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A server is what connects you to the web. You could not be looking at this site if your internet service provider did not have a server, or hundreds of them connected together for that matter. So now you are asking yourself...then why do I need to have a website on another server? The answer is simple. Your internet service provider usually only allows you to get into cyberspace (the web), and check your email etc. When you decide to buy a domain name, you need someone to host this domian name for you. This particular type of server, allows people to buy space on the server so you can upload (when you send files to someone else vs. download, when you get files from someone) and store your files there.
You can make your own computer a server...but do you want hundreds, perhaps thousands of people looking around on your computer? Probably not. That is why you need to buy hosting.
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