At first we must understand
What is SAP HANA Appliance ?
Definition: "SAP HANA appliance": "SAP HANA appliance" means a single SAP HANA node server or a scale-out cluster of multiple server nodes where at least one SAP HANA database (and associated compnents) resides.
This described scenario has also been called Multiple Components One System (MCOS) in regards to other SAP applications. The term "SAP HANA system" is used interchangeably with the term "SAP HANA Database and associated components".
In this context, a new term is introduced: ""Multi-SID" which refers same as multiple databases on one SAP HANA appliance.
Important: When considering the support status, the items in the "special considerations" section which follows must be taken into account.
SAP does not support running multiple SAP HANA databases on a single production SAP HANA appliance.
SAP does support running multiple SAP HANA databases on a single non-production (DEV, QA, test, etc) single-node SAP HANA appliance. While SAP HANA is delivered by the hardware partners with one DB installed, additional DBs can be installed by an SAP consultant who has access to SAP internal documentation for this purpose.
Related: An Overview of SAP HANA Database Architecture
SAP does support multiple SAP HANA databases on a distributed (multi-node) non-production SAP HANA appliance. While SAP HANA is delivered by the hardware partners with one DB installed, additional DBs can be installed by an SAP consultant who has access to SAP internal documentation for this purpose.
To be clear, running multiple SAP HANA databases is supported for all types of non-production SAP HANA appliances, if the additional DBs are installed by an SAP consultant.
Please ensure that your SAP HANA appliance is sized appropriately for any additional DBs that you wish to deploy. We recommend working closely with your hardware partner to ensure adequate capacity planning.
Please be aware that running multiple DBs on one SAP HANA system may impact performance of various types of operations, as contention for memory resources may occur. This performance impact may appear despite adequate sizing. Note this multiple DB one SAP HANA configuration is only available for non-production SAP HANA systems, where consistently fast performance is generally not as critically important as it is with production systems.
If performance issues arise when running multiple DBs on one SAP HANA system, stop all but one of the DBs and see if the performance issue persists. SAP support will address the performance issue only if it can be shown to exist when only one DB is running on the SAP HANA system.
Read Here for More SAP HANA Tutorials.