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There is no simple answer to this question. You may need a dedicated server in following cases:-
Security – Being on a dedicated server, you are on your own. The server is not shared amongst any other users. Nobody can have access to the server. Therefore, you can be sure that your data is safe. For example, on a shared host, in case of wrong configuration of server, any other users on the server might be able to read your data. If you own VPS, there is System Admin to read your data. However, if you own a dedicated server, there is nobody who can access the server, except you.
CPU power – If you own a shared hosting plan or you have a VPS then CPU, RAM and I/O resources are shared with other users on same server. If, in case, any user exceeds the use of CPU and/or RAM, the server performance can suffer greatly, sometimes enforcing it to go down. In this case, you do not have any option other than waiting for hosting provider to take necessary action. This is not the case with dedicated server; the CPU works only for your site. It does not mean that the server can never go down, however, sometimes, you have control on the situation to work on it and get it up as soon as possible.
Performance – Every thing that we have discussed in this article, directly or indirectly relates to performance. As there is no one to share the server, indeed, you get best performance.
Please let us know your requirements in detail, so that we can help you with selecting the best suitable plan.
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