The difference between a standalone and a managed web installation is one of convenience and peace of mind. For the do-it-yourself expert and code enthusiast, taking a standalone option means the freedom to build it how they like, applying patches whenever necessary, and maintaining control over every aspect of the website/s. For the busy business-person, or inexperienced web user, the managed option frees them from the mundane tasks of creating databases, installing WordPress trees, applying security patches to plugins and themes and core code, and lets them concentrate on what they do best, delivering the website content itself.
A managed WordPress site means we take care of; installing WordPress itself, creating the relevant databases and linking them correctly, ensuring your domains point to the correct IP address and web server installation code base, taking care of plugin upgrades and theme upgrades, handling core patches and security updates.
All of this provides the client with peace of mind, knowing the system will be running even when they're on the beach. (It's not necessary to be on the beach, this is just a hypothetical example of what is possible.)
There is never a single solution for everybody, just like there are hundreds of thousands of garages, doctors and food stores, around the world, so there are multiple web hosting solutions. It can be a confusing world, so it's important people to choose a web host where they can feel comfortable.
This is why at the WebFE we like to Keep It Simple ...!