3GPP specification depicts many different interfaces such as S6a, Sh between different network nodes and HSS. This is a logical separation of nodes. It is up to vendors and operators requirements how they want to manage their HSS components.
If their hardware resources are sufficient and can serve all the interfaces in a single node then operator would be go through this way. If existing hardware is not enough to handle million of sessions through different interfaces at HSS then either operator would ask vendor to split the HSS or it'll go to buy new hardware.