I have nextcloudAIO running on a VM with 6 vcpu, 16gb ram. No issues with performance.
The root partition is on an nvme drive, the data partition is on a HDD raid 1 array.
That VM is hosting another few services like nginx proxy manager, Heimdall, and a few other things I forget at the moment.
Never have any issues with performance
I’ve put a few smart lights/switches/sensors/power points in at home. Definitely helps mum as we can have wireless switches for the lights, and motion sensors to turn the hallway lights on automatically as well.
For ALL of them, I make sure there is a manual control that will work as a backup regardless. Even if a smart light is “off” due to the motion sensor not detecting movement, all you need to do is turn the old regular light switch off then back on and the light will default to being back on.