Having a dedicated server gives you high flexibility and a lot of options for your site.
Usually you have root/admin access to the server and you can manage and modify each aspect of the server behavior - software running, configuration, etc. So if your site needs more than any shared hosting plan can offer or if you have some special requirements - the dedicated server is the right choice for you.
When you are on a dedicated server, your site is the only one that uses the server resources. Also when on a dedicated server you have no restrictions on the number of websites that you can host, on the number of mailboxes. The whole CPU and memory is on your disposal. You can install whatever programs and software that you wish.
Some of the Main Reasons to have a Dedicated Server are:
- Security - Being on a dedicated server, you are on your own. You do not share the server with anybody else. Nobody has access to the server. So you can be sure that you data is safe. For example on a shared host in case of mis-configured server some other users on the server might be able to read your data. When on VPS, there is always a sysadmin that can read your data. When on dedicated - nobody is granted access to the server except you.
- CPU power - When on a shared hosting plan or a VPS you share the CPU, RAM and I/O resources with other users on the same server. As any other shared resources, there might be occasions in which a given user will take all the CPU and/or RAM and the server performance can suffer greatly, even a server can go down. The bad thing is that you cannot do anything about it. When on a dedicated, the CPU works only for your site. Yeah, your site can bring the server down too, but at least you have more control over the situation.
- Performance - As explained in the previous paragraph, when you are alone on the server all resources are allocated to your site. So a dedicated server performance cannot be compared to the performance of any other type of hosting plan.
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