Now, don't get me wrong, I think shared and virtual server hosting is great. I have a virtual hosting account with a provider, and a standard shared hosting account on another. I have also had access to a dedicated server numerous times. But what's all the fuss about dedicated servers?
Dedicated resources is a major reason. Not having to share any processing speed, any memory, hard drive capacity or network speed with anyone else (in other words, having it all entirely to yourself) sounds pretty good. Shared hosting accounts can sometimes go onto a server where there are hundreds if not thousands of other accounts. This isn't a bad thing, but if someone is abusing the service, everyone suffers. If you also wanted to run a special application or internet service, chances are you wont be able to. With a dedicated server, you can.
Your own IP address. For the uninitiated out there, an IP address is like your server's internet phone number. It is what other computers use to "call” your server and talk to it. If you wish to run an ecommerce store on your website, you will need an SSL (Secure Sockets Layer - a layer of encryption for protecting your personal and credit card details when making a purchase online) certificate. But personalised (not shared!) SSL certificates require an IP address. Sure, it is possible to get an IP address for SSL on a shared hosting account, but usually it's quicker and easier to do this on a dedicated server.
Dedicated servers normally cost a bit more than a shared hosting or virtual server account, but the benefits you receive in return far outweigh any disadvantages. You only have to decide if a dedicated server is really suitable for what you need (don't buy it unless you need to!) and/or if you can afford to keep it. Make sure your dedicated server comes with a flexible contract, or short contract that only lasts a few months at a time. This allows you to take advantage of any discounts and price drops that your provider introduces that you may not be entitled to on your current contract. The downside to this situation is having to remotely back up all your data in the event that you decide to move your business elsewhere. Talk to your provider about flexibility and their ability to accommodate your changing needs over time.
But if you play it well, a dedicated server will be the best internet purchase you could make. Or it could be a waste. Stick by these few simple guidelines to decide if you need one before rushing in. When you are ready, it'll be there waiting to serve you.
Martin Coleman is a freelance writer and computer programmer. More information about his services and other articles can be found at http://www.martincoleman.com.