Thanks everyone for the replies. There are several reasons for separating client data from the OS drive. One is to prevent system crashes because the drive is full. Another is to accommodate how we have our back operations structured.
During testing, I was importing a cPanel account, which failed because the compressed file was much smaller than the space needed to accommodate the full account after importing.
We are using VMs in a cloud hosting environment. By separating the data, we can also choose the best mix of drives to achieve speed/price balance.
We are currently planning to place the following on a separate drive(s):
/var/orchd/importer
/var/www
/var/local/enhance/email/mailboxes
/var/lib/mysql
Backup Location is chosen when adding the app and must be a file system that supports hard links