I don't quite get the "in software" part. I assume you mean that the video needs to be transcoded to h.264 on your server for their client to play it.

The way I mostly solved this is to ask people to install and use the native app (jellyfin-media-player or Android app) whenever possible, as it is compatible with more codecs.

You can also configure HW acceleration for transcoding, a decent GPU should have no trouble encoding a few h.264 streams in real time.

And lastly, you can play with distributed versions of ffmpeg, since Jellyfin calls ffmpeg. There are multiple options, such as https://hub.docker.com/r/bitwrk/jellyfin-rffmpeg (I never used it myself, though).