Currently our production server runs in system ruby. Passenger handles our rails apps.

Should I move to handling my entire ruby stuff using rvm? What advantage can rvm give me in a production environment? Please advise. I'm a beginner in handling servers. I would need to run one or more apps in the same big server box using passenger.

if I use passenger via rvm, should I install passenger gem for every ruby I install?

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rvm will allow you to use latest patch level of your ruby, this includes security patches - which is the main reason for switch

as for running multiple apps on one server the best solution is to use one instance of nginx as a proxy forwarding to unicorn or passenger standalone per app.

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