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For big production stuff always on different machines as then there is no CPU or memory contention under load. For smaller stuff I just put it all on the same box as it's cheaper.
different server for mysql is normally much better performance, easier for maintenance and backup.
In terms of latency and easiness, having them on the same server generally wins. Backups may depend on how you do them, but I think it's largely the same regardless, for the majority of cases.
Splitting up the two is mostly beneficial when:
I'd generally go with the two on the same server unless there's specifically a reason not to. You can always split up the application/DB at a later point in time. Same server has a number of benefits:
DBaaS is a bit different. I've personally felt that if you're comfortable with DBA, it's usually better to manage your own as you get much more flexibility. However, if being a DBA scares you, or you have relatively basic needs, it's probably better to outsource it. Obviously DBaaS is going to be easier than self setup. It also forces you to have a split DB/application setup as well.