Dedicated Hosting is in the simplest terms a server that is rented from a larger company. The main differences between dedicated hosting and shared hosting, or even VPS hosting is that the company is renting an entire server that is not shared with any other company.
The entire system is much more flexible that VPS or shared hosting and as such is a popular option for companies that need more than either of these options can provide. It will be up to the company to decide on the operating system and control panels of the server. The added advantage of this kind of hosting over actually buying server equipment outright, is that the facility that the server is placed in will often have support staff available, although for a slight monthly fee. This can reduce the overall running costs of a server, as all updates to hardware and software can be done there and then rather than trying to do it remotely.
In much the same way as a collocation server, the dedicated hosting servers are normally housed in data centers. The main differences being that the provider still owns the hardware of dedicated servers, whereas a collocation server is owned by each individual company. The problem with a collocation server is that all maintenance work will have to be carried out by the company that owns the server. A dedicated hosting server can have the added option of onsite support, allowing the company to have one less thing to worry about. The only disadvantage to dedicated hosting compared to collocation servers is the restrictions that will be put in place regarding the operating system. This will very much depend on the staff at the facility and what kind of familiarity they have with each different type of operating system. However, it is not often that a company will find a dedicated server centre that does not have someone experienced with most operating systems. Considering that most companies opt for open source operating systems, means that they are not only easily available but also often widely known.
Dedicated hosting is one of the best options a company can take short of buying their own server equipment. From the support that is available twenty-four hours a day, three hundred and sixty five days a year to some of the tightest security measures around, dedicated servers really do have it all. The other major advantage to dedicated servers hosting a company's site is that there are several bandwidth options available. This will allow a company to really decide how much traffic they wish to allow to a site and monitor what traffic actually makes it there. It is often seen that the big providers in the server game offer large amounts of bandwidth to their clients, even though much of it would be redundant. It is almost as if a company is preparing for that “what if situation”. In the end, the more bandwidth available, the better, but going completely overboard could be money badly spent.