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Dedicated servers differ from the standard home computer primarily by means of the operating system. Specialized versions of Windows, optimized for network operations, and UNIX are utilized by dedicated servers.

Whereas your home computer becomes a word processor, a video game system, a check book balancer, and so on, a dedicated server utilizes a minimal user interface, allowing the majority of its work to occur on the network. CPUs are similar, as are memory and storage systems; however servers tend to have vast amounts of each.

Why dedicate a server?

In the hosting market, it is not uncommon for a service provider to rent server space to dozens, if not more, accounts on the same dedicated servers. Depending on usage and number of requests, some accounts may suffer as the server reaches its limits.

Service providers also determine the hardware and software configuration of the machine. If you have requirements for some piece of software they have not installed, you may be out of luck. Dedicating a server puts you in control. From the hardware to the software, you choose the components that your server will employ.