Why is it not advisable to have the database and web server on the same machine?

Question

Listening to Scott Hanselman\'s interview with the Stack Overflow team (part 1 and 2), he was adamant that the SQL server and application server should be on separate machin

Answer 1

Security is a major concern. Ideally your database server should be sitting behind a firewall with only the ports required to perform data access opened. Your web application should be connecting to the database server with a SQL account that has just enough rights for the application to function and no more. For example you should remove rights that permit dropping of objects and most certainly you shouldn't be connecting using accounts such as 'sa'.

In the event that you lose the web server to a hijack (i.e. a full blown privilege escalation to administrator rights), the worst case scenario is that your application's database may be compromised but not the whole database server (as would be the case if the database server and web server were the same machine). If you've encrypted your database connection strings and the hacker isn't savvy enough to decrypt them then all you've lost is the web server.