Whether you are a small company with just ten to fifty employees or an established firm with more employees than that, the requirement of dedicated servers depends upon a lot of factors which should be considered thoroughly before taking a decision in black & white.
If you are to hire a hosting company to rent server space, it could either be shared or dedicated server space, wherein shared hosting would mean that your website would share the web space with other websites and dedicated servers would provide you exclusive space with dedicated network connections.
Needless to say, renting a shared server space is cheaper than the dedicated one and require less technical expertise to manage the network as the host does most of it for you, however on the other hand, managing a dedicated server would require a dedicated tech team professed enough to maintain and troubleshoot in case of any glitches.
Shared server space is considered best for small businesses and websites with low site traffic and less visitors on a daily basis, in terms of technical aspects & economically as well. There are a number of factors such as server response time and security of the network which should be kept in mind before deciding to opt for a shared or dedicated server space.
Server response time will directly affect the visitor browsing capabilities on your website and on a shared space it would depend upon how other websites sharing space with you are doing. If one website has comparatively higher amount of traffic, it would clearly affect in the response time for other website on the same shared space. Information stored on a shared server will be more prone to online threats than any website on a dedicated server and that is the reason, all e commerce websites run on secured dedicated servers.
