I have an already configured VPS server in Hetzner. I’m pretty happy with it. I have it configured with yunohost (a Debian “layer” that allows you to easily install services). Now I’m planning to run a NextCloud service, but my current server is not capable to handle it with it’s current capabilities. For the same price I could scale my current server or spin up a new server with the same capabilities and dedicate it to next cloud.
The disadvantages of spining up a new server, is that I have to configure another server and secure it, but the advantage is exactly on the same side: I will have a second server in case something fails or I want to “scale down” to save costs it will be easier.
Even if I just scale up the current server, I will have to add an extra disk and configure the server to use it, so I’m not sure about the advantages of each one.
Sounds like esxi storage provisioning. You can grow, but shrinking is a whole different story