With Dedicated hosting, you have full control of the physical server, and complete access to all its resources. With Dedicated Server hosting, since you aren't sharing resources with other customers, you have access to more computing power than you do with other basic shared hosting solutions.
This is an OPEX based infra as a service product where customers need not to buy an HW upfront to start the operations. Plus it comes with host of other packaged services!
Business organizations that are growing rapidly will gradually have to replace their shared hosting scheme and avail a dedicated server for better and smooth functioning. If the number of users needing access to the cloud server is fast increasing, the shared server may not be enough to serve the requirements of the multitude of users accessing the server at the same time.
In a shared server environment, multiple customers use the same server and it’s resources. So, you need to ascertain how much value you lay on the information that you have. How much loss does your company stand on making for an hour’s downtime? If the answer to both the questions is pretty high, then dedicated server solution is the need of the hour.
With a dedicated server comes higher computing power and greater bandwidth which effectively translates to better response from the server even during peak time when the number of users accessing the server is maximum. For a website, it is equally important that the page loads as fast as it possibly can because slower response is likely to reduce the traffic considerably since viewers with slow internet connection will not have the patience to wait for the page to load.
So it is fair enough to say that dedicated servers are a must for every organization who is either considering upscaling or is in the process of doing so. Because, even though virtual servers offer scalability and customizability privileges, it can never offer the computing power, bandwidth or security that a dedicated server can provide.