Generally speaking, yes, this will work. Permissions will not be carried over. There are many, many more complexities and caveats here, so I'd recommend you read my article here to get a better understanding.
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It works,we just did it, just pace your self, we sometimes migrated to many vms at once and overloaded the hosts before everything could balance correctly. Out of 800ish vms we only had 1 outage happen because of a weird file locking issue. The worst part is copying the alarms, permissions, and folders over and making sure they match.
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This is the one that should be marked as the correct answer. You'll also lose some historical data. I'd just migrate it if you can-- but building a new one works as well as long as you're good with all the attendant headaches that go with it.
Thank you guys for your prompt response. I read the migration guide. it is very helpful.