With what you have told us, I would do Option 1 because the Process, RAM, and Bandwidth are better. However I would upgrade the Hard Drives to the fastest I could get and I would want RAID 10 running on the data drives with a mirrored OS. I would use the Linux OS.
You have to consider the latency that will be from Romania to your location versus the latency to the Netherlands for your primary user base. You could do a network trace to determine this.
Have you also considered using a Content Delivery Network? This may help the service that you provide to your end customers.
My Primary Audience would be from US and UK. Basically I get sudden surges in traffic on specific days and my current host crashes. So I need the configuration to handle such sudden increase in traffic.
I’d install your site onto a test provision of a server that you plan buying, then load test it to your predicted maximum likely level too ensure it’s fit for purpose. A good reason to use virtualized servers over a dedicated server is that you can switch an instance on for a few hours to do this then switch off at very little cost, where most dedicated server companies will want a setup fee that rules this out.
First are you sure that your application is NOT getting DDOS attacked? If this is happening your going to get this problem wherever you host it. Most applications/infrastructures are designed to handle DDOS attacks, however it does not sound - if you site is being attacked - that yours responds when the DDOS type traffic appears.
I’m about to go with a dedi from WebHostingBuzz (data centers in the US and Europe) which offer a nice range of performance and options to suit at a price which seems to me to be lower than standard (using great hardware). For instance, their basic dedi (Option 1) offers:
SandyBridge Xeon E3-1230 4 x 3.2Ghz 8MB Cache
Supermicro 1u Rackmount (supports 4 HDDs)
4 IP addresses included
Tier IV Dallas datacenter
8GB DDR3-1333 ECC
1 x Seagate 1TB 6Gbps SATA 32MB Cache
Choice of Operating Systems
FREE Blesta Billing Software
They’re advertising a sale price now at WebHostingBuzz Dedicated Servers but I don’t know how long that will last. That page has a link to options (“Service Upgrades”) which you may also be interested in using.
I’d also suggest that you get your application and server fully optimized, which will require the services of a good systems administrator and developer.
Most hosting companies supply servers with the default mysql and apache configurations, which aren’t optimal. Most applications don’t use caching as much as they should, or have the database structure or queries as optimal as they could be.