What is Web Hosting? – Web hosting is the most common way of hosting on more than 99% of web sites. This implies that a hosting company has one or more servers (computers that are constantly connected to the Internet running a server software such as Apache or IIS) that support the operation of a large number of websites. Unless a web site is particularly busy or needs a lot of bandwidth, this is the most cost effective way to own a real website. You can have your IP address hosted and not be distinguished from the users.