In modern times more and more projects are located on dedicated servers. Mainly it happens because they are more affordable in terms of price and also allow to gain good level of productivity.
Dedicated server isn't something new. Such hosting type is used for some time and means that the client gets the whole physical machine at his disposal and may use its resources the way he wants. Usually dedicated servers are chosen for high-loaded websites and web-applications - news sites, big portals and so on.
Dedicated servers have advantages over other hosting types. First of all, the advantage is in speed - the websites that are located on such dedicated servers are loaded quickly and this allows to increase conversion.
Another advantage is the flexibility of setup - you may run the application of great complexity and tune the server resources and allocate them the way you want.
Another great factor speaking for the dedicated server is the scalability - it is very important because the projects are developed over time and require more speed and reliablilty.
Dedicated servers are also famous for their increased stability and protection - only your own project is located on the server and this limits the influence from the outside.