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Why Dedicated Servers Are the Best Solution For Streaming Services

March 12, 2025

Dedicated servers are revolutionizing the streaming industry by simultaneously delivering high-quality, uninterrupted content to millions of users.

SUMMARY

Choosing the proper infrastructure becomes crucial as viewer expectations soar and competition intensifies. Dedicated servers provide the power and reliability needed to stay ahead.

Understanding Dedicated Servers for Streaming

A dedicated server is a physical machine allocated exclusively to one client or purpose. 

Unlike shared hosting or cloud environments—where CPU, RAM, and storage are divided among multiple users—a dedicated server grants complete control over all its hardware resources.

This exclusivity provides significant advantages for streaming. Streaming platforms using dedicated servers benefit from the entire processing power, memory, and storage capacity, ensuring maximum performance without the slowdowns caused by other users. 

Complete control over server configuration allows for tailoring hardware and software settings to specific needs, such as 4K video delivery or complex Digital Rights Management (DRM) systems.

Dedicated servers also enhance security by offering physical isolation, eliminating risks of data breaches or performance issues from neighboring users. 

This means streaming services can operate with confidence that their data and user information are secure.

Additionally, dedicated servers ensure uninterrupted performance, crucial for live events or peak times. They minimize buffering and maintain high-quality streaming, and without resource sharing, there’s no risk of lag or interruptions caused by other tenants.

Dedicated servers can also minimize latency—the delay between a user’s action and the server’s response—by providing direct and consistent access to the network. 

This is vital for live streaming, interactive events, and online gaming, where real-time engagement is key.

Every streaming platform has unique requirements, and dedicated servers offer flexibility to customize hardware and software configurations to meet these needs. 

Dedicated servers allow platforms to adjust their settings without the limitations of shared hosting or cloud options, whether optimizing for 4K/8 K streaming or advanced DRM.

Security is paramount, and dedicated servers provide robust protection through isolation and custom access controls. 

These servers safeguard content and user data with features like firewalls and VPNs, eliminating the risks associated with shared infrastructure.

Unlike cloud hosting with variable pricing, dedicated servers offer predictable monthly costs, making budgeting easier for platforms with consistent, high-volume traffic. 

This enables better financial management while maintaining top-tier performance.

Overall, exclusive hardware access, customization options, and predictable costs empower platforms to deliver exceptional viewing experiences and stay competitive in a rapidly evolving market.

These parameters make dedicated servers ideal for streaming services that require reliability, performance, and security.

Dedicated Servers vs. Cloud Solutions: Which is Better for Streaming?

When comparing dedicated servers and cloud solutions for streaming, data transfer costs play a crucial role in decision-making. 

Data ingress and egress are key considerations here. Ingress is the incoming data to the server, and egress is the outgoing data, which becomes particularly relevant for streaming platforms due to the high volume of content delivered to users.

While many cloud providers offer low-cost or free ingress, they often charge hefty fees for egress, which can add up quickly for streaming services. 

These costs become more significant as the content volume increases, making cloud egress pricing a potential financial burden.

On the other hand, dedicated servers offer a more predictable approach to data transfer costs. 

Dedicated hardware allows streaming platforms to manage large amounts of outbound data without the fluctuating egress charges that cloud solutions impose. 

This allows more precise budget management, especially for services with constant high-volume traffic like live broadcasts or video-on-demand.

Additionally, dedicated servers offer more control over network settings, enabling platforms to fine-tune data routing for faster and more efficient content delivery. 

This reduces latency and ensures a smoother viewer experience.

While cloud services excel in scalability and flexibility, the unpredictable and often high egress fees can strain even the most significant budgets.

Dedicated servers, however, provide a more stable and cost-effective solution. They deliver both performance and financial predictability, making them a solid choice for platforms focused on quality streaming without the risk of unexpected expenses.

MUBI Streaming Platform

MUBI, a rapidly growing streaming platform, partnered with Latitude.sh to optimize its hosting and data services across multiple regions, including South America and Asia. 

By leveraging Latitude.sh’s high-touch, personalized approach, MUBI achieved notable performance and cost efficiency improvements.

