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Comments
Ok you win with this one. This isn't a common Celeron... is a Sandy Bridge.
Conroe -> Wolfdale -> Nehalem -> Linnfield/Clarkdale -> Sandy Bridge.
4 generations after.
A great idea? No.
Possible? Completely with caveats.
2GB RAM
3TB bandwith
The ram and cpu will handle it if you run OVZ and have a bunch of containers basically doing menial low level tasks. If you're planning on using it during lab/practical time and all your students want to get on and use it in that same hour then forget it, it's not going to work you're going to kill the disk I/O.
Atoms can be quite good, I know of 1 provider who actually has Proxmox setup on an Atom and inside one of those containers has a CPanel install with about 300 accounts. Obviously none of those sites are high-traffic, however it shows that it is possible, just that possible isn't always the best solution.
If you're leasing a server for this you may be better off getting an old box from datashack.
If you're buying a server for this then go get yourself an old $200 HP/DELL/Supermicro server as a couple of old Xeons with a half-decent raid controller in the box will surpass what your current options are.
Yes this would work fine.
Our very first VPS server was a low end server. Wont hold much.... But it will work fine.