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In a server environment there are different levels of updates. ,

• Package Update
• Kernel Updates
• Release Updates

This is to allow the administer fine grained control. The more higher level of updates, the more risk to a system. The types of updates are,

• Package Update
• Kernel Updates
• Release Updates

Package Update is the safest and covered in Setup Ubuntu Linux Base Server.

The next level is updating the Kernel (Roderick add link to Kernel on Wikipedia and go over high level what the Kernel gives you... bottom line why anyone would want to upgrade the Kernel).

sudo apt-get dist-upgrade

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