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My development server is having MS CRM 2013 Onpremises installed. It is possible to install MS CRM 2016 Onpremises on the same server?

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No, this isn't possible. You can only share the backing SQL Server by creating Named Instances.

You could use a CRM 2016 Online instance as an alternative, but it would introduce additional costs which is not desirable for a development environment.
The same applies for an installation to an Azure VM.

Filburt
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