In my experience, using dedicated servers for SaaS applications offers several distinct advantages, particularly when you start scaling your user base. The biggest benefit is performance. Dedicated servers ensure you have all the resources to yourself, which means your SaaS app can handle a higher volume of users and data without experiencing slowdowns. Plus, they offer much better security options, as you have full control over your server’s firewall and can configure it to your specific needs.
Also, dedicated hosting is more flexible. You can customize the hardware, software, and security features to meet the unique demands of your SaaS product. You can read more about the difference between web hosting and web servers, which can help you decide what’s right for your platform, in this article: Difference Between Web Hosting and Web Server.https://webhostinggeeks.com/blog/difference-between-web-hosting-and-web-server/
That being said, dedicated servers might not be necessary in the very beginning stages of your app, especially if you’re just starting out with a small user base. It could be more cost-effective to start with a virtual private server (VPS) and then scale up to a dedicated server as your needs grow.