What It Is
On most shared hosting, many websites use the same IP address, and the server figures out which site each visitor wants based on the domain name. A dedicated IP is an address used only by you. It is like having your own street address rather than a suite number in a large office building. VPS and dedicated servers usually include at least one.
Why It Matters for Your Business
Years ago, a dedicated IP was needed for an SSL certificate, but modern technology removed that requirement, so most small websites do not need one. It matters more for email. If you send a large volume of email from your own server, a dedicated IP means your reputation is yours alone, and another customer’s spam cannot drag it down.
Good to Know
A dedicated IP does not improve search rankings on its own, despite occasional claims. It can help when a payment processor, partner or business system needs to allow connections from a fixed address. For sending newsletters, a reputable email marketing service usually handles IP reputation better than a small business can on its own.