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Our environment is setup in the same manner as Jim described above. This seems to be the most common approach.
I’m wondering if anyone is utilizing a DEVELOPMENT and a TEST environment. This would give a total of three environments (development, test, prod). Since our development work will sometimes impact our users testing/training tasks, we occasionally think about adding a third environment just for development. However, the management involved with supporting this type of environment seems excessive. An additional license would not be needed if it could be “merged” into the existing environment but creative use of naming conventions and softlinks would need to be utilized.