A physical server functions very similarly to a regular computer, just on a different scale. It’s a hardware server that includes memory, hard drive, network connectivity, and runs operating systems and applications off its internal hardware resources.
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One of the most common reasons for using a physical server for a workload is to have that workload use all available resources. It’s a dedicated physical server just for one person. Additionally, if you manage or provide hosting for others as a vendor, it could be useful to purchase or rent the physical server and organize a hosting solution for client websites on it through virtualization or other architectures.