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I am planning to set up a server hosting multiple websites on a single high-end Linux server on Virtualization-enabled Hardware using a LAMP stack.

I have decided to go with Centos 6.2 as a KVM host with two Virtual Machines running on top of it, of similar Centos Version. One to act a Web Server and other act as a MySQL database server. I plan to use Joomla CMS for the websites.

Can any one guide me, is it a good choice or are there any other better tools I can use?

Also, Is it best practice to put all websites in a single database or individual databases.

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If you know how to handle KVM then there is no harm in going that route with respect to virtualization. If you are not well versed with virtualization techniques then maybe you should host everything on host itself.

Next you need to ensure that joomla is the best suit for your needs. If you are just going to serve blogs then I would recommend you to go with wordpress. Also check out and compare your needs with drupal against joomla.

About databases, if I were you I would serve them out if individual databases. This helps in better management and much better and cleaner removal of a websites. Imagine all the data from all of the websites you hosted stuffed in a single database. Nightmare!

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