Web hosting may be defined as renting space on a web server in its simplest form. One should keep in mind that a website is a collection of files linked together by HTML code to display text and graphics on a computer. However website is not complete here until and unless it is displayed on the net. To make it visible for the world it has to be housed on a computer somewhere that has access to the Internet. This is not possible by just a computer rather special device is required termed as web server. A web server may be defined as a computer set up with special software that allows it to receive requests from the internet for the website files it has stored on it and to send those files out over the internet so that the requesting computer can display them.

Web server in addition to making site visible performs several other functions as well like it provides the ability to create email addresses based on one's domain name and even helps in sending and receiving emails with them. There are several types of software installed on the web server that allows one's website to run programs, create and manage databases, display video, etc. One must note that almost any type of computer can function as a web server, but it's the software that's on it that makes it a server.

When one goes buying a web hosting, the monthly fees to be paid includes cost for maintenance and upgrading of the server's hardware and software, the cost of keeping it online 24 hours a day, 7 days a week in a secure data center with a fast and powerful internet connection, and cost of professional proving these services.

Some general terms you should be aware of when purchasing web hosting:

Storage or Disk space - As one's website is a collection of files being offered on the Internet for viewing, it is necessary for storing them somewhere for retrieval and take up space. For each and every web server there is a limited amount of hard disk memory, which is divided up and offered to hosting customers. Different package levels are there, so as to enable to pay more for more space and vice versa divide specifically that space up. If one's website expands its space then the user needs to buy extra space from the web host.

Bandwidth or Data Transfer - In terms of web hosting the bandwidth is a measure of the data that sent to web surfer computer from web hosting company. If you have a big site that offer downloadable large files or thousands of visitors visit your website daily than you probably need more bandwidth.

Uptime - It is a universal truth that if one talks about perfect web servers then they are the one, which would be up, and running and offering web pages to the world round the clock, whole year. But, it is also true that web servers are mere computers, and like any other computer, they may fail or needs repairing or updating. Often web hosts gives 99% uptime guarantee, and if they fail they refund a certain portion of user's money depending on the amount of excess downtime they experienced.

Traffic Statistics - By traffic statistics we mean those programs that track visitors to one's website. These programs are capable of telling how many times a user visited one site, how many visitors were unique and how many came back more than once, which pages were most popular, from where the visitors came to one's site, what search terms they used in the search engines etc. In addition they offer several types of information which are useful for marketing one's website to a target audience.

CGI Scripts - CGI Scripts are the things like hit counters, guest books, form mail programs, message boards, and other programs that enable one website to perform commonly desired functions. Most CGI scripts are written in common programming languages like Perl, PHP or ASP.