It's part of windows, but viruses do use it to hide, too. I think it's mostly uses for internet/networking functions.
I had a problem with that executable once. Turned out to be a memory leak due to SBC's install program of their 2wire modem/router that they sold to me.... Somewhere, between now and then, (been using SBC DSL service for about 7 years.), they finally patched the software. But until then, I had uninstalled that 2wire program so that the SVChost executable would no longer bloat itself to massive memory sizes. (it was eating all my system ram...)
From what I could tell that 2wire program was a firewall program that also was able to adjust the (firmware?) embedded options for the modem. Such as changing the WEP password, turning on and off the wireless function, and such things. Really had nothing to do with my actual DSL service. So, I uninstalled it....
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