well, in IT environment, sometimes we think it is better to cut costs , put everything on 1 server , hoping it will last for few hundred years down the road. However, sometimes the situation called for the separation of app tier, web tier, report server and database server .
The below image clearly tells why we need to think before placing the things on a server itself and the lesson of optimising database stored proc to run so that they will not incur
expensive database locks which will and can bring an entire server down.