As a webmaster, there are a lot of choices which need to be made, choices which ultimately affect the long-term success of your project. Hosting definitely has its role in the equation and if you’re serious about making an informed decision, you need to analyze all of the benefits as well as drawbacks associated with going dedicated. When it comes to drawbacks, the fact that dedicated servers tend to be more expensive is by far the most important one. After all, nobody wants to spend hundreds of dollars monthly on hosting unless it’s either a necessity (maybe the site has outgrown its current setup) or the pros clearly outweigh the cons. No two projects are alike, so it all depends on the specifics of yours. If you have a huge budget at your disposal, it makes sense to go dedicated right from the beginning because that way, you won’t have to go through the hassle of migrating from one hosting plan to another once your site starts receiving some serious traffic. If that is not the case though and if you’re on a tight budget, calculations are in order. Leaving other benefits aside (the fact that you have a lot of resources at your disposal, the fact that you don’t have to worry about other websites crashing the server due to a sudden spike of traffic and the list could go on and on), let’s focus on the SEO aspect of things. First of all, it’s important to understand that there are no “direct” SEO benefits to hosting on a dedicated server. In other words, search engine spiders don’t check if your website is hosted on a dedicated server in order to give boosts or penalties based on what they find out. On the other hand, there are quite a few indirect SEO benefits associated with dedicated servers. First of all, you don’t have to worry about your website being in a “bad neighborhood”. The main problem with shared hosting is that a lot of websites, sometimes even thousands, end up being hosted on the same server/IP. Unfortunately for the people who only employ legitimate approaches to search engine optimization, not everyone is willing to play fair. There are webmasters who are always on the lookout for the fast way to success and it’s safe to assume that out of hundreds or thousands of websites hosted on a certain server, at least a handful will be “problematic” from that perspective. In other words, even if you do everything right, there’s a chance that you’ll have to pay for other people’s mistakes.The most important thing that dedicated servers put on the table is complete control. It’s your server and you can use it as you please. This means that you have more control over the software that you’re using and that you can tweak absolutely everything.