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Java has strong support for web development. While Java on the desktop, with the notable exception of Eclipse RCP based application was never a huge success, Java is frequently used at the server side.
If you develop a web application (independent of the programming language your are using), you typically put your web application on a dedicated server (and not your local computer). The web application runs on the server and people can access it there. The server is either a real machine (with CPU, memory, harddisk, etc.) or a virtual server which is basically a machine which is separated by software into smaller machines.
Write standards-based web and enterprise applications that can be accessed from a wide range of clients such as web browsers, mobile devices and more.
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Web services instead share business logic, data and processes through a programmatic interface across a network.