In the Web-hosting business, a dedicated server is a rented service. A user rents the server, the software, and an Internet connection from the hosting company that maintains it. For those customers that want the advantages of colocation without the hassles of purchasing their own server.

On a network, a dedicated server is a single computer that is "set aside" for serving the needs of the network, usually to manage communications and printer resources. Not all servers are dedicated; it is possible for a computer to act as a server and to perform other functions, as well.