You are better off using a video sharing site like youtube and embedding them on your site. That is the cheapest and most effective way, unless the video is to be protected and seen only from your site. In that case, you can use something like Amazon S3. I won’t really recommend getting a good hardware like dedicated server, only for video hosting.
But first, you have to decide what you are going to do. Are you trying to setup a Prestashop based e-com site or something else?
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