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I believe that VPS is the best option in this case.
Guess you may have a cheap VPS from JustGotVPS.com.
All of their Servers:
are Quad Core Dual Processor Servers
have 32 GB RAM
use 10K RPM Hard Drives for the best performance
use 3ware RAID Controllers with 256 MB RAM
Offshore hosting must have the following feature IMO:
Business-Critical Service Levels
Global DNS Cluster
Enterprise-Class Support (24x7x365)
CMMi Certified Processes
Not all web hosting companies have these things.
I think you may get a dedi for that price. Is location of web hosting company important for you?
I know that Ahosting.com provides cheap dedis, starting from $60 per month.
A2hosting.com also provides dedis for $17 per month.
Try A2b2xs.co.uk as their VPSs are really very cheap.