Since most websites and apps are hosted through the cloud, the dedicated server hosting market’s cap has increased. It was estimated to be valued at USD 16.95 in 2023, and between 2024-30 it’s expected to grow at a CAGR of 18.9%. Due to this fact, many services have now popped up, offering clientele the option of choosing a dedicated server for their needs.
A dedicated server is a powerful and customizable hosting solution for a website. It aims to provide all its resources to a single client, by which you’ll be able to receive the best performance along with other benefits such as security features and better managing of web traffic. This is different than a shared server, which several clients use and its resources are split across the spectrum.
Even though most find it more convenient to access one from a hosting provider, companies can and often do build their own. While setting up your own server is doable and offers greater flexibility and more fine-grained control over the configuration options, it’s a much more complex task. You’ll have to gather the hardware as per your requirements, set up the OS, and code the web server. Choosing a cloud solution means that you simply need to configure it making it much less of a hassle.
More and more industries keep turning to such servers for their businesses. Here are 4 of them, discussed below.
Online Gaming That Involves Transactions
The gaming industry often involves transactions to and from gamers and has witnessed great growth, set to reach $27.97 billion by the end of 2024. By this, we can imagine how many transactions must be processed and this has led to a demand for secure and efficient systems to handle these. This is where dedicated servers come into the fold, offering these advantages.
Of course, there are many factors indicating the growth of the gaming industry, from the number of people who play online to the increasing list of releases of some of the best PS5 games. But let’s stick to the online gaming part and take the example of digital casino platforms, some of them are super popular among players globally, shaping an emerging sector of the gaming industry where transactions are carried out on a daily basis. These casinos not only need a way to securely transfer money but speed and reliability are also needed. If an online Bitcoin casino chooses to get a dedicated server, players will be facilitated with speedy transactions which is likely to influence player retention and help keep these gamers satisfied with the casino’s services.
Additionally, online Bitcoin casinos are preferred due to the fact that they provide a level of anonymity to players. Dedicated servers here ensure that confidential player information like email addresses and bank details are stored safely, and are not exposed to hackers. As casinos grow and the number of gamers rises, the servers can be scaled as needed to fit the higher traffic and transaction volumes.
E-commerce Platforms with High Traffic and Data Sensitivity
Online selling sites generally need to handle large amounts of traffic from users daily. This, combined with the fact that these e-commerce platforms also stored sensitive information of both buyers and sellers means that they require dedicated servers.
One great advantage that fully managed dedicated servers bring to this industry is increased performance due to their exclusive resources, by which websites load quickly. Reliability issues are also corrected as dedicated servers are hosted in data centers that have backups for power and network connections. Any downtime for e-commerce equals a loss of revenue. Studies state that the average downtime cost is $5,600 a minute, while a more recent one found it closer to $9,000.
Healthcare Systems with Compliance Requirements
In the healthcare sector, there’s nothing more important than ensuring patient records’ security. This calls for building the necessary IT infrastructure to facilitate it and companies often rely on dedicated servers.
HIPPA states strict actions against healthcare companies if they fail to provide sufficient security. The cost of these can be from $137 to $68,928 depending on the severity. Dedicated servers help with compliance with these regulations as data can be stored and processed securely.
Web Application firewalls, encryption, and intrusion detection systems can also be implemented which reduces the risk of data breaches. Since the servers are isolated, external threats are barred from accessing information.
Media Streaming Services Needing Reliable Bandwidth and Performance
Our consumption of content has been changed by streaming platforms like Netflix and Hulu, with the former seeing 260.28 million people subscribed to its service. Consumers now need access to high-quality and uninterrupted streaming experience, which is something that dedicated servers help fulfill.
Streaming any video content uses bandwidth, however, dedicated servers offer unlimited bandwidth so large data transfers can occur without any additional costs. This benefits both subscribers and platforms. Additionally, these servers can provide high-speed internet in the gigabit range so streams can be played smoothly, with latency and buffering being minimal.
Final Thoughts
Dedicated servers have changed the landscape of how these industries operate. Through them, everything from performance to security and reliability is enhanced which not only helps the companies operating in these sectors to grow but also provides a better experience across all categories to the customers that interact with them.
With the tech for dedicated servers being continuously upgraded, we see cheaper and better options every now and again. For sure it’s a worthwhile investment for any business.
Ready to take the next step? Explore Ultahost’s Dedicated Hosting and find the perfect solution to meet your business’s growing demands. Boost your performance and secure your data with a dedicated server today.
