Install MS SQL Server Web Edition on a server with MS SQL Server Express

Hi,
We have a VPS cloud server on which there is an instance of SQL Server Express.
Since we need more resources, I consulted with the hosting provider and they offered us to use SQL Server Web Edition (SPLA Lisence).
My question is - the hosting company claims that it is not possible to keep the SQL Server Express instance along side with the SQL Server Web Edition, and that we must do ugrade and remove the SQL Server Express instance.
This will cause us a long downtime, since there are multiple DBs on the SQL Server Express that we will have to backup, and then restore them one by one on the Web Edition after it is installed.
Is this correct? Can't we install the SQL Server Web Edition Instance and gradually move the DBs to it?
Thanks!

The 50 instances per machine is a setup check rule as opposed to a hardware limitation. From this perspective, there would be no difference between a VM or a physical server.
In the line from the documentation that you referenced, the "stand-alone server" refers not to VM vs. Physical, but instead a stand-alone instance vs. a clustered instance. That is, in a non-clustered environment, you can have up to 50 instances.
In the past when I helped with setup testing and automation, we'd run VMs with 20-ish instances, including instances from 2012, 2008 R2, 2008, and 2005, including multiple editions (Enterprise, Standard, Express, Web, etc.).
One other potential option if your provider cannot support multiple instances is to do an in-place upgrade (edition upgrade) of your existing Express instance. This would retain the current instance and upgrade the existing instance from Express
to Web without the need to migrate databases. Here is more info on the supported version and edition upgrade paths (including Express to Web):
http://technet.microsoft.com/en-us/library/ms143393.aspx
Thanks,
Sam Lester (MSFT)
http://blogs.msdn.com/b/samlester
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