Both types of servers perform almost the same function. They both connect computers and transfer information. A dedicated server is exactly what it sounds like: a server dedicated entirely to your website and its needs. Unlike a shared server, all of the resources are yours alone and no other websites have access to them. This leads to increased speed, reliability and security.
Techopedia Explains Dedicated Server
A dedicated hosting service , dedicated server , or managed hosting service is a type of Internet hosting in which the client leases an entire server not shared with anyone else. This is more flexible than shared hosting , as organizations have full control over the server s , including choice of operating system , hardware , etc. There is also another level of dedicated or managed hosting commonly referred to as complex managed hosting. Complex Managed Hosting applies to both physical dedicated servers, Hybrid server and virtual servers, with many companies choosing a hybrid combination of physical and virtual hosting solution. There are many similarities between standard and complex managed hosting but the key difference is the level of administrative and engineering support that the customer pays for — owing to both the increased size and complexity of the infrastructure deployment.
Bare Metal Server or Dedicated Server
But what exactly is a dedicated server, and how does this compare with what you thought was working fine? A dedicated server is a computer set aside for a specific task, such as hosting a resource-intensive application or website. Dedicated servers can take several forms. With a dedicated server, the server is a computer that is reserved explicitly on a network for your application or website. For many web hosting companies, the standard type of hosting, or at least the lowest priced option, is in the form of cloud hosting.