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Service Function Chaining (SFC) is a capability that links multiple network functions to deploy end-to-end network services. By virtualizing these network functions also known as Virtual Network Functions (VNFs), the dependency on traditional hardware can be removed, hence making it easier to deploy dynamic service chains over the cloud environment. Before implementing service chains over a large scale, it is necessary to understand the performance overhead created by each VNF owing to their varied characteristics. This research paper attempts to gain insights on the server and networking overhead encountered when a service chain is deployed on a cloud orchestration tool such as OpenStack. Specifically, this research will measure the CPU utilization, RAM usage and System Load of the server hosting OpenStack. Each VNF will be monitored for its varying performance parameters when subjected to different kinds of traffic. Our focus lies on acquiring performance parameters of the entire system for different service chains and compare throughput, latency, and VNF statistics of the virtual network. Insights obtained from this research can be used in the industry to achieve optimum performance of hardware and network resources while deploying service chains.