There are many differences between a local machine and a
dedicated web server. A local machine accumulates a lot of space where as for a Web Server, you only need good internet connections to connect to the server remotely. Dedicated Web Server is easily accessible 24x7 whereas this is not the case with a local machine and has a few restrictions. In order to maintain confidential data, we can store on the web server.
Dedicated Web Servers are safely kept at secured locations in order to maintain highest possible security to the servers. At a Data Center location, hardware availability for upgrations or replacement is much higher when compared to a local machine. However, the basic fact remains you need a local machine to connect to a Remote Dedicated Web Server. There are many more points which can be discussed further.
Looking forward to see what one thinks...