If you want to take part in the internet as a business, information resource, directory, or as a hobbyist wanting to share data, information and knowledge with the many people and communities on the internet, you have to contain this in a central spot on the internet. You have to own a piece of space in cyberspace. 

Web hosting empowers you and anyone with a computer and internet connection to own a piece of cyberspace. In your space, you can have news, bulletins, documents, data, files (your web site) and your own post office (mail server) to accept mail, all in the context of you or your business. This is your space and to get this space you either have to own a piece of the physical internet with a network connection to the internet backbone and computer(s) operating as server(s) offering access to your files and post office, for people on the internet to view your web site or send and receive email with you. 

The cost of owning a direct connection to the backbone and a server dedicated to a web site and email is out of reach for the average business and especially general members of the internet. Even running a web site and mail server on your own computer when it is connected to the internet requires a lot of technical ability and knowledge. The internet itself has to be your business for either of these options to be viable. 

In our modern society, for every person in business or with a career in most industries today, it is imperative to have a place in cyberspace, not just to be competitive but to survive. web hosting companies were born out of this great need to provide an environment for the masses to own a piece of cyberspace, to offer an environment where people could have their piece of cyberspace on the internet 24/7 without the great cost. web hosting companies developed a model where they could split up areas on the servers connected to the backbone and ?rent? this space, cutting the costs across many people sharing the server and backbone connection to the internet.