A dedicated server is a single web server within a network of computers, dedicated solely to one customer, most often a large business. A dedicated server better meets the needs of a large business for several reasons. The client can customise the hardware setup as well as the software to meet exact needs. Data access is faster and high traffic is easily accommodated.

Another advantage of a dedicated server is that the client can easily create several domains on that server. In the case of a company that has multiple divisions or a chain of retail outlets, this becomes much more cost-effective and efficient than each individual division or retail outlet renting host space on a different web server.