Nothing virtual about this: it's the real deal.
A dedicated server is a physical piece of server hardware that is 100% dedicated to providing a service to only your business.
The server isn't part of a shared environment, as is generally the case with either a VPS or Cloud server .
When would a small business have a need for this type of server?
Dedicated servers fulfil a need for dedicated resources, such as loads of processing power or extra memory and disk space.
They also enable a higher level of dedicated management, which means more control over the set-up, configuration, redundancy and security than is generally available with either a VPS or Cloud hosting option.
A dedicated server will provide a robust platform for the delivery of a third party business application that may be unique to your business – such as an ERP system that requires loads of processing power and needs to be very secure.