The server should give you plenty of power for what you are looking to do, but as others mentioned that 1 TB drive may become a bottleneck. A high storage SSD would be quite expensive. I would recommend either putting SATA or SAS disks into a RAID config.
It is probably quite read-intensive - so the more read you can throw at it the better - so minimal costs - migrate from what you have to raid1 and you will see improvements. Beyond that, you could go to Raid10 or SSD drives.
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With 10 users you should be good, see your HDD IOPs. Regular 7200RPM drives should allow around 110 random read operations per second. For Video streaming HDDs are able to use read ahead, so you should be good for now.
I would suggest you implement HW RAID 10 with 4 x 500GB or 4 x 1TB 7200 RPM SATA if you can. You need to balance your speed requirements with your storage requirements. Another, non raid solution to look at is implementing a memory caching proxy on the node. This way repeated requests for the video files would go straight from memory for subsequent hits bypassing disk activity. Just some food for thought.
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Sorry, but ignore all the fear mongering here. If you can't get 10 concurrent users on that machine spec then you're doing something very very wrong. That spec is more than enough for 10 concurrent users of a video type site.
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