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Callout Exception while invoking a web service

Hi I'm new to web services.I tried creating a web service and deployed it in local Apache Tomcat Web server and access it from SFDC.But getting the following error {faultcode:'soapenv:Client',faultstring:'System.CalloutException:IO Exception:Read timed out} Im able to access the web service with in intranet but not from SFDC.May be this is because of the proxy settings or the firewall(im not sure what is the exact reason).Im not aware of the settings(related to browser,configuration etc) to make it publicly available and externally accessible. If this is the problem with the settings can any one please provide me the detailed steps to make it publicly available or any other information related to it. Any pointers will be of great help. Thanks in advance
Yes, your service must be hosted on a server that is accessable from sfdc.

Thanks for your reply.
Can you please elaborate this.
As im very new to this web services concept,Im not sure how to make this web service accessible by SFDC. What servers can we use to make it publicly available?
Any information will be greatly appreciated.
You have to talk to your system admin about this. In most setup, developer desktops are kept
behind firewall and not accessable from outside. There will be few servers outside the company
firewall and you have run your service on this machines.