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Have used OVH quite a bit over the years - can't really beat them on price or quality IMO

Flexibility = you can have a monthly rolling contract with them

You can also choose to go with either an 'unmetered series' (i.e. unlimited bandwidth but on 100MB connection) or 'metered' (1GB connection but capped bandwidth with extra cost for additional transfer).
 
tsohosts.co.uk are excellent. We use them for our dev servers and the support is superb. We had an issue one time and sent them a ticket at approx 12am, for them to reply 3 minutes later with the solution!
 
It sounds like any VDS would be fine - I tend to recommend a minimum of 1Gb RAM if you're doing anything serious though but of course a VDS can be upgraded/downgraded at any time.

Be careful that you choose the right type of VDS - some 'VDS' products available are based on cheap, unreliable 'cloud' systems and others aren't 'VDS' systems at all in the common understanding of the word.

Do quiz any host - they should be happy to tell you they run VMWare, or Xen, on XYZ hardware et cetera :)
 
I never really get what people mean when they say cloud, it seems that It can mean a lot of things. Your data is in the cloud, cloud hosting, cloud based setup, cloud cake.
 
Cloud means that you don't physically own a specific server. Virtualisation is probably a more historical term. The advantage with cloud hosting is that it's much easier to change the hardware as it's just a case of a few mouse clicks for the provider to change disk space or memory allocation.

Unless you're planning on having to increase your server specification quickly and relatively often, then it's most likely overkill - unless it's cheaper, I haven't looked at prices for cloud servers.
 
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