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Webhost optimization

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What is better, to host multiple website on the same server or to have multiple servers?

We are a small agency with a good number of websites, most of them small php apps and some magento stores. Currently we have a server running all the small websites and a couple of other servers each running a magento store.

I noticed some advantages on either approach. By putting all projects on the same server there is less maintenance needed but less isolation, if one website have a spike on traffic the others could suffer. On multiple servers there is more maintenance and costs more, but there is isolation.

We use linode so adding or upgrading a server is no problem.

submitted by diegoccastro
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