Key achievements included a 300ms reduction in latency in Argentina and 200ms in Brazil and a 35% reduction in infrastructure costs in Brazil. 

The improvements also contributed to a +5 point increase in MUBI’s Global Performance Indicator, enhancing users' overall streaming quality.

MUBI’s strategy to build its own Content Delivery Network (CDN) led to unique hardware requirements, which Latitude.sh accommodated with customized machines. These instances offered the flexibility and agility MUBI required for growth. 

Latitude.sh’s tailored support allowed for seamless communication and quick hardware updates, ensuring MUBI could stay ahead in its fast-expanding markets.

The partnership with Latitude.sh has proven instrumental in reducing latency, improving service quality, and driving MUBI’s expansion plans, including a forthcoming North American operation.

Gamers Club

Gamers Club, a leading Brazilian esports platform, is committed to professionalizing competitive online gaming in Brazil. 

Founded by renowned Counter-Strike player Gabriel 'FalleN' Toledo and partners Yuri Uchiyama and Juliano Mirandolli, the platform quickly became the largest esports community in Brazil. 

As the company grew, it faced scalability and technical support challenges, prompting it to seek a more reliable hosting solution.

After migrating to Latitude.sh, Gamers Club experienced immediate improvements. 

The migration, supported by Latitude.sh’s easy and open process, reduced players' average latency by 30% and scalability-related incidents by 90%. 

Additionally, infrastructure costs decreased by 28%, allowing Gamers Club to allocate resources more effectively.

Choosing the Right Dedicated Server Hosting for Your Streaming Service

Selecting the ideal dedicated server hosting provider ensures your streaming platform runs smoothly and provides the best user experience. 

As you evaluate potential providers, consider key factors that will significantly affect your service's long-term success.

First, consider the network infrastructure. A reliable, high-bandwidth network is essential for streaming services, as it ensures that your content can be delivered quickly and without interruptions. 

Look for providers with solid, high-performance network capabilities that can handle the demands of high-traffic streaming, especially during peak viewing times.

Another critical factor is the global presence of the hosting provider. 

It’s beneficial to choose a provider with data centers strategically located near your target audience to reduce latency and improve the quality of the streaming experience for your users. 

This geographical proximity ensures faster data transfer, essential for smooth, uninterrupted streaming, particularly for live events or high-definition content.

As your platform grows, scalability becomes increasingly important. Choose a hosting provider that can accommodate your future needs, whether that means adding more servers, increasing storage, or enhancing your processing power. 

The right provider will have the flexibility to scale up quickly as your user base expands.

Support is another vital consideration. Streaming services require constant uptime and reliable service, so 24/7 technical support is crucial. 

A provider that offers round-the-clock assistance can help you resolve issues promptly and keep your service running smoothly, minimizing downtime and maintaining a seamless user experience.

Finally, customization options should not be overlooked. Every streaming service has unique requirements based on content delivery, video quality, and user interaction. 

A provider that offers flexible server configurations, allowing you to tailor hardware and software to your specific needs, will give you the freedom to optimize performance for your platform’s unique demands.

By considering these factors—network infrastructure, global presence, scalability, support, and customization options—you can make an informed decision about the right dedicated server hosting provider for your streaming service and ensure the best possible experience for your users.

Why Bare Metal Instead of On-Premise

When deciding between on-premise and managed hosting on dedicated servers for streaming, businesses must weigh the responsibilities of infrastructure management, flexibility, and the level of control they desire. 

This section outlines the pros and cons of managing servers internally versus leveraging external expertise, offering insights beyond previous arguments.

On-Premises Dedicated Servers

On-premises dedicated servers involve hosting and managing your servers in-house. 

This gives your business control over server hardware and software, including the ability to customize your streaming environment as needed.

Pros of On-Premises Dedicated Servers:

  • Direct Control Over Hardware: Having the servers physically in your possession means you can make real-time decisions about hardware upgrades, replacements, and configurations to meet unique needs, such as higher video quality for streaming.

  • Complete Network Visibility: On-premises solutions give you a direct view of the internal network, which can be necessary for troubleshooting and making adjustments quickly, primarily if your streaming operation relies on tight internal integration.

