Ultimately, it boils down to a balance between cost, features, and risk. It's always tempting to simply jump on the lowest-cost solution, but the fact that email is ubiquitous keeps this from being the smart play. It's nearly impossible to escape using it, which means your users, your customers, and the guts of your business have all come to depend on it in different ways. You need to discover those ways, evaluate them, and then choose a service that either meets or improves on them. This takes time, discussion with your IT staff, and some investigation; these are steps you don't want to skip. Otherwise, you'll pay for it later.
GoDaddy's dedicated servers come in many Linux or Windows configurations. Economy (starts at $89.99 per month, renews at $169 per month) comes with four CPU cores, 4GB of RAM, 1TB of storage, unlimited monthly data transfers, three IP addresses, Office 365 Starter Email, and a free SSL certificate. Value (starts at $104 per month, renews at $199 per month) ups the RAM and storage to 8GB and 1.5TB, respectively. Deluxe (starts at $129 per month, renews at $249 per month) boasts 16GB of RAM and 2TB of storage. Ultimate (starts at $179 per month, renews at $349 per month) has a sizeable 32GB of RAM. Naturally, a long-term commitment nets you big savings. For example, if you sign up for 24 months of the Economy plan, you pay just $79.99 per month).
A dedicated server will likely cost you more than $100 per month; it's definitely not cheap web hosting. The benefit? Your website lives on a server all by its lonesome, so it takes advantage of the server's full resources. You'll probably need to handle firewalls, updates, and maintenance yourself, however, unless you opt for a managed server, which costs even more money. 
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