I'm considering moving from commercial cloud storage to a self-hosted Nextcloud instance for a small team.

I'd like to host around 500 GB of dоcuments and photos, with approximately 10 users accessing files regularly. I'm looking at a VPS with 4 vCPU, 8 GB RAM, and 100 GB NVMe for the application, while keeping the actual files on external storage.

HostPro.com is one of the providers I'm comparing. Would this setup be reasonable, or would it make more sense to use a dedicated server for Nextcloud? I'm also interested in how others handle backups for this kind of deployment.