  • Strategic Location for Latency Management: For businesses with a local or regional audience, on-premises servers allow you to strategically position them closer to your users, potentially reducing latency compared to distant cloud data centers.

Cons of On-Premises Dedicated Servers:

  • Space and Environmental Costs: Hosting servers on-premises requires physical space, with the added cost of real estate, electricity, cooling, and ongoing facility maintenance to keep equipment running optimally.

  • Staff Overhead for Specialized Tasks: On-premises servers require more specific expertise in server management, network configuration, and infrastructure scaling. Employing an experienced in-house IT team can add to your staffing costs, especially for a specialized area like streaming.

  • Limited Redundancy Options: While you can configure backups and failover systems, creating the same level of redundancy as a managed provider might require significant investment in additional hardware and resources.

Managed Hosting on Dedicated Servers

Managed hosting on dedicated servers allows businesses to rely on external service providers for infrastructure management, including setup, maintenance, and monitoring. 

With this solution, the provider assumes responsibility for the day-to-day tasks of server management.

Pros of Managed Hosting on Dedicated Servers:

  • Vendor Expertise: Managed hosting providers often have dedicated teams of engineers with deep knowledge of streaming technologies. Their experience with optimizing server configurations for high-traffic streaming platforms can lead to more reliable and efficient performance than what may be achievable in-house.

  • Efficient Use of Resources: By outsourcing server management, your team can focus on content creation, user engagement, and other core business functions without diverting attention to infrastructure issues. This allows for better use of internal resources while external experts handle technical concerns.

  • Predictable Scaling: Managed hosting providers can offer flexibility in adjusting server resources to match the growth of your streaming platform. Unlike on-premises servers, which may require significant upgrade lead time, managed hosting can quickly scale bandwidth, storage, and computing power on demand, allowing immediate response to audience spikes.

Cons of Managed Hosting:

  • Less Granular Control: While managed hosting ensures reliable performance, some providers may restrict how granularly you can customize or configure the system. You might face limitations in adjusting server software or specific hardware elements to fine-tune performance for specialized streaming needs.

  • Data Transfer Limitations: Depending on the provider, there may be restrictions on the amount of data that can be transferred or bandwidth limits that could impact streaming quality during high-traffic periods, potentially leading to throttling or additional fees.

  • Potential Provider Lock-In: Relying on a managed hosting provider can create a dependency, limiting your ability to move infrastructure elsewhere without incurring additional costs or downtime. Additionally, you may become reliant on the provider's hardware and infrastructure, potentially limiting future flexibility.

Which Option Is Right for Your Streaming Business?

Choosing between on-premises and managed hosting on dedicated servers ultimately hinges on factors such as:

  • Budget and Long-Term Financial Strategy: On-premises hosting requires more upfront investment in hardware, facilities, and personnel, while managed hosting involves ongoing subscription fees. If you have long-term financial stability and can invest upfront, on-premises servers may make sense. Otherwise, managed hosting offers a more predictable financial model.

  • Operational Efficiency and Focus: If your team’s primary strengths are content creation and streaming technology, managed hosting offers an efficient way to offload the infrastructure burden. This allows you to prioritize scaling your platform without diverting energy to system maintenance.

  • Speed of Growth: Managed hosting is particularly advantageous for rapidly growing streaming businesses. The flexibility of scaling resources quickly ensures you can meet demand without delay, an option that may not be as seamless with on-premises servers, especially during high-demand periods.

  • Control Requirements: Businesses with particular security, customization, or compliance needs may benefit from managing their own infrastructure. On-premises servers provide complete control over your environment but may be more resource-intensive and challenging to manage.

The decision between on-premises and managed hosting through dedicated servers for streaming depends on your business’s priorities: whether you need complete control over your infrastructure or prefer to leverage the expertise and scalability offered by external service providers. 

By carefully evaluating your financial resources, team capabilities, and operational needs, you can make the best decision to support your platform's growth, performance, and long-term success.

Join Latitude.sh and experience the unique benefits of bare metal for high-bandwidth applications.