While which type of server you use largely depends on the scenario, there are several advantages of using a smaller rack server over a blade server:
Power – Rack servers are typically built with all the needed components to operate as a stand-alone system. They can be very powerful and are used to run high end applications.
Convenience – Having the ability to easily mount a server within a rack is convenient and saves a lot of space, especially when compared to a traditional tower style server.
Cooling – Cooling a rack server is easier than most others. They are usually equipped with internal fans and placing them in a rack increases airflow.
Ideal for Lower Quantity – Rack servers are best suited when you need more than one server (but less than about 10) because they don’t require a massive chassis.