Fug, you're paying for all of that. When a RAID drive dies, you're paying to have it replaced, for instance.
Having your own is cost effective when it brings in zero cash. Like let's say you want your homepage to be some unique site that you can reach anywhere, that has all the links you want, and is password protected. You make that the default page in your browser on your laptop or whatever, and have protected access to it from anywhere in the world.
You can get hosting for 10 bucks a month or less, so once you have people connecting to your stuff, it's worthwhile to rent space. That way you have very little maintenance, security is not too much of a concern and you don't have to worry about hardware dying.
The prices are no different than any dept. store or different chain markets. It's up to the big wigs on what they want to charge.
I host my sites through rented space. I used to host at home, however. One issue anyone hosting nowadays will run into is ISP port blocking and TOS violations. Most ISPs now block 80 and other common ports coming from your home. The nomemclature is like this, as example:
IP: 4.4.4.4
www port is always: 80
The resulting socket (that is the term used for this result): 4.4.4.4:80
That socket is implied in
http://4.4.4.4, which is why you never see
http://4.4.4.4:80
Now let's explain DNS. That IP, which is just a bunch of numbers, no one will not remember for a specific site. If yahoo.com goes to 209.131.36.159, you are not going to remember that sequence to save your life. So, we assign a name. Domain Name Service handles this.
The record is propagated from the SOA (start of authority) and spreads across the world through DNS servers. Once finished, anyone trying to visit yahoo.com will point to 209.131.36.159 automatically. Now when you visit these:
http://209.131.36.159
http://209.131.36.159:80
http://yahoo.com
http://yahoo.com:80
You get the same result.
I'm running out of time, so post questions from this point and we'll answer them
Oh and one more thing. I can't leave without posting this. IF you set up a home server, you MUST, yes, MUST, have 2 routers. Otherwise your internal LAN will be compromised. The question will be not if, but when. I can promise you, it WILL happen if you have them all on one network. Use the attachment in the next post as a guide.
2 x 40 dollar routers
1 webserver
whatever PCs
a little cabling
free software (apache/unix/linux/etc are free). Apache can also be run on windows, and several all-in-one packages have been made just for this. Lookup WAMP, XAMPP and appserv.