Dedicated web hosting is one of three primary web hosting methods. Other types of hosting include virtual hosting, sometimes called shared hosting, which is the most common web hosting method; and clustered web hosting which uses a group of servers that are integrated in order to increase performance and redundancy for a web hosting customer who has unique needs. There are definite advantages and disadvantages to the various web hosting methods. Dedicated web hosting is a hosting method that many internet-based businesses find to be extremely advantageous.

With virtual or shared web hosting, you don't have a lot of flexibility or control over your web server that your hosting provider owns. The company providing shared web hosting services partitions a server to be shared between a number of customers for their websites and email. Because it is a shared server, the customers with virtual web hosting on the server share the hard drive, the processor, and the bandwidth as well as applications. The web host that provides the virtual hosting services has control over the server configurations.

Dedicated web hosting is a step up from virtual web hosting because, even if the server is provided by a web hosting company, with dedicated web hosting you are the only customer that uses the server and you generally have complete control of the server for administrative purposes. Because you administer and control the web server yourself with dedicated web hosting, you have greater flexibility. The hosting company that provides dedicated web hosting services generally owns the server and leases it to you as a dedicated web hosting client so they are responsible for hardware management. Depending upon the dedicated web hosting services provided, you may be able to handle your own upgrades and install your own software, or you can outsource such tasks to the dedicated web hosting provider.

Aside from flexibility and control, there are other advantages of having dedicated web hosting. Because you are the only customer using the server, you don't share resources such as hard drive space, processing speed, bandwidth and applications, so dedicated web hosting can be a lot more efficient and can provide a lot more space and speed of processing for your website, database and email applications. The disadvantage of dedicated web hosting as compared to virtual web hosting is that the cost of dedicated web hosting is higher than that of shared hosting.

For most internet-based businesses, dedicated web hosting is sufficient; however, for businesses with advanced needs custom engineering and server design using clustered hosting may be necessary. However, clustered hosting is really pretty rare. For businesses that need custom applications and more space than what is available in a shared environment, dedicated web hosting is usually the answer.

Upgrading from virtual web hosting to dedicated web hosting is recommended if your business has multiple websites, uses custom applications, needs specialized support or increased web hosting space and speed. If your website or websites provide download capabilities for customers, then dedicated web hosting is a good web hosting option for you because there will be fewer bandwidth restrictions than there are with virtual or shared web hosting.

When you first start out in internet business, you may find that virtual web hosting is sufficient and cost-effective; however, as your business grows and you add features and capabilities to your website, or launch multiple websites, dedicated web hosting may be a better option. When making long-term plans for your internet business, be sure to consider the possibility of upgrading to dedicated web hosting in the future and the relative costs involved. It is beneficial to choose a virtual web hosting provider that offers the ability to quickly and easily upgrade to dedicated web hosting when it becomes a necessity for your business.