Hosting service providers play a major role when it comes to the distribution of enterprise online content to the target audience. Hosting servers enable the storage of online content and website information securely. In shared hosting, physical servers and other resources such as RAM, bandwidth, and storage are shared with other subscribers.

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The amount of disk space and bandwidth allocated is limited as it is shared in multiple users. That means if the user or website on the same server is under attack due to data breach that could lead to a threat to other shared users.

On the other hand, in dedicated server hosting, the whole server is devoted to a single subscriber or single organization. In dedicated server hosting, the subscriber has total access and control over its server, security systems, operating system, hardware, and software. The subscriber can add preferred scripts, applications, and programs as per requirement. Further, in shared hosting, the user has to be dependent on a hosting service provider to ensure the protection of sites and resources. 

Factors such as growth of virtualization and rise in number of security breaches are expected to drive the expansion of the dedicated server hosting market during the forecast period. Online data security is a major concern faced by enterprises around the globe.

In dedicated server hosting, users can take security precautions such as software tools and firewalls necessary to protect the website and applications instead depending upon the hosting service provider. Rise in demand from organizations for the provision of on demand services, real-time user interaction, and efficient usage of storage devices is leading to the wide adoption of virtualization technologies.

Significantly higher costs of dedicated server hosting compared to shared hosting and virtual private servers is expected to be one of major restraining factor for dedicated server hosting market growth.

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