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There are indeed several options for improving magento performance. These are some of the options we, Pro Contractors, have chosen to utilize for optimizing magento. The following assume that you have at least shell (SSH) access to your hosting provider. Also it is strongly recommended to use a hosting provider that can garantee you magento store being located on hardware that is dedicated for hosting magento application.
CentOs 5.3 x86_64 - 2.6.18-128.2.1.el5
Apache 2.2.3 64-Bit - Prefork_MPM
MySQL Ver 14.12 Distrib 5.0.83 x86_64
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Zend Engine v2.2.0
eAccelerator v0.9.5.3
ionCube
PHP Loader v3.1.28
memcached 1.2.5
Magento Community Edition 1.3.x