Most likely yes. How many instances ? it depends.
It is a windows process that calls different DLLs to provide different services. However, it is a legitimate windows process only if it is running from C:\\Windows\\System32\\. Otherwise it is most likely a virus or some kind of malware.
Take a look at this:
<a href=”http://www.fileinspect.com/fileinfo/svchost-exe/”>svchost.exe. What is it?</a>