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Reference: AWS CDN Instance connection limit, EC2 Bandwidth Limit .
Budget hosting usually means hundreds of sites or dozens of VPS / reseller accounts hosted on same server.
To host hundreds or thousands of streams simultaneously, servers with 1000Mbps connection and at least 8 Gb RAM are required (16-32Gb recommened if hosting both web and rtmp).
It's important to have the server in a reputable data center with high connectivity so all your users can connect to the server at good speed, from their different networks and providers.
On regular http requests it's not an issue if host does not respond for 1-3s but for rtmp live streaming it's a big issue because of dropped frames and live latency.
Live video streaming and interactions it's a premium feature that usually requires a dedicated server.
For most integrations that involve video recording and archiving, HTTP and RTMP must be hosted on same physical server so web scripts have access to the video files saved by rtmp server for management and conversion.
The hardware configuration depends very much on the number of website members and visitors and also on website settings and target, so we cannot give you exact requirements.
If there are video conference rooms where each user transmits 1 video and sees other 3 videos, 4 streams per user will be required.
To evaluate server and network capacity when choosing a server, consider monthly transfer available.
In example, Video Whisper dedicated streaming servers are setup to allow 100Tb/month data traffic which means around 308Mbps average continuous transfer.
We recommend using a RTMP service installed directly on a dedicated server, even if service is shared.
We don't recommend a RTMP service installed on a server share.