Database/Instance VS Schema

Want to use Oracle DB as the database for virtue hosting for mutiple web applications.
Option One: Create one database (or Instance) with multiple shema(s), with each Schema for a web application to access.
Option Two: Each web application has its own database (or Instance)
The Database will be located in the same machine. In general which option is more feasible in terms of maintenance and speed?
Thanks.
Scott
It appears to me the second option is better, but the memory may become an issue, for so many database instance will be loaded to the RAM. The first option may save some memory. But each shema will be hit by many users (such as hundreds). I wonder if use of the schema is feasible.

In case of downtime of database all your web application are having downtime and each application are on different database in that case only respective application would be down. so, it would be better to keep each webapplication on different database as per the maintenance perspective.
If you are expecting hit from "hundreds" users then better invest more memory. at least 500 mb to 1GB SGA per DB.

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