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Hosting
Servers are powerful computers which have large hard disks or multiple hard disks. Space on them can then be rented to those who want a website.
Every server which is on the internet has its own unique Internet Protocol (IP) Address. A good analogy of a server would be an apartment building. Each apartment would have its own (IP) address, based upon the building it is within. If you were to rent an apartment it would be like setting up an address on the internet which can be accessed via the website URL.
Web hosting comes in many forms. Most packages will come with various capabilities for each. Some will allow scripting, others may have extras added in such as forums, billing, guest books etc.
Prices for web hosting can vary immeasurably. Some hosts will allow you to have a free website, although these usually come with adverts which may appear on you site as banners or skyscrapers, and as such are beyond the users' control. To have a website which is free of adverts, a fee is usually applied per month. Over the course of a year this can be a small sum for a small website, or many hundreds of pounds to host a website which has a content managed system, or maybe e-commerce.