Email hosting and SMTP hosting are two different services that are sometimes confused with each other. Email hosting is a service that allows you to host your email accounts on a server. It provides you with an email server that you can use to send and receive emails. SMTP hosting, on the other hand, is a service that provides you with an SMTP server that you can use to send emails.
The main difference between email hosting and SMTP hosting is that email hosting provides you with an email server that you can use to send and receive emails, while SMTP hosting provides you with an SMTP server that you can use to send emails only. That said, some SMTP hosting services will include a component for receiving email related to the messages you are sending like bounces or unsubscribe requests, but the focus for an SMTP host remains outbound.
Why would you need an SMTP hosting service?
SMTP hosting is typically used by businesses that need to send large volumes of emails usually transactional or marketing in nature. It is also used to send emails to a large number of recipients. Email hosting, on the other hand, is used by businesses, individuals and organizations that send normal, back and forth communications from one client to another.
It is important to note that SMTP hosting is not a replacement for email hosting. SMTP hosting is a service that is used in conjunction with email hosting. All email providers limit the volume of messages that can be sent using their email hosting service and will require you to use an SMTP service for any bulk emails. If you want to send and receive emails and do not have a requirement for bulk sending, you will be just fine using an email hosting service. If you want to send emails only or have a specific requirement to send bulk emails, you can use an SMTP hosting service.
So, in conclusion, while email hosting and SMTP hosting have some overlapping features, they have uniquely different purposes, and each should be considered separately by businesses and groups sending and receiving emails.