What Should You Consider When Hosting A Business Mobile App Backend?

I’ve been looking into the technical side of mobile applications and one thing that seems easy to overlook is the hosting and backend infrastructure behind the app.

The mobile application itself may be fast and well designed, but the backend still needs to handle things such as user accounts, databases, APIs, media files, traffic spikes, backups, and security. This seems particularly important for businesses expecting their application to grow over time.

For example, when planning mobile app development in Dubai, a business may need to think about where its backend will be hosted and whether shared hosting, VPS, cloud hosting, or a dedicated environment makes more sense.

I’d be interested to hear from hosting professionals here: what factors do you normally consider when choosing hosting for a mobile application's backend?

Does the expected number of users usually determine the hosting choice, or do you focus more on API requirements, database usage, scalability, and security?

Also, at what stage do you recommend moving from basic hosting to a VPS or cloud infrastructure?

Would appreciate hearing about the hosting setups others have used for mobile applications and what worked well for them.