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My server is i7 4790 with 32Gb of RAM. I have about 10 people using it now with a fiber connection of about 970mb up and down. I do not do 4K but with 1080p I have not had any issues. I have had a max of 5 transcodes going at once without any problems.
I have two different versions of all TV shows. One for me and one for users to stream. I like 5.1 or 7.1 sound and that always forces a transcode. With TV shows I usually do not see transcoding going on because of the different versions but movies I have not automated and conversion format yet so I do see those transcoding.
The biggest issues I see is with the players and users not understanding how they can control the settings on their end. Educate them and don't use Xbox One as a streamer, POS. Waiting for the new shield to come out and then thats gone.