I can certainly see a lot of benefits with this. We host for some of our customers, and this would allow us to isolate each customer completely from each other.

I can certainly see a lot of benefits with this. We host for some of our customers, and this would allow us to isolate each customer completely from each other. That is worth a lot when they store sensetive data in the application. Seperate VMs would as well, but it's not really feasible to run a full Windows Server for each customer.