For Websites requiring more resources and processing power than what regular web hosting can provide, a full fledge dedicated server is normally the best route to take. Having a full fledge dedicated web server is completely different from normal shared or reseller web hosting account. A dedicated server is dedicated to a single user, the complete server hard drive space and the monthly bandwidth can be utilized by the server owner as he/she wants. For Dedicated Server clients there is no restriction on CPU usage, at any point of time server user can use 100% CPU resources. Multiple websites can be hosted on the server without having to worry about paying hosting fees for each website added.
Dedicated Server clients have to take care of the server security, latest patches, released and updates. The server should always be pathced and upto date. An upto date server is always beyond the reach of hackers. If the server is not regularly patched and updated then a hacker could easily gain access to such server.
Due to such heavy administration tasks, there are two types of dedicated servers offered:
Unmanaged Dedicated Server Hosting : It means that the server provider will not help to maintain the server and that’s the reason unmanaged servers are cheaper than managed servers. Unmanaged server are mostly used by administrators, if you don’t know how a server funtions then better stay away from unmanaged servers, that’s certainly not your cup of tea. Unmanaged servers are usually given with the plain operating system installed or with a control panel if requested. Its completely the server users responsibility to take care of all the security patches, upgrades and the technical issues. In such a situation, it might be worthwhile to hire a system administrator to ensure that the server is always in good condition and free from hackers.
Managed Dedicated Server Hosting : It means that the server provider will take care of maintenance and upgrades. If you go for managed server then the web host will take care of all the above mentioned server administrators responsibilities and you just need to concentrate on your business specific content. Managed dedicated servers comes with Apache, MySQL, mail and DNS server pre-installed along with Spam filter and virus-protection for your server. Control panel is optional. Regular updates are also performed on the server in order to make sure you are always running a secure machine, while benefiting from the latest stable versions of the installed programs.

It should be noted that with a managed dedicated server hosting, the server is usually owned by the company, you are just renting it for the time being.