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What is a Dedicated Server?

8th Mar 2024

Wondering what are dedicated servers? A dedicated server is a type of web hosting, and it is all about achieving optimal productivity and efficiency for your business. Essentially, your business rents an entire server from a hosting provider. You gain the benefit of complete control over resources with robust security features.

In shared hosting and other plans, you will be working on a shared server. When you have a dedicated hosting company, you decide exactly how computing resources are used. Unlike virtual servers, you don’t just gain access to a portion of the available resources with offsite server hosting and multiple users. Managed hosting services with a dedicated server are a fantastic option for businesses that have large workloads and need more control.

Let’s explore more about what is a dedicated server and evaluate how outsourcing dedicated server management can benefit your business.

What Does Dedicated Server Mean?

A dedicated server is a physical server that can run applications, websites and different software off the physical server. Hosting providers will give you access to your own dedicated server in a single-tenant environment.

The resources on the physical server can only be used by your business, which makes dedicated servers a highly effective hosting solution. It is much more efficient to have a physical server than to rely on virtual servers that may struggle with the large amounts of data processing you require.

You have full control over operating system server configurations, memory usage, root access, server hardware, and more. A dedicated server is a great choice for large businesses that need unmetered bandwidth and high performance. Dedicated servers provide premium organisation and efficiency in one dedicated server plan tailored to your business needs.

A dedicated server works in one of two ways with various responsibilities depending on your chosen type of dedicated server:

Dedicated Managed Servers

With a managed server, a hosting provider will take on a lot more responsibility in regard to the setup, maintenance and monitoring of your dedicated server. While this may be more expensive, it is far less time-consuming. In this way, it can be cost-effective. The time your IT team spends attempting to fix any issues that may arise can rack up and become costly.

If you opt for a managed dedicated server, your dedicated server providers will take on or assist you with the following tasks:

Server Configuration

After you’ve decided on a dedicated server provider that can meet your specific requirements, you need to complete the server configuration. This completely depends on your business needs, and it’s important to choose dedicated servers that will support your company with the right CPU, RAM, bandwidth, and storage. Your hosting provider can make recommendations about what may be the ideal dedicated server for your operational needs.

Set Up

Whether you’ve chosen a managed or unmanaged dedicated server, your host should still set the server up for your business. They will install the operating system, software, and applications for your exclusive access via a control panel or a command line interface.

Run Virtual Servers

If you so wish, after the operating system has been implemented, you can run multiple instances of virtual machines on dedicated servers. Hosting companies can assist you with managing the different virtual servers and controlling access to each virtual server.

Software Updates

If you opt for a managed environment, your host will be able to update your software for you. This ensures that you have access to the latest technological innovations and updates so that dedicated servers run efficiently with high performance.

Security Patches

If you have implemented managed dedicated hosting, your provider will continually ensure your dedicated servers are as secure as possible. This includes setting up security protocols like firewalls and SSL certificates on your own server and any virtual machines connected to it. Your provider will also execute security patches and protect dedicated servers from online threats.

They make sure only authorised users can gain access to your important data, look out for future threats and prepare you for any potential interruptions.


Managed dedicated servers provide technical support whenever you need it, so you do not have to deal with workflow interruptions yourself. Your business will need a dedicated server that operates at peak productivity and high performance, and your host will assist you with any potential technical issues that may arise.


If you opt for renting servers that are fully managed, your provider will take on the responsibility of monitoring all processes. Your server will regularly be checked to ensure it is running at high performance, is up-to-date, and is secure.

Automatic Backup Services

Dedicated hosting servers are generally used for high-volume or sensitive data, particularly in the financial sector. With Beeks’ low latency servers, your dedicated server network is consistently backed up and can be recovered at any time. The backup service for dedicated servers is essential for business continuity. If there are any issues or interruptions to your data and resources, your information is secure and will not be lost.

Dedicated Self-Managed Servers

With unmanaged dedicated servers, you won’t have access to the additional responsibilities and tasks usually taken on by your provider. With this in mind, it becomes your sole duty to handle all tasks associated with the server, including updates, monitoring, technical fixes and backups of your infrastructure dedicated servers. These tasks can be complicated and extremely time-consuming. Choosing managed servers dedicated to your business can be more efficient.

Types of Dedicated Servers

The type of leased server you choose depends on your business. While some businesses prefer the cost-efficiency of shared hosting on a shared server, others tend to opt for the productivity of a dedicated hosted server. To help you find the right solution for your business, we’ve outlined the five main types of dedicated servers besides standard dedicated server hosting:

Enterprise Dedicated Server

An enterprise server is best suited for larger companies. Some smaller companies go for an enterprise low latency server because of its high functionality, increased RAM, performance, and storage associated with global dedicated hosting. Many financial service companies that require high performance make use of a dedicated trading server.

