A Virtually dedicated server is similar to a Dedicated server as it offers many of the same features at a much lower price. With a virtual dedicated server the customer shares the server space with a limited number of other customers using the same server. It is isolated from the other accounts giving the user full control of his own server.

For a Dedicated server a highly skilled tech person is required to manage it. A dedicated server is dedicated only to a single user and it is setup according to the user's preference. In dedicated server the user has the sole rights to the server's bandwidth, memory etc. Usually a dedicated server is used by the companies or individuals who run very high traffic sites and need a large amount of bandwidth and consistent performance.