What is a server? We got used to thinking that a server is a powerful machine placed in the provider's server room. Special programs are installed on this server enabling to correctly process requests from remote computers and for example, display web-sites.
Is that true? Half-and-half.
Beside traditional dedicated servers, there are virtual ones. One server contains several smaller servers. They exist virtually, but have the same functionality as usual dedicated servers at lower prices.
The dedicated server may be more powerful. And you won't be able to use the hardware of the virtual server. These are their differences

Dedicated Server Benefits

An ISPserver dedicated server is more than just a server, it is a fully managed solution designed to take your business to new levels.

In the web hosting business, the dedicated servers are the Rolls Royce. The dedicated server is a powerful computer that is used as a network server; in other words, a single computer reserved for network needs. It refers to the rental and exclusive use of a computer and it provides services for only one account or domain name. A dedicated server is intended for use by one organization, and is leased and stored in the data centre of the host company.

A dedicated server is beneficial for developing a complex business or a e-commerce sites as you will need more space and security - a web server dedicated to your business. It is purchased by the company when they want more control over their server. They purchase or rent the hardware from the hosting company who then normally support and manage it.