Cloud Dedicated Server

With cloud dedicated servers, your data is managed, processed and stored online in the cloud instead of on a physical server. Hardware resources are all shared and can result in lower performance, which is why companies may prefer a bare metal dedicated server. Bare metal server providers reserve bare metal dedicated servers to one client who has full control over resources, while cloud resources are shared.

Dedicated Server for Emails

These servers are for businesses that prioritise confidentiality in communication. Your company will be able to monitor emails, create uploading limits, and incorporate company email addresses with top security features.

Dedicated Server for Websites

A website dedicated hosting server is primarily for companies that require a host to run their websites. Maintenance responsibilities are shifted to the host, and you will achieve higher security levels.

Dedicated Server for Gaming

These are specifically for gamers or gaming companies that require private dedicated server racks to improve ping, reduce lag, and operate with high storage.

Applications of a Dedicated Server

Many industries benefit greatly from a dedicated server service, such as the healthcare sector, research institutions, online stores, the gaming sector, media-streaming businesses, and financial companies.

Servers for financial services are particularly helpful in regard to upholding regulatory standards and protecting sensitive data. Additionally, many financial companies invest in a trade exchange dedicated server to improve the efficiency of their operations.

Benefits of Dedicated Servers For Finance Markets

Finance markets tend to use dedicated servers for a variety of reasons. They present a high-performing solution packed with efficiency that can increase profits and save time in the long term. Here are some benefits of dedicated servers for finance markets:


Financial markets tend to deal with incredibly sensitive information and have high privacy requirements. With dedicated servers, your financial and accounting information is kept completely confidential. Your business can be at ease knowing that all financial records are private, backed up, and have limited access.

Optimal Data Management

Many financial institutions have a large customer base, colossal sets of data to protect and process, and past records that need to be preserved. A dedicated server can ensure your data is organised, records are kept safe, statistics are safeguarded, and you can efficiently access your required data whenever needed.

Low Maintenance

With a dedicated server, a host that manages your resources and site will take control over maintenance, leaving you with fewer server responsibilities and more free time to focus on other important business priorities. You will not have to worry about software updates, security patches, technical fixes, backups, and other essential server responsibilities.

High Security

Not only is all your private data kept confidential and efficiently organised in a dedicated server, but you also have access to innovative safety features that can protect your business in a number of different ways.

None of your physical resources and space are shared in dedicated servers, offering complete control over safety. Your host can track your processes and better detect fraud. They can also discover cyber threats, eliminate them, and predict any other future issues that may arise.

Higher Load Capacity

When your server is dedicated solely to your company, your banking website and customers have a high load capacity. This makes browsing your website easier, as all server resources will be dedicated to the site. This also improves your reputation in the financial industry, as clients can enjoy a more user-friendly experience when utilising your website.

Flexibility & Scalability

Dedicated servers are designed with your company in mind. A provider like Beeks will ensure that your company can scale its resources down or up at any time as needed. If your business grows, your server is flexible enough to be customised to your new set of needs, offering full control over your hardware, applications and software.

Higher Service Level Agreements

With dedicated hosting, your provider will ensure that there are measures in place to lower the risk of your server experiencing downtime. This increases customer satisfaction when using your website, as your clients won’t suffer from lag interruptions or the website shutting down unexpectedly.

As most financial institutions have a lot of website traffic from new and returning customers, the traffic flow can be unpredictable and spike from time to time. Servers dedicated to your website will assist in optimising your site and reducing lag, loading time, and other interruptions.

Full Control

Because you rent a physical server, there are no other users with access to your resources. That means you can host multiple websites, applications, software and more without suffering more lag, limited resources, and other disruptive actions. Your resources completely belong to you, and there are no caps on your bandwidth and website traffic.

Choose Beeks’ Dedicated Server Solutions

Now that we have covered what are dedicated servers and how they can help your business streamline productivity, let’s explore Beeks’ dedicated server solution.

Choosing Beeks to be your hosting provider when you need a dedicated server guarantees constant support and reliable service. We offer market-leading solutions and a team with extensive professional experience in the field of algorithmic trading. With our servers, you will adhere to regulatory and legislative demands with ease and achieve peak productivity.

Our customers choose our dedicated server hosting solution to gain access to a global reach and an expansive network of trading infrastructure and connections. With our dedicated hosting solution, your business will discover low-latency dedicated servers built on a 100% Arista trading network.

Curious to learn more about what is a dedicated server and how it can help your capital markets firm? Enquire about Beeks’ dedicated hosting service to streamline your productivity.

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