It provides you with even more options, including root access, access to Apache and PHP.ini (modification of PHP variables), and much more. You can also install an SSL certificate, and all software program types. In short, you get more freedom in terms of administering and configuring your server, without the hassle of managing any physical hardware.
On the topic of dedicated hosting, many web hosting services also offer managed hosting. This type of hosting sees the web host act as your IT department, handling a server's maintenance and upkeep. This hosting option is something that you'd typically find with dedicated servers, so it's a business-centric addition. Naturally, it adds a few bucks to the hosting cost, but nothing that should break the bank if you have the resources for a dedicated server.
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A dedicated server is best suited to anyone looking to build complex websites that need to look after hundreds of users in a no-compromise environment. (Think Amazon.) It’s like having your own computer: you don’t have to share your space, power or resources with anyone else. Dedicated servers are usually the fastest and most powerful choices available, though some of the high-end VPS options can give the lower performing dedicated servers a run for their money – so check the specs.