Siebel 7.8 -- 8 upgrade process and environments

Hi,
I'm new to Siebel Upgrade and I'm trying to figure out the upgrade process searching on the bookshelf and white papers (best practices).
I still can't comprehend the upgrade architecture and where the new Siebel sw (for ex. Siebel 8 in my case) has to be installed:
Let's suppose to have 3 starting environments: development (7.8), test/production replication (7.8) and production (7.8).
According to the bookshelf there's an initial phase (and this is valid for development environment too) called "upgrade infrastructure" in which they talk about "upgrading" the server, gateway, SWSE, etc. and about installing Siebel software.
For example at pag. 26 in Upgrade Guide version 8.1, during the development environment upgrade explanation, you can read:
"...Upgrade the Gateway Name Server, Siebel Servers, and Siebel Web Server Extension (SWSE).
For information upgrading these Siebel Enterprise components, see Siebel Installation Guide for the operating system you are using.
3 - Install the Siebel Database Server files on the Siebel Server you will use to perform the upgrade.
You only need to install the database server files for the database type that you are upgrading.
4 Install language packs for your currently deployed languages and any new languages...."
Now, starting with a 7.8 development environment, what do they mean: Do I need to install on the same development box (where the 7.8 already resides) also a new 8 development environment (server, gateway, etc.) in order to execute the development upgrade process?
And then, should I install another new 8 environment on the Production/Test machine, in order to perform the production/test environment?
Finally, should I use the test machine (once all is tested as the new production environment?
Probably I'm a bit confused. Can you help me?
Thank you,
Best Regards

Your upgrade process depends on how you want to carry out.
For a Inplace upgrade, whicih means you will be using the existing hardware where earlier version exists, you need to uninstall the earlier version install the new version and the kick of your siebel database upgrade.
The other process is where you obtain new hardware, in this case install new version of siebel software as per requirements and then start your siebel database upgrade. For this you may need to replicate your existing siebel database.
This process applies to all the environments.

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