- A
NFV reduces capital expenditure by allowing network functions to run on standard, off-the-shelf hardware.
Correct because NFV replaces proprietary appliances with software on commodity servers, lowering hardware costs.
- B
NFV enables faster time-to-market for new services by decoupling software from hardware.
Correct because new VNFs can be deployed quickly without waiting for hardware provisioning.
- C
One challenge of NFV is the potential performance overhead introduced by the virtualization layer.
Correct because hypervisors or container runtimes can add latency and CPU overhead compared to bare-metal appliances.
- D
NFV reduces the overall security attack surface by consolidating multiple functions into a single physical device.
Why wrong: Incorrect because NFV can increase the attack surface due to shared infrastructure and hypervisor vulnerabilities.
- E
NFV eliminates the need for physical cabling in the data center.
Why wrong: Incorrect because NFV still requires physical network cabling for connectivity between servers and switches.
Quick Answer
The correct answer identifies performance overhead from virtualization as a key challenge of NFV. This is true because Network Functions Virtualization decouples software from proprietary hardware, running network services like routers and firewalls on commodity servers via a hypervisor, which introduces CPU and I/O processing delays that can impact throughput and latency. On the ENCOR 350-401 exam, this topic tests your understanding of the trade-off between NFV benefits—such as reduced CAPEX through cheaper hardware and faster service deployment—and the operational costs of abstraction. A common trap is assuming NFV eliminates physical cabling or shrinks the attack surface, but it actually increases complexity and security exposure. Remember the mnemonic “Faster, Cheaper, Heavier”: NFV is faster to deploy and cheaper on hardware, but the virtualization layer adds performance overhead.
CCNP Network Function Virtualization Practice Question
This 350-401 practice question tests your understanding of network function virtualization. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which three statements about the benefits and challenges of NFV are true? (Choose three.)
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
NFV reduces capital expenditure by allowing network functions to run on standard, off-the-shelf hardware.
NFV offers reduced hardware costs, faster service deployment, and operational agility. However, it introduces challenges such as performance overhead from virtualization and increased complexity in management. Option A is correct because NFV reduces CAPEX by using commodity hardware. Option B is correct because NFV enables rapid deployment of new services. Option C is correct because virtualization can introduce latency and throughput overhead. Option D is incorrect because NFV typically increases, not decreases, the attack surface. Option E is incorrect because NFV does not eliminate the need for physical cabling; it only virtualizes network functions.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
NFV reduces capital expenditure by allowing network functions to run on standard, off-the-shelf hardware.
Why this is correct
Correct because NFV replaces proprietary appliances with software on commodity servers, lowering hardware costs.
Related concept
Static NAT maps one inside address to one outside address.
- ✓
NFV enables faster time-to-market for new services by decoupling software from hardware.
Why this is correct
Correct because new VNFs can be deployed quickly without waiting for hardware provisioning.
Related concept
Static NAT maps one inside address to one outside address.
- ✓
One challenge of NFV is the potential performance overhead introduced by the virtualization layer.
Why this is correct
Correct because hypervisors or container runtimes can add latency and CPU overhead compared to bare-metal appliances.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
NFV reduces the overall security attack surface by consolidating multiple functions into a single physical device.
Why it's wrong here
Incorrect because NFV can increase the attack surface due to shared infrastructure and hypervisor vulnerabilities.
- ✗
NFV eliminates the need for physical cabling in the data center.
Why it's wrong here
Incorrect because NFV still requires physical network cabling for connectivity between servers and switches.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related 350-401 NAT questions on configuration and troubleshooting.
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Network Function Virtualization — study guide chapter
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Network Function Virtualization practice questions
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FAQ
Questions learners often ask
What does this 350-401 question test?
Network Function Virtualization — This question tests Network Function Virtualization — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: NFV reduces capital expenditure by allowing network functions to run on standard, off-the-shelf hardware. — NFV offers reduced hardware costs, faster service deployment, and operational agility. However, it introduces challenges such as performance overhead from virtualization and increased complexity in management. Option A is correct because NFV reduces CAPEX by using commodity hardware. Option B is correct because NFV enables rapid deployment of new services. Option C is correct because virtualization can introduce latency and throughput overhead. Option D is incorrect because NFV typically increases, not decreases, the attack surface. Option E is incorrect because NFV does not eliminate the need for physical cabling; it only virtualizes network functions.
What should I do if I get this 350-401 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related 350-401 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
About these practice questions
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Last reviewed: Jun 18, 2026
This 350-401 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 350-401 exam.
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