What's a Dedicated IP?
Most larger websites or ecommerce enabled sites have dedicated IP addresses. This means that your site is the only one on the internet using that unique IP number. For example, if you typed 22.214.171.124 into your web browsers address bar you would see Yahoo!'s website come up. This is their dedicated IP address and no one elses. This is their unique address on the web that has been attached to the domain name yahoo.com.
If you have a business oriented website then you probably will need a dedicated IP address for your site. Especially if you have a merchant account and accept credit card payments on your site. You can't even get an SSL certificate for your website until you have a dedicated IP address. You can get around this by using a PayPal shopping cart or something else hosted off your site. But, most people don't like the idea of sending the customer to a new address to close the deal.
A friend of mine said he has a dedicated IP address so his files are 'secure.' I tried googling it and found that it uses File Transfer Protection and one can get a SSL certificate if they have a dedicated IP address. Unfortunately, I don't really understand what this means and how it protects one's files? Can anyone please explain this in laymen's terms so my inexperienced my mind can understand it?