I agree with what everyone says, it is a matter of need vs economics. If you are asking the question then it is probably about time to move. It is the normal thing though, just because you have 500k visitors a month does not mean a massive load on the server, but if your host provider is saying time to move then you are putting a strain on resource.
There are some great deals to be had out there, rapidswitch were doing 1U space for about 50 quid a month with unlimited bandwidth, you provide the server. They are speed tested and one of the fastest hosts in europe. Shop around, check bandwidth allowance and do a network check on them. Also check their resilliance.
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SEO, SEM and Usability studies, independant consultant.
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