In the web hosting business, the dedicated servers, also referred to as dedicated hosting, are the Rolls Royce. A dedicated server is a powerful computer that is used solely as a network server; a single computer in a network reserved for network needs. It refers to the rental and exclusive use of a computer and it provides services for only one account or domain name. It is therefore solely for use by one organization, and is leased and stored in the data centre of the host company. Read Wikipedia's article about dedicated hosting for more information.

A dedicated server includes an operating system (mostly some variants of Linux or Windows) a web server, related software (such as a SQL server, Control Panel and much more) and connection to the Internet, all housed in the web hosting company's data centers. Dedicated server hosting is typically required for a web site or a group of related company sites that develop a substantial amount of traffic. The server can usually be configured and operated remotely from the host company while still allowing for client customization. A dedicated server can be assigned to function only as a resource server and cannot be used as a client. It is important to note that the server is owned by the web host and you do not have physical access to it.

Dedicated web hosting is beneficial while developing a complex business or a high-end e-commerce site as you will need more space and security - a web server dedicated to your business. It is purchased by a company when they want more control of their server. They purchase or rent the hardware from the hosting company who then normally support and manage it. Internet connectivity is provided to the server, in many cases over 10 or 100 Mb/s Ethernet. Dedicated servers are most often housed in datacenters, similar to co-location facilities, providing redundant power sources and HVAC systems. The financial benefit with cheap dedicated server hosting is huge: large initial investments are not needed.