ORIGINAL:
For example, if multiple applications run on a physical server, there can be instances where one application would take up most of the resources, and as a result, the other applications would underperform.
BETTER:
For example, when multiple applications run on a physical server, it’s possible for one application to consume most of the available resources, and as a result, the other applications underperform.
EXPLANATION:
“When” can be a better choice than “if”. “There can be instances…” is a little wordy; “it’s possible” is a more succinct phrase. The use of the word “would” is wrong and should be removed.