For Shared Hosting, VPS or Dedi?

Please tell me which would be better for hosting multiple small websites with the following resources used:
* Average of 1gb disk space per website
* Average of 2.5gb bandwidth a month per website
* Uses at least any of the following software: Wordpress, Joomla, osCommerce/ZenCart
* Large use of images and PHP

There are two options I am choosing from:

01. Dedicated Server
-Intel i5 Processor (4 Cores / 4 Threads)
-2x500gb SATA 7,200RPM Software Raid-1
-8gb RAM
-1Gbps Bandwidth Port
-$189.50 per month

02. VPS XEN-PV Hosting
-Some Dual Xeon CPU
-400gb Hardware Raid-10
-4vCPU allocated
-4gb RAM
-100mbps Bandwidth Port
-$166.50 per month

It will run Cloudlinux, LAMP, cPanel and Varnish cache. Don't worry who will the provider will be nor who are the system administrators, I have already planned this out and they are trusted and reliable providers.

Please vote on the poll and tell me your opinions below.

Thank you very much!

Anytime you run one of the big-3 CMS' (Wordpress, Drupal, Joomla) or any server intensive PHP application for that matter, you definitely want to stay away from shared hosting. The big questions I have are as follows:

• How many of these "small websites" will you have on the server
• Do you plan to add more
• Are these "small websites" currently online and if so, how many visitors do they get on average?

i rather go to NDC for servers but anyway with anything it is all about the calculation of variables which MFS above is also asking.

Now to add to the above post i have similar questions.

If you all ready have clients lined up and a few of them then yes your going to need some rawr in your server so what you have is fine. But my next thought is that if your a smaller business with fewer clients then i would start with something smaller. But your budget vs income should give you a idea. But just a thought.

I think if i remember softulicious is 8 bucks a year for software installer for cpanel, saves a lot of time setting up new clients. Could be something to look into to help clients

with 2.5 gig traffic per account you would only be able to host small business web sites anything else with half good numbers should chew through that depending on content. any client with half descent traffic should take a boost in GB.

But honestly i can run 50 small sites like i do atm and sometimes they mite do 500mb each others 1-2gig for smaller ones. But i don't pay no where near that so mite wana do some shopping around for VPS to get started on and move to something bigger when more popular.

but yea i would 100% agree on stay away from shared hosting, but then again i will admit i do have my first old server still active for my small web sites and it runs as happy as a duck in water but all the racks are in the same data center....lol

Hold ya nose and give it a go but i would take a smaller server over a bigger one for small stuff. unless your doing HD 1080p images you should be more then fine.

post up if you got more questions.