A dedicated hosting service, dedicated server, or managed hosting service is a type of Internet hosting in which the client leases an entire server not shared with anyone. This is more flexible than shared hosting, as organizations have full control over the server(s), including choice of operating system, hardware, etc. Server administration can usually be provided by the hosting company as an add-on service. In some cases a dedicated server can offer less overhead and a larger return on investment. Dedicated servers are most often housed in data centers, similar to colocation facilities, providing redundant power sources and HVAC systems. In contrast to colocation, the server hardware is owned by the provider and in some cases they will provide support for your operating system or applications.
Availability, price and employee familiarity often determines which operating systems are offered on dedicated servers. Variations of Linux (open source operating systems) are often included at no charge to the customer. Commercial operating systems include Microsoft Windows Server, provided through a special program called Microsoft SPLA. Red Hat Enterprise is a commercial version of Linux offered to hosting providers on a monthly fee basis. The monthly fee provides OS updates through the Red Hat Network using an application called yum. Other operating systems are available from the open source community at no charge. These include CentOS, Fedora Core, Debian, and many other Linux distributions or BSD systems FreeBSD, NetBSD, OpenBSD.
For more see http://en.wikipedia.org/wiki/Dedicated_server
The dedicated server buyers should know exactly what is covered under managed services. Here is a guide for the buyers, but remember this list is not exhaustive as many times buyers’ need are different:* Kernel Upgrades, OS patches, System pre installed services updates.* Custom DNS configuration* Software Firewall Installation and Configuration* Backups and restoration help if needed* Control panel Updates* DLL setup Assistance* Assistance in, creating, deleting, setting up email* Assistance in system alerts or warnings* Mysql updates, Database corruption assistance* SSL configuration and installation* Email/FTP troubleshooting* High Server Load troubleshooting* Bandwidth monitoring & management* Hardware Replacement as per SLA* Server Recovery on failure* Failed Drive service restoration* Hands on help with preinstall system settingshttp://www.palcomonline.com