I currently have koha running on a "low end vps" 2 cpu cores with 512mb ram which is dynamic to 1gb. with an offloaded mysql hosted database. I currently pay 6.95US$ per month and maybe cheaper ones are available. Performance per dollar is acceptable. rebuilding an index with 45000 items takes about 15minutes. my local installation takes about 10mins. I think you should look up "low end vps box" and see what you can find. Amir