Shared hosting users together shared hosting resources to bring down the total cost of ownership for having a hosting service. The shared resources primarily includes CPU, memory, disk I/O and bandwidth.
All shared hosting users have the responsibility to use the shared resources fairly so that all resources can be equally distributed among its group of users. The cost of a shared hosting account is affordable to individual and organization of all sizes.
Dedicated hosting is where all hosting resources are dedicated to a single owner, it may be a single user or an entire organization. The specification of server resources such as CPU, amount of memory, bandwidth, disk storage size and so on shall be determined by its owner during the ordering of the dedicated service. Since hosting resources are dedicated, consistent high performance is guaranteed.
Besides the need for performance to go for dedicated hosting, dedicated users also have the flexibility to setup any server functionalities or install any software onto the server based on their needs.