If shared hosting does not give you enough bandwidth, storage, processing power, or the features that you require, a dedicated hosting solution may be the right solution for you. With a dedicated server there are no limits on the number of databases and email aliases you can create and you will get full root access to your server via Telnet or SSH.
The bandwidth available will generally be much greater, with typical dedicated server plans allotting 100-1000GB of bandwidth per month. If extra storage is needed, you can generally simply order an extra hard drive for your server.
The downside is that you will be required to perform all the management on the server and therefore will either have to hire a system administrator, or learn the basics such as patching software, running upgrades and backups etc.
Becoming a skilled server administrator requires a great deal of training and computing know how. If you are low on cash and are willing to learn server administration the hard way, unmanaged servers may be a good option. A lot of web hosts will have online forums where other members (and in some cases the company's own staff) will answer questions. However, if your budget is large enough, then managed dedicated hosting may be a better solution.
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