I want to know that if I rent a dedicated server from cloud computing service like amazon web services, google cloud.
How can they provide me a server instance? Do they have physical dedicated servers for each one who is renting dedicated server from them or they create a virtual machine like Oracle Virtualbox or VMware?
AWS supports 2 types of dedicated hardware.
The first is dedicated hosts. For this you will have a physical server, with information such as socket and core usage. In addition it allows you to benefit from licensing models whereby you pay by the core as oppose to paying for each VM individually.
The second is dedicated instances. This is similar to the above in that you will have dedicated physical hardware but you will not have visibility over it. Both dedicated and on-demand instances can live on this hardware, but only from your account.
Below is a comparison between the two.
These options become significantly expensive if you use only a small number of the available capacity.