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I am playing with very limited budget for ecommerce app. I am not sure how the growth pattern will be. So want to start with minimal config with capacity to scale.

To start with support for 5000-7000 unique daily visitors. Expected traffic spikes of around 2000 simultaneous users with some users on product pages, some doing registration etc.

Any suggestions please on what the hardware should look like for dedicated hosting?

If not dedicated then what should be the mininal config on cloud server?

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Welcome to Server Fault! This question was closed because shopping recommendations are outside of the scope of Server Fault. Please ensure you are familiar with the FAQ. – Iain♦ Jan 29 at 11:27
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Host it on your mobile phone ;) – TomTom Jan 29 at 11:34
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closed as not constructive by Jesper Mortensen, Iain♦ Jan 29 at 11:26

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This depends heavily on your language of choice, architecture of the e-commerce application as well as how well you use caching in the application.

Using cloud hosting will allow you to scale without paying for unspent resources, since you can spin up extra servers in minutes and turn them off after the rush hour traffic.

You will have to test the application once it is near completion in order to determine what sort of performance you can get on a cloud server or a dedicated server in order to judge how many servers you will need to support 2000 simultaneous users.

Let's assume for a second that your application is built in Python and your users are all browsing a product page; Assuming you have cached the whole page data in memory, you should have no problem supporting 2000 concurrent users on a cheap quad core server, but this isn't a real world case, so you'll need to test under various conditions in order to determine what sort of hardware power you'll need.

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To further give an idea, the application is built on LAMP stack. Planning to use Nginx as the reverse proxy to apache web server so that static content is served out of apache. Gzip compression will be used for static content served by Nginx. – Andy Jan 29 at 18:19
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