Is hardware transcoding necessary on XBox One S client

More or less what it says in the title.

Longer story - my Windows Home Server 2011 appears to be on its last legs, so I’m looking at a NAS, probably a Synology. Money’s a little tight, and I’d like the cheapest solution that’ll give me a good experience.
My video files are a mix of mkv and Mpg, and the Xbox has been playing it all like a champ. I don’t currently have a 4k TV. I usually watch Plex content through my Xbox One S, and occasionally on my desktop.
I’ve read through the FAQs and such here, but haven’t really seen this addressed. Do I need hardware transcoding, or will just about any NAS do, so long as I can install the Plex server to it?

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