Dedicated server hosting is when you rent an entire server for your use from a web server provider. You do not have anyone to share it with. The whole server is yours and yours alone. The dedicated hosting approach in putting up a website allows you to maintain a very big website without the concern of employing people to support your hardware.
Dedicated web servers allow you to customize your server as much as you want. You even get technical support from your provider. Dedicated servers are very expensive. Unless your website is required to accommodate high amount of traffic and it requires complicated customized options, you should not rent one.
One of the advantages of getting dedicated server hosting is you do not purchase your own equipment. You do not even have to hire people to support and maintain your hardware. You can simply choose a package based on your own needs with regards to disk space and data transfer rates. If there is a need to upgrade your server, you just notify your provider and they can arrange it for you. It is both easy and cost-effective.
However, a disadvantage of dedicated server hosting compared to co-location hosting is that you do not own your server. You only own the data that is currently inside it. You have to give full rights to your provider for them to be able to support and maintain your server. It is expensive because you do not just rent the hosting service from your provider; you rent the use of the server as well. You cannot just get your server and switch providers as you can when you choose co-location hosting.
When choosing between dedication or co-location server hosting you must consider the costs. You have to justify the business need why you need either one. You also have to consider the confidentiality of the data you are storing in the server. Remember, in dedicated hosting full rights and accesses are granted to your web hosting provider.
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