This doesn’t harm in most cases, but still is worth keeping in mind that if you have a 256MB VPS, it is a 1/128 of the 32 GB server and thus its network bandwidth is usually limited to 1/128 of 1 Gigabit which equals 1 MB/sec.
Various gateway servers, balancers, caching proxies don’t need CPU power and RAM, so small 256MB VPS choice looks natural. This is where the problem may arise.
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