In a nutshell, an email hosting provider is a company renting out space in one of its servers for users to store their emails. There is a large pool of email hosting services out there for businesses to pick and choose from. Professional email hosting providers usually vary in terms of what they offer, such as disk space, trial period, pricing, supporting authentication protocols, and so on.
Perhaps the only case where an everyday regular person pays for any email service is when you have a ton of vacation photos that force you to get a family email hosting plan. However, if you are a business that deals with sensitive data, and with today’s strict privacy laws such as GDPR most data are sensitive, you most probably do need a dedicated email server hosting. After all, no one wants to pay a hefty fine for a data breach or unintentional mishandling.