This configuration technically works, however, it is not recommended for (at least) two reasons.
ACS is security central for your network. It stores all of your usernames and credentials at a very minimum. If this box has to be rebooted for an LMS issue, that could lock people out of your network. If there is a security compromise due to LMS, then all of your credentials are compomised as well. Likewise, LMS is your central configuration repository. If there is an ACS security problem, and an attacker gains control of the server, they would have access to device configurations.
The other reason has to do with the number of TCP ports used by each application. With both running on the same box, you may run out of free TCP ports. If this happens, then neither application would function.
We generally recommend your ACS server is a secured, isolated machine with minimal physical access. And while we have tested applications like HPOV NNM on the same server as LMS, we recommend you give it as much server resources as possible so that it can perform all of its tasks in the best way possible.
