Each program needs separation. Better computer security by not installing multiple programs on one system. Most out-of-the-box software assumes it is the only program running on a computer. Thus, each piece of software is installed on a separate computer.
Each computer is hardly using its resources. Each computer uses power ($1k/year) and rack space/cooling. The more computers you have the more hardware there is to possibly fail.
One computer pretends to be multiple computers.
Saves on power and space Easy to make use of the cloud Simplifies many configuration tasks Eliminates many sources of hardware failure Saves money
More computers on one box mean more can go wrong at once Learning curve Initial investment to get to the cost savings