I'm using the Backup-SPFarm PowerShell cmdlet to backup our SP 2010 Server farm and all of its associated databases. We want to test our restore process, and I'm wondering if it's possible to restore the farm databases (using the Backup-SPFarm backup files) to the same SQL Server instance, but with all different database names, so that our restoration test doesn't conflict with or overwrite the live farm databases. If not, we can stand up another instance of SQL Server for our restoration testing.
I dont do this, even you can rename the DB while restoring the from backup but still you are on your production server.
Just think, more pressure on the SQL Server, resource fighting, and just a single mistake blow up your production Data.
I would go for separate SQL server for this test.