Amazon has two types of "dedicated" infrastructure: dedicated instances, and dedicated hosts. They say:
When you launch instances on a Dedicated Host, the instances run on a physical server that is dedicated for your use. While Dedicated instances also run on dedicated hardware, Dedicated Hosts provide further visibility and control by allowing you to place your instances on a specific, physical server. This enables you to deploy instances using configurations that help address corporate compliance and regulatory requirements. [Italics mine.]
I find this unclear. It doesn't explain what the difference is between dedicated hardware and physical server. What is the actual physical difference between these two "dedicated offerings"?