Either their app is that shitty (and it's Kronos, so that's a possibility), their support personnel are that incompetent (and it's Kronos so, that's a possibility), or our application team is that lame-brained (and it's us, so that's a possibility).
Told 'em to ask again and specify virtual server specs. When that comes back unchanged, I think the best course of action will be to stand it up anyway, show off how crappy performance is, and then rebuild it into two separate servers with 1 or 2 cores each.