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As panel maybe keyhelp?
And I would say multiple VPS that you don't go completely offline if your node goes for holiday.
I would say a VPS or dedicated server recommendation depends on the current usage - as some larger VPS servers will easily handle a lot of sites etc. Most of the time the biggest improvement can be going from a SATA based server to a pure SSD server
For the control panel, do the customers have a control panel already that they use? If so I would say might want to consider the same unless it's an old and unsupported CP but would recommend DirectAdmin (cPanel could get costly depending on your budget)
You need to check what kind of websites are hosted there. Almost any modern VPS can handle 1250 single page blogs for example.
I wouldn't recommend a VPS to host 1250 sites, unless the VPS offers key advantages over a dedicated server.
If those sites are typical websites, a dedicated server with a recent Xeon CPU with 8 cores 16 threads, 32 GB RAM, SwRAID1 2x1TB SSD should easily handle them. However, if they are resource hungry, it would depend on the usage.
If you need reliability, go for Cloud. A decent dedicated will be much cheaper though.
Get 3-4 Cloud Servers (i.e. from a reputable/high available provider) that offers something with DirectAdmin, plesk or cPanel. If you need any help configuring let me know.
What are the usage stats on the sites? For peace of mind, just spreading them out over multiple reseller accounts might be the simpler option.
In the Vps the cpu shared with others, the host provider may suspend your vps if you abuse cpu usage. Buy dedicated server, everything is dedicated for you. it's the best option. You can find cheap dedicated server from 60 - 80 euro / month for low traffic sites
What is the current VPS's load looking like, how much storage do you need?
Choose one you are comfortable managing, is there a current panel in place?
Since they don't seem to see much traffic get a raspberry pi and host them at home.
For some seconds I feel like at WHT... :shrug:
These all seem like really important questions versus just how many sites.
1250 sites with 1 hit per day: host it on shared hosting.
1250 sites with 1 million uniques per hour: to the cloud!
In majority cases the cloud is fake imitation of VPS services!
If your websites are very popular and you do get millions visitors so a several dedicated server will required, if it’s just one popular website and the rest just one hit per month, so separate these website and host on separate machines.
Large wordpress websites often occupy unusually high CPUs, you need to pay attention to this
125 cloud VPS with backup, runcloud or gridpane, 1k USD/month
How much do you charge customer per site?