If you buy a "server" from a company, it is usually a server on a shared machine. Meaning that your server wont be the only one hosted on that particular computer.
"Dedicated" servers usually mean that you have an entire computer dedicated to you and you alone, which is why they cost more money. These give you more control over what is run, though, and some companies may let you host multiple servers.
Each company uses different hardware. Some use quad cores, some do not.
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