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...have less disk space, bandwidth, and MySQL databases (usually) and are not as easy to set up...

 

quite the opposite - a dedicated server will normally give you much more space, etc than a shared service. also - a dedicated server is a complete machine just for your site(s), whereas shared hosting will cram many sites all on the same machine - meaning you all share the server's power, and run the risk of a dodgy script within someone's space bringing down the lot.

 

and as Chris said - a dedicated server will let you install what you want. Tired of backwards hosts that just give you PHP 4 and Mysql 3.23 ? Tired of hosts that won't turn off register_globals or install xyz package? no worries! install your own!

 

overall with a dedicated server, you're paying for the performance, stability, flexibility, (security?), etc.

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