That's a very large number of concurrent users. Even for a school with 50,000 students, there'd only be perhaps two or three hundred concurrent users maximum, with perhaps 4-500 during peak times. Your typical 2gig dual processor PC should do the job for 4-500 concurrent users.
Concurrent users are all clicking at the exact same moment. You might have 10 times that logged in, and perhaps 10 times that not logged in.
Nowadays with processing power as cheap as it is, a few thousand dollars US should handle just about any situation. Beef up the server a little with some extra RAM, and be connected to the Internet through a "fat" connection, and you'll be fine handing a 50,000 student school.
You can also turn on the accelerator by defining a cache directory in the ATutor system preferences, which speeds things up dramatically, though most find they don't need it. All of the repetitive db queries get cached, greatly reducing the load on the server.