Dedicated hosting is an Internet hosting option in which an organization leases an entire server, which is often housed in a data center. The host not only provides the server equipment, but may also provide administration and other services. This is considered a more flexible arrangement for the client because unlike in shared server arrangements, it gives the organization total control over the server, its software and security systems. In some cases, a dedicated server can be less expensive.
Dedicated hosting is also known as a dedicated server or managed hosting service.
Techopedia explains Dedicated Hosting
In the case of dedicated hosting, server administration is often provided by the hosting organization as an add-on service. The dedicated hosting providers will have a service level agreement with the client that outlines all the service guarantees as needed. Server hardware is usually owned by the provider and in certain cases, it also provides support to operating systems, software applications and security systems.
The advantages of dedicated hosting include:
More reliability compared to shared hosting
Better performance compared to when resources are shared
A custom firewall, which can help in enforcing the access control policy
More flexibility in terms of adding software and changing server configurations
A unique and dedicated IP address
A greater degree of security that can be customized according to a client's needs
The main drawback to dedicated hosting is that it can be a major investment.