Here is a list of criterias you have to gather to get an accurate assessment of your technology needs:

• OS: if you use ASP.NET or MS SQL Server, you obviously need a Windows Dedicated Server. If you use an open source stack such as Apache/php/mysql or Ruby On Rails, a Linux server is the best choice.
• Web Server and Database Server: depending on your technology stack, you might need a server with plenty of RAM, especially if the architecture builds upon Windows, Java or Ruby.
• Performance: for SQL servers, video-transcoding severs, servers used for virtualization, or specialized servers such as game or chat servers, you need fast, multi-core processors or ideally multi-processors servers, such as dual xeon servers.
• Bandwidth: if you plan to host images, multimedia files such as flash videos, or an Asterisk server, bandwidth provided by the hosting provider is a key criteria
• Management: if you lack expert sys admins at hand to manage your server, you should look at advanced managed services. A good web hosting company should be able to offer you expert advice on how to do load balancing or web clusters, as well as good support.
• Network: depending on the audience and geographical location of your web service, you should look closely at the location of the data center.

In the web hosting business, the dedicated servers, also referred to as dedicated hosting, are the Rolls Royce. A dedicated server is a powerful computer that is used solely as a network server; a single computer in a network 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. It is therefore solely for use by one organization, and is leased and stored in the data centre of the host company.

A dedicated server includes an operating system (mostly some variants of Linux or Windows) a web server, related software (such as a SQL server, Control Panel and much more) and connection to the Internet, all housed in the web hosting company’s data centers. Dedicated server hosting is typically required for a web site or a group of related company sites that develop a substantial amount of traffic. The server can usually be configured and operated remotely from the host company while still allowing for client customization. A dedicated server can be assigned to function only as a resource server and cannot be used as a client. It is important to note that the server is owned by the web host and you do not have physical access to it.

A dedicated web hosting is beneficial while developing a complex business or a high-end e-commerce site as you will need more space and security – a web server dedicated to your business. It is purchased by a company when they want more control of their server. They purchase or rent the hardware from the hosting company who then normally support and manage it. Internet connectivity is provided to the server, in many cases over 10 or 100 Mb/s Ethernet. Dedicated servers are most often housed in datacenters, similar to co-location facilities, providing redundant power sources and HVAC systems. The financial benefit with cheap dedicated server hosting is huge: large initial investments are not needed.