A dedicated server is a physical machine that can only be used by a single person and nobody else. This can stay in your own company or some third party hosting data center. A shared server is one where you share the server with hundreds of users.

Which web hosting solution you must follow totally depends on your budget first, then the amount of security required.

A dedicated server is yours, and you have the exclusive right to use this " box ". So you have to pay a higher price for a dedicated server as compared to a server where you are effectively divided by dividing the cost with hundreds of users.

A dedicated server web hosting becomes the preferred solution if you're planning to use the whole box, or at least a substantial part of it. That way you can justify it. Typically, a dedicated server is implemented when the amount of space divided paid starts to cost roughly the same as on a server split.

If the applications being hosted on a server are business critical content or some level of security as required in the case of online commerce, you must have your own dedicated server as well you can control who is accessing your server . Therefore, you can explore all parts of this machine instead of having several unknown users sharing the server with you.

You may also prefer a dedicated server, simply because the image of your company might be affected when you come to discover that their shared server is hosting a pornographic website or any other inappropriate business. Obviously, you do not want your company to be associated with these companies.

For most companies, the placement of a server is too expensive, and the company must be big enough to point you already have employees with specialized training in IT. Companies that consider using a placement of servers are probably spending too much money on maintaining their computer networks, and are looking for a way to save costs in a settlement that both can offer a high performance.

For most companies except for very small, the hosting of a dedicated server in a specialized center provides a perfect combination of business performance and financial limitations. Managing a dedicated server, coupled with a good deal for the quality of services, will provide security, high speed internet connectivity and flexibility for a fraction of the cost of placing a central server.

Author's Bio: 

Jack Palmer likes to keep himself updated about various web hosting technologies such as "Dedicated Hosting", "Cloud Server Hosting" etc. In addition, he also likes to share his knowledge about new computing and hosting technologies amongst people through the "Web Server Hosting Knowledge base".