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2 different mobile app projects on 1 server

Hi There, I am new here. I wanted to know the upside and downside of hosting two different mobile applications on a single server. There are two different teams of developers working on each project.

What is the downside of creating 2 users on  a server for two apps? Is there any way, I can limit access of users to certain folders only?

In case I need to scale up the server, will both the apps enjoy the scaling?

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