I want to run my chat application which at present has database of more than 500 users and more than 5000 users chat in the chatrooms..
I have my own dedicated server.
I want to know which method should I follow:
either should I install IRC server on my own server (what would be the security concerns)
or should I take shell account on other server which provide me IRC support so that my application run on that server..
I would run your own IRC server on a dedicated server at a host that allows IRCD. MAKE SURE YOU READ THEIR TOS!!
The problem with using an IRCD shell is usually the fact that they run several IRCD's and are prone to DDOS attacks..
There are some security concerns with IRCD, but it's just like any other service. Keep it updated and keep troublemakers out of your network.
I have been running an IRCD for years now. I have a small community where everyone knows each other and have yet to have an issue.
Also if your running a "Chat application" that interfaces with ircd you might want to run on a non standard port or find some way to lock use down to that application that would most certainly get rid of anyone that would cause trouble on your server. IRC junkies don't like to use web clients...