We used an offsite server for hosting this site and some others.
Depending on your needs they can be maintained and serviced by the hosting provider. You will be able to run your e-mail and host your website on it.
There are 3 different types of hosting:
1. Shared Hosting - this is where you share a server with other websites and services. Around $10 a month
2. VPS - Virtual Private Server - This is where you have the entire server and the hosting company will help maintain it. $50-$200 a month depending on your needs.
3. Full server - The hosting company has the server and you are responsible for every aspect of the server. $100-$500 a month, again depending on your needs.
With any hosting company, I would take care of your own back-ups. Even if they say they do them every night. There are many programs that will allow you to save them on your own computer or you can set-up cron jobs on the server.
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