When IBM developed Websphere for the 1996 Atlanta Olympics, they wanted a mainframe, but you know, web stuff. The model was doomed from the start, as they designed the JVM to run as a process.
Sun attempted tried to get deeper kernel support for the JVM with Solaris, but ultimately just ended up developing the precursor to LXC Containers called Solaris Zones.
What we have today with containers is pretty awesome but it was definitely a bumpy road to figure it all out.