To host a website on the internet, an individual or company would need their own computer or server. As not all companies had the budget or expertise to do this, web hosting services began to offer to host users' websites on their own servers, without the client needing to own the necessary infrastructure required to operate the website. The owners of the websites, also called webmasters, would be able to create a website that would be hosted on the web hosting service's server and published to the web by the web hosting service.
The user gets his or her own Web server but is not allowed full control over it (user is denied root access for Linux/administrator access for Windows); however, they are allowed to manage their data via FTP or other remote management tools. The user is disallowed full control so that the provider can guarantee quality of service by not allowing the user to modify the server or potentially create configuration problems. The user typically does not own the server. The server is leased to the client.
^ March 16, 1992 memo from Mariam Leder, NSF Assistant General Counsel to Steven Wolff, Division Director, NSF DNCRI (included at page 128 of Management of NSFNET, a transcript of the March 12, 1992 hearing before the Subcommittee on Science of the Committee on Science, Space, and Technology, U.S. House of Representatives, One Hundred Second Congress, Second Session, Hon. Rick Boucher, subcommittee chairman, presiding)