In short, Web Hosting is the process of storing files on a computer server that is accessible and connected to the internet or world wide web.

Web Hosts store files on web servers which are normally charged on a monthly or annual basis.

The most effective way of online storage is on a shared server ( where multiple sites are stored on 1 server), which is fine for the majority of websites.

Once the amount of files and or amount of visitors increase will determine if your files are moved away from a shared environment and introduced into VPS and Dedicated server solutions.