One can think of a dedicated server for the following reasons:
1. You have been on a shared hosting or VPS hosting plan for years now and want to expand.
2. You are starting an enterprise class application that needs a big hosting plan
A Dedicated server is like renting a full computer. It will only have the applications that you want to put on it. If you want to install something on the dedicated server, then either you will have to do it yourself, or will have to pay someone to do it for you. In most cases, people get a dedicated server with only a Windows or Linux server and no other software.
The hardware used by dedicated servers is a little different from that of a regular desktop or laptop. It uses a RAM called ECC RAM. The main difference between the ECC RAM and RAM is that an ECC RAM will actually check the errors and correct them. The regular RAM on the other hands just fails if the comes across an error. A dedicated server will also use RAID controllers, Gigabit Ethernet ports, and standard on board video. RAID arrays are created by RAID controllers. These are complex arrangements of hard drives that either create a solution to backup data or improve performance. Gigabit Ethernet ports connect the systems to very fast switches. It operates at 1000gb/s in ideal conditions. System memory and resources are preserved with the onboard video.
Before switching to a dedicated hosting plan, you should make sure that the server will be properly managed. If something goes wrong on the dedicated server and it becomes unusable, then you will have to pay a fee to get it reformatted. However, if something like this happens on a shared hosting account, then your account simply gets recreated with a backup. The level of risk with a dedicated web server is high than that of a shared hosting account.