If you get a hosting machine of your own, it will work independently, so it'll have its own Operating System and you'll be able to later install server side applications directly or script-driven internet sites via a hosting Control Panel. Though keeping the Operating System updated is not always considered an absolute necessity, it can be a rather important task for several reasons. A more modern OS version could have better support for specific hardware, so you may get better performance for the internet sites and web apps you install. Your server shall also be more protected because updates normally include security patches which take care of small issues that may enable unauthorized people to access your content. Last, but not least, more modern script versions, which are also released for both increased security and for additional features, might require a later version of the Os in order to work effectively and with their 100 % capabilities.