There are several kinds of web hosting, including managed hosting, and knowing about these things is handy if you want to use a website for your business. The Youtube video “Managed Hosting – Web Development” explains this concept perfectly, so you’ll be able to decide if you need a website or not.
The managed hosting industry has changed over the years.
Previously, you would rent machines from a data center. Now, managed hosting has options like AWS, Rackspace, Linode, etc. These options involve renting machines by the hour. For example, Amazon and many others have AWS and they usually have to pay around 10 cents an hour for it. In those cases, you don’t have to think about bandwidth or electricity. You only pay a bit for the bandwidth depending on what you like.
You can also use an operating system, but the idea is that you don’t have to deal with installing machines and handling them. You don’t have to replace one if it fails. It’s not your job. Reddit uses managed hosting as well, but they originally had their own machines, which are now sitting in an office, unused.
You can check the rest of the video for further details about managed hosting.