What configuration should a compute node have for a large number of virtual machines (VPS)?

Question

Iron

One option for 300-500 machines (16core x 2hyper-threading x 16 overcommit = 512 machines; 1 - 3 Gb RAM per machine):
Intel Xeon E5-2698 v3 -> 16
RAM cores: 1.5Tb
Will performance be good enough for or should you choose among less powerful processors and less RAM, but more nodes?
Main purpose: VPS hosting
If someone can advise by mail, let's say, I'll be glad.
Thanks in advance for your replies :)

Answer 1

You are missing:
Depending on what will be done on these machines hourly.
Depending on how intensively the cars are loaded during the day.
How do we know what tasks you have planned for these machines?
If you predict the average temperature in the hospital - as a rule, the RAM is more important than the power of the processor.

Answer 2

Still often the disk subsystem or access to it (if over the network) becomes a bottleneck - again, it depends on the load.