isolating development.
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apollo7Author Commented:
I am used to having separate environments for Dev, Test and Production.  This allows work in Dev to be promoted to Test and then promoted to Production after testing is approved. Will this process be possible with  Dev, Test and Prod on the same app server (on-premise, full server install)?

Also, could having the orgs on the same app and database server cause any problems with SSRS reports?  

I am trying to avoid having another set of VMs spun up, the project plan calls for one Dynamics 365 environment.

Thanks
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Feridun KadirPrincipal ConsultantCommented:
I'm reasonably sure that having dev, test and prod organizations on the same deployment (i.e. same SQL Server) is fine unless you are doing anything that works at the server level, but I can't think what they might be. Generally, customizations, plugins etc apply to an organization.

You could start out with one deployment and then if for some reason it doesn't work out you can make a case for additional environments.

SSRS reports should be ok. Multiple organizations can share an SSRS server.
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apollo7Author Commented:
Thanks, Feridun, I appreciate your help.
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