Setting up a full-fledged server at your workplace is any expensive affair. Also it involves many resources & technicalities to manage & run the server.

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Web hosting is renting out a space on a server which makes your website accessible to everyone on the internet. Basically your website files(web pages) are stored on this server. So whenever somebody looks for the domain name on the internet, he/she gets directed to the website. So simply put, web hosting is the act of uploading your website files from your local computer(where they can be accessed only by you) on the world wide web (where It can be accessed by people all over the world)