It kind of does: Jave EE was all about having single Java Application Servers running on each host, and deploying applications/services on top. In practice every service was built by the same company though, so focused moved toward shared libraries in containers and things like that: Search for OSGI.

The issue is both that the security concerns were way softer than they are today, and that all your dependencies better be deplorable in a JVM too. Modern ideas of having databases deployed along with the services that need them don't work quite as well as just using OS level virtualization. That said many a crufry old company still deploys hundreds of services to production by loading .war files into a cluster of servers running JBoss or WebLogic.