Quick Answer
Hosting is renting computer power on the internet to run your website or app. Your code needs to live somewhere that’s always on and accessible to anyone with the URL. Your laptop at home doesn’t count—it’s not always on, it’s behind your home network, and it’s not built to handle many visitors.

Why you can’t just use your laptop

When you run npm run dev on your computer, you can see your app at localhost:3000. But:

  1. Only you can access it - localhost means “this computer”
  2. It stops when you close your laptop - no sleep mode allowed
  3. Your home network blocks incoming traffic - your router won’t let strangers in
  4. It can’t handle load - your laptop will melt if 10,000 people visit

You need a computer that:

  • Has a public IP address anyone can reach
  • Runs 24/7 without sleeping
  • Has fast internet that can handle many connections
  • Is built for this job

That’s a server. And hosting is renting access to servers.

The hosting landscape (simplified)

Tier 1: Deploy in 30 seconds (start here)

These platforms take your code and handle everything else:

PlatformBest forFree tier
VercelNext.js, React, frontendGenerous
NetlifyStatic sites, JamstackGenerous
Cloudflare PagesStatic sites, global speedGenerous
RailwayFull-stack, databasesLimited
RenderFull-stack, databasesLimited

How it works: Connect your GitHub repo. Push code. They build and deploy automatically. Done.

Tier 2: More control, more complexity

PlatformWhat you get
DigitalOceanVirtual servers you manage yourself
Fly.ioContainers that run globally
HerokuApp platform, but getting expensive

Tier 3: Maximum power, maximum complexity

PlatformWhen you need it
AWSEnterprise scale, specific services
Google CloudSame, Google ecosystem
AzureSame, Microsoft ecosystem

Most vibecoders never need Tier 3. Start with Tier 1. Graduate when you hit limits.

What “serverless” actually means

You’ll hear “serverless” a lot. It doesn’t mean no servers—it means you don’t manage them.

Traditional hosting: You rent a server that runs 24/7. You pay even when nobody’s using it.

Serverless: Your code only runs when someone makes a request. You pay per execution. When nobody’s visiting, you pay nothing.

Vercel, Netlify, and Cloudflare Workers are serverless. Your functions wake up when needed and go to sleep after.

Serverless trade-offs:

  • ✅ Scales automatically
  • ✅ Pay only for what you use
  • ✅ No server maintenance
  • ❌ Cold starts (first request can be slow)
  • ❌ Execution time limits (can’t run forever)
  • ❌ Some things are harder (websockets, long processes)

The cost reality

Free tier gets you far: A personal project or early startup can run on Vercel’s free tier indefinitely.

Databases cost money: The app itself might be free, but a PostgreSQL database starts at $5-15/month.

AI APIs add up: Your hosting might be $0, but Claude/OpenAI calls are the real expense. See What is a token?

Scale costs scale: Traffic, storage, and compute all increase with success. A viral launch can blow through free tiers in hours.

Typical monthly costs for a small SaaS:

  • Hosting (Vercel/Railway): $0-20
  • Database: $5-25
  • AI API: $10-500 (varies wildly)
  • Domain: $1 (yearly cost / 12)
  • Total: $15-550/month

How to choose

Just starting? Use Vercel or Netlify.

  • Connect GitHub, push code, it deploys
  • Free tier is plenty for learning
  • Automatic HTTPS, preview deployments, the works

Need a database too? Add Railway or Supabase.

  • Railway gives you Postgres alongside your app
  • Supabase is Postgres + auth + storage in one

Outgrowing free tiers? Stay on the same platform, pay.

  • Vercel Pro, Railway paid tier, etc.
  • Migration is painful—avoid it if you can

Specific requirements? Then research.

  • Need GPU? Look at Modal, Replicate, Banana
  • Need to run in EU only? Check data residency options
  • Need persistent websockets? Fly.io or traditional servers

What hosting actually does

When someone visits myapp.com:

  1. DNS translates the domain to an IP address
  2. The request reaches your hosting provider’s servers
  3. Your code runs (or wakes up if serverless)
  4. A response goes back to the visitor’s browser

The hosting provider handles:

  • Running your code
  • Routing requests to the right place
  • SSL certificates (HTTPS)
  • Scaling up when traffic spikes
  • Keeping things running when hardware fails

That’s a lot of complexity you don’t have to think about.

Further reading