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Just changing the name of the server is not a problem, as long as the SQL server is not on the same machine (as Microsoft do not support renaming SQL servers, I believe.)
However, if they are intending to move ePO to a new server with a different name, then this will cause a problem. A safer approach would be to rename the existing ePO server to the name that the new server will have, make sure that all the clients pick up the name change (by getting a new sitelist from the server) and then move the ePO installation to the new server.
Thank you, so what would be the procedures to change existing server hostname ?
Also can you advise steps to migrate to a new server ?
Changing the hostname is done as normal - ePO will pick up the new name when the machine restarts. Just make sure you don't change the machine's name and IP address at the same time: otherwise the clients won't be able to find the server.
Moving ePO to a new server is described as part of the disaster recovery document - please see KB 66616 for more detail.