Abstract: Method and a server system for tuning a performance of an application are disclosed. A plurality of traffic flows associated with user requests related to the application are monitored for a predefined sampling period. A traffic flow associated with a highest total volume of communication is identified from among the plurality of traffic flows. The identified traffic flow is used for selecting corresponding flow segments in a decreasing order of respective individual volume of communication. For each selected flow segment, a pair of microservice instances is identified. It is determined whether at least one microservice instance is capable of being relocated from a respective current host to another host for achieving at least one predetermined performance objective. A redeployment of the at least one microservice instance is facilitated if the at least one microservice instance is capable of being relocated from the current host to another host.