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[hosting456]

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. This is more flexible than shared hosting, as organizations have full control over the server(s), including choice of operating system, hardware, etc. Server administration can usually be provided by the hosting company as an add-on service. In some cases a dedicated server can offer less overhead and a larger return on investment. Dedicated servers are most often housed in data centers, similar to colocation facilities, providing redundant power sources and HVAC systems. In contrast to collocation, the server hardware is owned by the provider and in some cases they will provide support for your operating system or applications.

[Trevor]

Performance
You are not sharing the system resources such as processor power, memory and disk space with other sites on the same server.

Greater Reliability
You do not run the risk of the server being slowed down, swamped with traffic, or crashed by another site on a shared server.

Security
As nobody else has access to the server you can be sure of having a much greater degree of security.

[Sipper]

I may name several companies that are to my mind best dedicated providers.

They are santrex.net, serverpoint.com and rackspace.com. Santrex is an offshore host with huge versatility, excellent performance, wide choise of server locations, lower prices and not restrictions.

serverpoint.com is the stable professional host with superb reputation and experience, great cost-efficience.

Rackspace is the largest dedicated provider I know, green and stable one.

[talkfree]

There are few more to add into the list are

fatcow ,hostgator ,limedomains,godaddy!