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After doing more testing, I decided to go ahead and provide shared hosting for Mastodon instances.
This will be a trial but unless something goes horribly wrong, I believe that I can price it at €5/month for an instance of up to 100 users.
This can greatly diminish the cost of running small instances and remove the technical barrier from everyone who wishes to run their own Mastodon Instance.
Let me know what you think

@hugo BW cost may be indep of number of users, how do you protect yourself against that? TIA

@Aswath I don't think I understand your question.
How do I protect myself against what?

@hugo excessive consumption of bandwidth since the user has too many followers spread over a large number of instances

Hugo Gameiro @hugo

@Aswath Haven't found that to be a problem. I don't pay for traffic and have public guaranteed 500mbps on every server. That is a lot of bandwidth and I doubt any instance (<1000 users) will use all of that. Still, I host everything in Cloud and with load balancing you just need to put another machine up and you keep running. Have you experienced problems with bandwidth and Mastodon instances?

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@hugo I was not thinking of BW capacity, but clod provider charging for consumed bandwidth. I do not have direct exp w Masodon; I am exploring self-hosted comm (V & V) which could consume considerable bytes.