A Dedicated server is a server that is hosted by a company and only allows one client company to access the server. The word "dedicated" comes from it being "dedicated" to the one client. No other clients are allowed to use it.
A dedicated server is used to host applications and services. It is hosted by an organization and allows access to one company. The server is operated by the backend provider in exchange for a fee. The client can also remotely connect with the server to perform a server based task.
Clients of a hosting company usually pay monthly, quarterly or yearly fees for the use of a dedicated server.
Dedicated servers helps the user to save money over; hosting, maintaining and managing on-site servers on their own.
In most cases, the hosting company deals with most of the maintenance issues on the dedicated server of the client.
Operating system updates,
Updating any installed applications,
Monitoring the server and applications,
Maintaining the firewall,
Detecting and preventing intrusions,
Backing up Data,
Recovering from disasters.