My hosting plan with Beget is great, but I'm running into issues with the disk quota. The next plan up is quite expensive for only a small increase in storage, and I have plans to expand my site's content. I'm considering either switching hosts or moving to a VPS, not just for more space, but also to speed up the site.
Can a VPS be configured (with $5 or $10 plans) to work faster than my current hosting? Currently, I have 200-300 visitors per day and a server response time of 500ms in Google Webmaster Tools. I want to reduce it to 150ms or less. Would it be worth the effort, or would I not see much improvement in terms of speed? I plan on using HTTP2 + TLS/nginx (with potential caching)/PHP7/memcached/mariadb or percona.

If your main storage is taken up by downloaded files, it may be worth considering moving them to a separate hosting service like Amazon S3, an affordable VPS, or a storage server from Time4VPS. This would allow you to downgrade to a cheaper tariff on your current hosting plan. One of my friends highly recommends Run and has experienced fast speeds using their services.
Reducing your server response time from 500ms is achievable with optimization, but it's important to identify the specific factors that are slowing down your site before taking any further action.

carefully evaluate your storage needs and consider offloading large files to separate hosting services to reduce strain on your primary host. Additionally, identifying and addressing the root cause of slow server response times can greatly improve the overall performance of your site.

The speed of VDS and shared hosting depends on the hardware components of the server and its workload, assuming all other software settings are equal. For instance, a new DELL shared server with an SSD and only a few sites will outperform a non-branded hetzner dedicated server hosting hundreds of virtual machines on SATA servers with high loads.
As a project grows, it becomes more cost-effective to use resources on VPS or dedicated servers since shared hosting doesn't provide access to service configs and, in most cases, requires software tweaks to optimize performance.

 choosing the right hosting plan depends on the specific needs of your project. While shared hosting can be a good option for smaller projects with low traffic and limited storage needs, upgrading to VPS or dedicated hosting may become necessary as the project grows in size and complexity. Ultimately, it's important to weigh the costs and benefits of each option to make an informed decision.

Virtual hosting is a server with ample resources that are limited for the user based on their tariff. In contrast, a VPS server offers users full access to the server but comes with limited resources according to their tariff.

The speed of a website depends on its resource consumption and server configuration. On virtual hosting, the server settings are set by default since many clients share the server. As a result, virtual hosting can sometimes be faster than initial VPS tariffs, which require additional configuration. However, virtual hosting does not allow for radical changes to server settings or optimization work. To maximize server performance, it's recommended to use powerful processors on both VPS and hosting and to choose the appropriate tariff plan based on the desired requirements.

Ultimately, there's no definitive answer on whether virtual hosting or VPS is better since each has its own advantages and drawbacks. The choice between them should be made based on one's goals, needs, and budget. For those who can afford it, renting a VPS or VDS is recommended.

Switching to a VPS can potentially improve the speed of your website, especially if you optimize your server configuration. By using HTTP2, TLS/nginx, PHP7, memcached, and either Mariadb or Percona, you have the opportunity to significantly enhance performance.

However, it's important to note that the actual improvement in speed will depend on various factors, including the quality of hardware and network resources provided by the VPS provider, as well as the efficiency of your website's code and content.

Considering you currently have 200-300 visitors per day, it is worthwhile to explore the option of a VPS. A VPS will give you more control over your server environment and allow you to allocate resources specifically for your website requirements. This gives you the flexibility to scale your resources as your site grows.

When comparing VPS plans, be sure to consider the amount of CPU, RAM, and disk space provided, as these will impact the performance of your website. Additionally, ensure that the VPS provider has a good track record for uptime and customer support.

While it is difficult to guarantee a specific improvement in server response time, optimizing your server configuration and upgrading to a VPS has the potential to bring your response time down to 150ms or less, benefiting your visitors with faster loading times.

to potentially improve the speed of your website:

1. Content Delivery Network (CDN): Consider using a CDN to deliver static content, such as images, CSS, and JavaScript files, from servers located closer to your visitors. This can help reduce latency and improve page load times.

2. Caching: Implement caching mechanisms, both at the server level and through plugins or extensions for your content management system. Caching can help store frequently accessed data and serve it quickly, reducing the load on your server.

3. Image Optimization: Make sure your images are optimized for web use by compressing them without sacrificing too much quality. This can significantly reduce the file size and speed up image loading times.

4. Minify CSS and JavaScript: Minifying your CSS and JavaScript files can remove unnecessary characters, whitespace, and comments. This reduces file sizes and improves page load times.

5. Database Optimization: Optimize your database structure and query performance to ensure efficient retrieval of data. This can speed up database operations and reduce server response time.

6. Content Optimization: Analyze your website's content and structure to ensure it is optimized for fast loading times. This includes minimizing the use of external resources, reducing the number of HTTP requests, and optimizing the order in which content is loaded.

While a VPS offers more control, it's not a magic bullet for speed. Your current 500ms response time could be due to inefficient code or unoptimized assets. Before switching, profile your site's bottlenecks. A VPS won't help if your application is poorly written or you're using bloated themes/plugins. Plus, managing a VPS requires technical chops; expect a learning curve.