Hi Richard, interesting idea! We use H2 for other projects (not Magnolia) quite a lot so could be a good candidate for Magnolia. I have tried [url=https://wiki.magnolia-cms.com/display/WIKI/H2+database+configuration]your example Magnolia Jackrabbit H2 configuration file[/url] on one of our Magnolia 5.3 projects and it seems to run fine locally. I measured startup and initialisation time (clean install) and compared it to Derby and I see no difference. But when actually using it there may very well be a difference, I don't know. We don't have automated load & performance tests so far. If we do I will let you know.
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