The most affordable third-party hosting solutions require that you share server hardware with other clients of the provider. The number of different clients who can access one server might be in the tens or hundreds. This may be a cheap and cheerful approach, but as the needs of your business grow you might find it a little restrictive.
This is because you will either find that your own services are being compromised by the strain put on the server by others, or you could end up stepping on everyone else’s toes with your own activities. Shared hosting is fine for a time, but many businesses will quickly outgrow it.
If you opt for a dedicated server, you would be the only client on the server. That means all the processing power and bandwidth available on your server will be available to your business and your business alone. Using a dedicated server is thus appropriate if you want to host data and processor-intensive websites and apps.