Multisite Separate Installs

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Hi, I am new to wordpress and wanted to understand the best way to manage a multisite which would would have the same theme/plugins for different companies that will have different 50-100 users each. I keep reading about others recommending a separate install if there are different companies/clients to have a separated wp\_users table and for security reasons.

1. When others mean a separate install, does this mean wordpress being installed on a different host/server each time?
2. How does one manage lets say 500 different companies with 50-100 users each with separate installs? Someone once mentioned CPanel Softaculus?

Any advice would be appreciated.

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