It could be okay to start wit, but the main concern is DDoS attacks which is very usual on pools. and you might need to upgrade to dedi later when grew up
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I know for instance that DO ( digital ocean) would allow me to grow enormously but is there a way to enhance an average VPS/cloud/etc with DDOS protection with something like prolexic?
If so how much would the later might cost?
You should ask first your vps provider if they allow mining. There are providers who doesn't allow that on their vps, if they host many vps per physical server. Mining has relatively big impact on the entire node's performance.
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Many providers will kick you off for Mining. We've had a number of customers sign up for this purpose and have huge CPU load spikes which of course isn't fair on other users on the same host machine since they end up with horrible performance.
Make sure to contact the provider in question before signing up, even if nothing is mentioned in their ToS/AUP.
I would rather go for a dedicated server. As others have mentioned, there is a good chance that the VPS provider will dislike the permanent resource usage that a mining pool generates and eventually suspend your VPS. Another option would be to setup your own cloud, ie. as soon as the first dedicated server is overloaded, add a second one. If you don't want to configure some sort of cloud with load balancing, some anti DDoS providers might as well offer load balancing from their end, so you would only have to keep 2 or more servers in sync and the anti DDoS provider would load balance the TCP connections between them.
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