Do we need Test and Development instances

I would like to know that apart from the production instance, Test and Development 2 instances are required or only one is sufficient. If required how it will be useful.

I depends on your change management philosophy.
In our organization, the Development instance can differ a great deal from production in terms of setups, patch levels, etc. The Test instance is meant to be as close to production as possible in terms of setups and freshness of data. Only when patches are demonstrated to have resolved a problem in Dev are they promoted to Test, and shortly afterward to Production, as long as testing continues to be successful.
This allows our users to train and play in the Test instance without wondering what wacky things the IS team might be doing, be cause we're doing our work primarily in Dev. ;-) In addition, if we have a problem in our production instance, we can have a high degree of confidence that we can replicate it in Test, with identical setups and data. If it is necessary to get more recent data to troubleshoot a production problem, we can quickly clone production to Test without impacting any project work underway in Dev.
In reality, you're likely to find that you'll be lucky if you can get away with running only 3 EBS instances. :-) I'm currently managing 10 instances, but that's a little unusual for us...it's usually more like 4-5.
Regards,
John P.

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