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

Wow, No one brings up the fact that if you actually buy SQL server at 5k bucks, you might want to use it for more than your web application. If your using express, maybe you don't care. I see SQL servers run Databases for 20 to 30 applicaitions, so putting it on the webserver would not be smart.

Secondly, depends on whom the server is for. I do work for financial companies and the govt. So we use a crazy pain in the arse approach of using only sprocs and limiting ports from webserver to SQL. So if the web app gets hacked. The only thing the hacker can do is call sprocs as the user account on the webserver is locked down to only see/call sprocs on the DB. So now the hacker has to figure out how to get into the DB. If its on the web server well its kind of easy to get to.