Dedicated Servers have been around for quite a while. They predate the Internet, and if you are old enough to remember, you would know that many businesses once had dedicated servers on-site in a data closet or a full data center. Now many companies host their servers remotely, and some have adopted cloud computing, which leaves control of the server and software management in the hands of a service provider.
Will cloud computing replace dedicated servers? It is impossible to know for sure, but the growth of cloud computing also needs to be kept in perspective. While many businesses and individuals are now using the cloud, most have not completely abandoned on-premise solutions for the cloud. Moreover, not every business is the same, and some businesses need and can afford to continue having their own dedicated servers.
Because of this, I believe dedicated servers are here to stay. Many companies choose cloud computing because it is affordable and maintenance-free, but some of the disadvantages include a lesser amount of control, no local access, and limitations within the software and services offered.
If you can afford to purchase and upgrade dedicated servers and have no difficulties maintaining and managing them, it just makes sense to keep your operations in-house rather than jumping into the cloud. As long as that reality holds true, dedicated servers will continue to be useful.