Hosting your web sites on your own dedicated server may seem a little expensive in comparison to shared web hosting, but the end result is more advantageous. Shared web hosting, no matter how well managed, cannot be 100% reliable and stable. However if you have your own dedicated server you can manage to avoid most of the variables affecting the reliability and stability of a server, commonly experienced by shared hosting accounts; variables such as: overload, bad codes and scripts from other users (especially beginners); and, too many applications and components uploaded, and so on.
On a dedicated server you will install only software and applications you want to use, while on a shared hosting server you will find a host of other software and applications installed for other users. If a hardware component fails, the provider is responsible for replacing it at no cost. The other advantage of dedicated service is that it is custom-designed for each customer. Advanced hosting providers will allow you select specific CPU speeds, disk space requirements and other hardware components. Such automated server specification processes maximize your return-on-investment by ensuring that you only select the hardware you need.
By the very nature of the account, a dedicated server: reduces your dependency on the web host; and bypasses time delays and possible expenses incurred from these. With dedicated server hosting you can provide instant support to your own clients whenever required, which is not possible if you are on a shared server. A reliable, and fast support service is vital for your own business growth just like the stability and reliability you wish for your own website. In business, reliability is reflected through word-of-mouth as one of the most effective promotional activities.
You can manage your server remotely, and have the ability to install software applications and maintain complete control of all you sites content. A dedicated server allows for faster access to your information and provides you with greater flexibility to install advanced web, database, e-commerce, and other applications. If you use your server to host multiple sites for your clients they become easier to manage, allowing you to share resources amongst their sites.
Shared hosting is not as secure as dedicated hosting. If the security of another site on the server is breached, your site could be affected.
A dedicated server can provide a firewall for which you control all password access. If you store highly sensitive information on your server, this increased security will be a high priority.
Shared hosting gives you a chance to test the waters when you're just starting out. But as your business grows and your site evolves to include more complicated features, such as e-commerce functions, a dedicated host makes more sense.
Because of these advantages, dedicated servers can be considered a superior service allowing you access to more reliable avenues of content distribution and control over your hosting environment. With more control, however, comes more responsibility. Customers who select dedicated hosting solutions will require a certain amount of competency in IT and server administration issues in order to properly maintain the server. This will mean a greater investment of time and human resources than what a "virtual" or "shared" server requires. Furthermore, dedicated servers will require a much larger financial investment.
Dedicated servers are usually offered for a single inclusive monthly fee to Web developers, e-commerce operators and content distributors. The cost can range from between $99 to $2,500 per month, depending on budget, and the level of customer care and technical support required.
Dedicated servers are therefore considered an entry-level hosting solution for the small to medium sized enterprises.