<p>I would choose a consistent approach across the entire environment. Both solutions work fine and will remain compatible with most applications. There is a difference in manageability, though.</p>
<p>I go with the short name as the HOSTNAME setting, and set the FQDN as the first column in <code>/etc/hosts</code> for the server’s IP, followed by the short name.</p>
<p>I have not encountered many software packages that enforce or display a preference between the two. I find the short name to be cleaner for some applications, specifically logging. Maybe I’ve been unlucky in seeing internal domains like <code>server.northside.chicago.rizzomanufacturing.com</code>. Who wants to see that in the logs or a <em>shell prompt</em>?</p>
<p>Sometimes, I’m involved in company acquisitions or restructuring where internal domains and/or subdomains change. I like using the short hostname in these cases because logging, kickstarts, printing, systems monitoring, etc. do not need full reconfiguration to account for the new domain names.</p>
<p>A typical RHEL/CentOS server setup for a server named “rizzo” with internal domain “<a href="http://ifp.com">ifp.com</a>”, would look like:</p>
<pre><code class="lang-auto">/etc/sysconfig/network:
HOSTNAME=rizzo
...
</code></pre>
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<li></li>
</ul>
<pre><code class="lang-auto">/etc/hosts:
127.0.0.1 localhost localhost.localdomain localhost4 localhost4.localdomain4
::1 localhost localhost.localdomain localhost6 localhost6.localdomain6
172.16.100.13 rizzo.ifp.com rizzo
</code></pre>
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</ul>
<pre><code class="lang-auto">[root@rizzo ~]# hostname
rizzo
</code></pre>
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<li></li>
</ul>
<pre><code class="lang-auto">/var/log/messages snippet:
Dec 15 10:10:13 rizzo proftpd[19675]: 172.16.100.13 (::ffff:206.15.236.182[::ffff:206.15.236.182]) - Preparing to
chroot to directory '/app/upload/GREEK'
Dec 15 10:10:51 rizzo proftpd[20660]: 172.16.100.13 (::ffff:12.28.170.2[::ffff:12.28.170.2]) - FTP session opened.
Dec 15 10:10:51 rizzo proftpd[20660]: 172.16.100.13 (::ffff:12.28.170.2[::ffff:12.28.170.2]) - Preparing to chroot
to directory '/app/upload/ftp/SRRID'
</code></pre>