This is a low cost option for the hosting company and they will usually offer some kind of data protection using a RAID system where data is copied across multiple disks. This is an entry level solution but one issue is that the server itself represents a single point of failure. It could be that the power supply fails which brings the server down for example.
The two environments have plenty of overlapping qualities, but most importantly Dedicated Server render greater security, customization and excellent availability. With granular control, you are free to customize hardware components like disk space or RAM and installation of unique operating systems. More substantial computing power (CPUs) and disk space allow Dedicated servers enhanced performance for high amounts of traffic. When uptime and performance are critical to your business Dedicated Servers are second to none for hosting.

Amazon VPC provides advanced security features, such as security groups and network access control lists, to enable inbound and outbound filtering at the instance level and subnet level. In addition, you can store data in Amazon S3 and restrict access so that it’s only accessible from instances in your VPC. Optionally, you can also choose to launch Dedicated Instances which run on hardware dedicated to a single customer for additional isolation.
Mirror and share a deep copy of your in and outbound virtual network traffic. Take advantage of aggregation, packet collection and load balancing solutions by streaming traffic to a destination IP endpoint or an internal load balancer in the same Virtual Network, peered Virtual Network or Network Virtual Appliance that you can deploy from a growing list of Security, Network and Application performance management partners.
Typical Use Case: Early stage startup workloads, quick prototypes, prelaunch experimentations, dev/test environments, microservices node, code repositories, dedicated application servers for light workloads. Resource intensive workloads like data aggregation, gaming front-ends, video encoding, high performance computing, batch processing. Also see our managed services for Startupreneurs.
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