Hosting/Server Setup for hosting images

Avg Bid (CAD)
Project Budget (CAD)
$100 - $500

Project Description:
I'm looking for some advice and may be some individual who can help me setup image hosting server or someway to host images.
Simple way to understand is thinking of SmugMug, Flickr, Picasa and Zenfolio.
These are all image hosting websites.
What do you recommend? The idea is that user will sign up by purchasing a subscription(its setting in place at the moment) and then will upload images from their accounts, all images will go to secure server so that the user can show to their clients.
Restriction: This is only for photographers, so user who buys subscription are photographers, they are not every day users or general public.

I looked at dedicated servers and hostings servers but I cant decide.
What do you suggest?
what do you recommend?
what is the possible solution?

All programming and coding is performed on PHP language, so Linux is used as OS.

Skills required:
Database Administration, PHP, Web Hosting, Website Management
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