I am currently on a shared hosting plan ($10 per month, with Lunarpages). My site is decent usage, about 35-40GB a month in outgoing traffic and about 2700 page views a day. According to my web host, I have been maxing out on resource utilization, specifically on MySQL usage which seems to be more than 2 process average over 24 hours.. not sure what that means... my hosting provider tells me it is number of open connections averaged over 24 hours.
They recommend moving me to VPS ($45 per month) which is okay with us. But one of their support person seems to think than VPS is not really a good option for Java as it needs to much resources. We can't really afford dedicated.
Do you guys have any experience running java/tomcat on VPS (512 MB Memory, 30 GB Disk Space, 1000 GB Bandwidth). Any suggestions are really appreciated.
As per your limitations of funds that you want to expend here you can get that facilities on VPS. But you have to ask your new provider before taking their services. You can visit the offer section of WHT or search on google to have the list of such providers.
I think you should definately check into moving to a VPS server. There are lots of options out there and the host you choose should be able to help you with your resources issue. A VPS will allow you to grow as you need it. What kind of budget are you looking at having? I would think the $19.00-$25.00 range should get you on a strong enough VPS to get you off and running.
Depending on your budget go for Xen VPS or dedi. You can find even quad core dedis for $80 on a promotion. VPS will easily allow you to increase RAM if needed.
You may also check the VPS IO speed and if you SQL queries can be more optimized.