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Planning and Upgrades

We have an internal debate going on and I'd like to hear how other shops do things.
We have several HP-UX servers running oracle 8-10G. The way it is setup currently is that each server has a single oracle rdbms version on it; a single install into 1 $ORACLE_HOME with multiple databases (up to 10 or so). Nothing unusual so far i wouldn't imagine.

Inevitably there are desires to upgrade some of the 9.2 databases to 10G. In other words, an oracle install with 7 databases and only 1 needs upgrading.
The way it is currently architected i can see only a few options,
1) upgrade ALL the databases that share the same oracle engine/version/home,
2) move the single db to a server running 10G,
3) install multiple versions (9.x, 10.x) of oracle on a single server.
Am i missing something?

I am in charge of the Data Warehouse environment, the only place currently running 10G, and this server is marked to be the melting ground for any other db requiring upgrade to 10G which of course i am vehimately resisting. This was to remain a dedicated DSS server.

our dba is against installing multiple Oracle versions on a single machine - claiming it will "eat up" too many resources (cpu, memory) and cause administrative problems. I'm still waiting to hear back from him about specific metrics.

I guess my questions are, how do other shops handle such scenarios? Is it a valid concern about not wanting to install multiple ora-versions on a single machine (i run 10G, 11 on my desktop without major problems so am having a hard time seeing how a 6 cpu unix server couldn't handle it)? I'm under the assumption the primary additional requirements are the min. specs (cpu, memory, etc) to run the software, which i am not dismissing as a concern. Do you normally upgrade all the instances at once? Are there any other considerations to take into account?

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