As your website grows, it is quite common for these website owners to setup their own dedicated hosting web server. Larger websites tend to use more resources, such as bandwidth and server CPU, that shared hosting platforms aren't able to provide. Aside from additional resources, what else can dedicated hosting do for you?
The best thing about dedicated hosting is that you get the web server all to yourself.
Since you have the web server all to yourself, there are no restrictions on what operating systems or what programs you can install on it or on your website. Unlike shared hosting, dedicated hosting does not restrict your website to a particular mold or setup.
Another advantage of dedicated hosting is that you get the server all to yourself. This means that you get all of the web server's CPU and memory all to yourself. You won't need to share these resources with other websites unlike shared hosting. In a shared hosting environment, if a website on the shared web server goes down, it might cause the entire web server to go down as well, including your website. Dedicated hosting will give you much more stability and reliability over shared hosting.
Because dedicated hosting is so powerful, it will cost more than the typical shared hosting plan. Typical dedicated hosting plans will cost $100+ a month depending on the type of server the web host gives you. The cost is comparable to renting the server hardware and bandwidth.
If your website is doing well and is a good source of income, stepping up to dedicated hosting might not be a bad idea.