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Hardware requirements for two Magento 2 sites in 1 hosting account?

    1st Magento version 2.4.2-p1
    2nd Magento version 2.4.5-p1
 about 2416 products on each Magento install

I have two Magento 2 sites both running in a separate account as part of my 1 hosting account = one that is production and the other is being developed and eventually, I will switch everything from the first site to the 2nd and shut the first site down. There are about the same number of products on both = 2416.

We’ve had some performance problems and our hosting company kept telling us to speak to a certified Magento developer in order ‘to optimize Magento’ or upgrade. I’ve done some optimisations myself but it didn’t seem to help so we kept upgrading and ended up with the following:

RAM: 32 GB
CPU: 8 Cores
Storage: 640 GB SSD
Bandwidth: 16 TB
Network Out: 7000 Mbps

The trouble is that it costs almost $300/month and I can no longer afford that.

The lower VPS Cloud package has the following specs:

RAM: 16 GB
CPU: 6 Cores
Storage: 320 GB SSD
Bandwidth: 8 TB
Network Out: 6000 Mbps

Am I safe to downgrade to the lower package or am I going to have performance problems? I wonder if the performance problems I’ve had previously could do with the fact they ran off-site backups every day and the backup supposedly took something like 22 hours! So I would think that messed with my perfomance?