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Shared vs Dedicated Servers
What are Shared and Dedicated Servers, and what do they have to do with IP Addresses?
Okay, servers are the specialized computers that "serve up" your web content on the Internet. IP addresses are used to identify the location of a server on the Internet. Despite sharing the terms "shared" and "dedicated", these types of servers and IP addresses are very different things. Don't let the names confuse you. I'll start by explaining how a dedicated server works.
Dedicated Servers
Dedicated servers are specialized computers that are used for a single website. In other words, this server is "dedicated" for the use of a single website
or purpose. Having a dedicated server means all of the processing power and resources of that one server, is being used exclusively for that one
customers web site or purpose. This is important for web sites or web applications that are very resource intensive or have special programming requirements.
Utilizing a dedicated server also often gives you root access to the
server. It is the most expensive type of server service, but a dedicated server gives you full control.
Shared Servers
Instead of hosting just one web site like a dedicated server, a shared server hosts many websites
or various customers services. A modern web server generally has enough processing power and resources to hold many basic web sites without a problem. If you have a basic site and don't need special programming requirements or full control, a shared server is a cost effective way to get your content online. Because the server hosts many sites, the cost of the server is split between those sites. This is the least expensive type of server, but gives you the least control.
Dedicated Servers and Dedicated IP Addresses
The only quality these two things share is the fact that they are "dedicated" to a single site. In the case of a server, it's processing power and resources are dedicated to a single site. In the case of a dedicated IP address, the address is only used for only one web domain. IP addresses and servers are separate qualities. It's possible to have a dedicated server that uses a shared IP, or a shared server that uses a dedicated IP.
Why would I want a Dedicated Server?
If you have a web application that is large or resource intensive, a dedicated server is definitely the way to go. Instead of using just a fraction of a server's power, you get to use the machine for all that it can do. A dedicated server usually gives you full control over every aspect. You pay for the undivided power the machine provides. If you have a demanding web application, a dedicated server is worth the added expense.
When would I use a Shared Server instead of a Dedicated Server?
If you only have a basic website that isn't very resource heavy, a dedicated server is an unnecessary expense. Your website will be served fine by a shared server. Because you're only paying for the part of the server your site uses, the cost is significantly reduced. Because you're sharing the server with multiple people, you're only going to have partial control of the server's settings. This isn't a problem for most of the web sites on the internet, which is why the majority of web sites use shared hosting, with or without a dedicated IP address.