1. Get a dedicated server
Advantages– Whole server power for you
– You are very flexible in terms of new versions for webserver, database, php …
– There are not other customers which run “bad” scripts which slow down the shop
– You don’t share the same ip, very important for SEO.
If one customer makes a “bad business”, the ip can be blocked by google which affects your search ranking.
My recommendation:I am a big fan of the Amazon EC2 cloud which gives you everything you need (flexibility, scalability, security).
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Amazon EC2 common problems – there’s no swap space
Ubuntu EC2 EBS images don’t come with swap space configured (for 11.04 at least). The “regular” instance-type images do have a swap partition, though only 896 MB.
If some process blows up and you don’t have enough memory or a swap space, your server could come to a crawling halt for a good while before the OOM (out of memory) killer kicks in, whereas with swap, it merely gets slow. For that reason, I always like to have swap space around, even with enough RAM.