Svchost.exe is a core system file. It contains the services used to run Windows properly. It should not be deleted. It must be located in C:\Windows\System32. Otherwise, it's 80% dangerous. Some attackers disguise their malware as svchost.exe.
If you kill the process, you kill all Windows Services, stopping the audio engine, the RPC service and/or the DCOM service, and the power service. You will not be able to sign in or out, and you can't shut down, sleep, or restart. In some cases, a BSOD will come a few seconds later. In Windows Server, a BSOD will come immediately.
What happens when you kill svchost.exe in Windows 7.
What happens when you kill svchost.exe in Windows XP.
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