' Collation ' is the rule of how data is stored and compared. Case sensitivity is an aspect of character set settings. Other case-sensitive aspects are kana (Japanese script) and width (single-byte vs. double-byte length).
To set up a new confluence instance
For new confluence instances, we recommend that you use a case-sensitive character set in your confluence. This is also the default character set used by most database systems.
Note: After the database is configured as a case-sensitive character set, Confluence automatically converts the user name to lowercase characters before storing it in the database. For example, user name ' Joebloggs ', ' Joebloggs ' and ' Joebloggs ' are considered to be the same user name in confluence.
Consolidate existing confluence to different databases
The default confluence configuration uses a case-sensitive character set. This is also the default character set for database creation. If you are using this character set to configure to a new database, we recommend that you also use case sensitive characters in the new database. If you are using a non-case-sensitive character set in a new database, but your old confluence instance uses a case-sensitive character set, you might encounter some problems importing it (for example, importing through XML).
Https://www.cwiki.us/display/CONFLUENCEWIKI/Migrating+to+Another+Database
Confluence 6 Database consolidation about your database case-sensitive issues