Dedicated Hosting is a “rent” of pre-configured full-fledged server from the hosting provider. You don’t share this server (and its resources) with any other users – it’s only under your control. That’s it. You can install/uninstall any software of your choice. Server control/maintenance can be performed by hosting provider (optional). Dedicated hosting is a good decision for those who run heavy websites (with high traffic/load or just need more CPU resources, etc.) or for those who doesn’t want to share server’s resources with others thus improving speed and performance.