Hi Gowtham,
My Network Places has been renamed to Network in Windows 7; My Network Places is a network browser that displays network connections a computer has. My Network Places can display the other computers, network printers, and other network resources.
My Network Places displays shortcuts to shared computers, printers, and other resources on the network. The shortcuts are created automatically in My Network Places whenever you open a shared network resource, such as a printer or shared folder.
Refer to the articles given below.
Why network?
http://windows.microsoft.com/en-us/windows7/why-network
Setting up a home network
http://windows.microsoft.com/en-us/windows7/setting-up-a-home-network
Hope the information was helpful, if you have any further queries, feel free to post. We will be glad to assist you.