Kiran:
Yes, you can definitely use Alfresco to both manage and deliver your website. Our general model is to have a single Alfresco instance that acts as your CMS, where a web project acts as a container for your entire website/web app and where individual sandboxes represent virtual staging servers for sets of changes you are developing or staging for release to the run-time site. A second Alfresco instance acts as your CDS, where specific snapshots of your site or app from the CMS are transactionally deployed to the run-time environment. You can deploy also with 2.1 to a remote file-server if you are building and deploying a simple static HTML site.
I recommend reviewing the Eval Guide that is available in our Content Community. Please let us know if you have any further questions.
Kevin