Earlier quoted context omitted.
If you want to provide uninterrupted service to your clients you’ll have to spend some $. You want to have redundancy, machines hosted in different different locations, backup prod servers, monitoring, analysis tools. Even if it is for 1k monthly users, if you want reliability - it will increase the costs.
I beg to differ. In my experience, the complicated setups that are justified by the argument of "reliability" have more downtime then a single VPS. The reason is probably that there are more moving parts and more has to be maintained / can go wrong. These days, a single VPS in the right datacenter has excellent uptime.
I've also had very high reliability rates with a single VPS. They've actually given me less downtime than AWS services at times.