The server itself is running nothing but the hypervisor. I have a few VMs running on it that makes it easy provision isolated environments. Additionally, it’s made it easy to snapshot a VM before performing maintenance in case I need to roll back. The containers provide isolation from the environment itself in the event of a service gone awry.
Coming from cloud environments where everything is a VM, I’m not sure what issues you’re referring to. The performance penalty is almost non-existent while the benefits are plenty.