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Web hosting is a broad term used to describe the act of storing web files on a web server so that they can be viewed by people on the Internet or an intranet. There are many different configurations and options available when it comes to how you decide to host your web files. Regardless of which method you choose, you should understand the basics of whats involved and what you should get with any web hosting service.
A web server is a computer that is continuously connected to the Internet and has special sever software (most commonly Apache web server) that reads hypertext transfer protocol (HTTP) requests from client side programs (such as web browsers), processes the request and sends either the requested file or resource, or any error codes in an HTTP response. You store your web files on the servers hardrive. A web file is most commonly an HTML file but can also include dynamic content files such as PHP files. Web hosting services will specify the amount of disk space or storage that you get when you use their hosting services. This is a measurement of how much space you are allowed for your files on their hard drive and is usually measured in gigabytes.
Data transfer, or bandwidth is the terms web VPS hosting companies use to refer to how much information you are allowed to send through their server connections each month. If you have a web file that is one megabyte, each time someone downloads or views that file you send one megabyte of information through the connection. Since most web files are relatively small, disk storage and bandwidth are not usually needed in huge amounts. The exceptions apply to sites that get a lot of traffic and contain a lot of large multimedia files such as videos.
It is important to do your research before paying for any of these web hosts, however. Companies exist that can offer affordable web hosting to anyone, but they all offer different plans with different capabilities. It doesn't do you any good to sign up for an affordable hosting plan if it does not give you everything your website is going to need.