In Dev Environment we have done single machine installation for our website which is build on SDL web8.1.1 and DXA 1.6. So everything is installed/deployed on this single machine along with website and all Content Delivery services. Now we want to add Experience Optimization on top of it so can we do all required installation on same machine or its not possible at all ?

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Yes, you can do that; we also do that on some of our test environments.

You do have to ensure your machine has sufficient memory. Something like 16 GB.

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