I started off my service like that. It's just a computer with a vncserver on it.
A dedicated server is a single web server within a network of computers, dedicated solely to one customer, most often a large business.
Now they can setup around 48 nodes on the one server (oversold nodes of course) and sell them for $5 each bringing in around $240/m which is $60/m profit. This is theoretical and not 100% accurate, but used as a demonstration.

