The answer is a centralized data policy configured on vSmart. This is correct because an SD-WAN centralized data policy allows the controller to enforce application-aware routing decisions across the entire fabric, matching real-time video traffic and steering it over the most reliable transport based on loss and latency metrics, while a separate rule directs all other traffic over the least-cost path—all without per-router configuration. On the ENCOR 350-401 exam, this tests your understanding of how vSmart applies centralized policies versus localized control policies; a common trap is confusing data policies (which affect traffic forwarding) with control policies (which influence route advertisement and path selection). Remember the key distinction: data policies steer traffic flows, control policies shape routing tables. A useful memory tip is “Data directs, control connects”—data policies decide which path traffic takes, while control policies decide which paths are available.
350-401 Network Function Virtualization Practice Question
This 350-401 practice question tests your understanding of network function virtualization. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
An architect is designing an SD-WAN policy to ensure that real-time video traffic from headquarters to branch offices is always sent over the most reliable transport, while all other traffic uses the least-cost path. Which type of policy should be used to achieve this?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "least"
Why it matters: You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
Clue: "always"
Why it matters: Absolute qualifier. An answer using 'always' is only correct if there are genuinely no exceptions — absolute statements are often wrong in networking.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Centralized data policy configured on vSmart.
A centralized data policy configured on vSmart is correct because it allows the SD-WAN controller to enforce application-aware routing decisions across the fabric. By matching real-time video traffic and steering it over the transport with the highest loss/reachability metrics (most reliable), while using a separate rule to direct all other traffic over the least-cost path, the policy is applied globally from the vSmart controller without requiring per-router configuration.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Localized data policy applied on the vEdge router.
Why it's wrong here
Localized policies affect local forwarding but cannot control path selection across the overlay.
✓
Centralized data policy configured on vSmart.
Why this is correct
Centralized data policy on vSmart controls overlay path selection based on application and SLA.
Clue confirmation
The clue words "least", "always" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Centralized control policy for route manipulation.
Why it's wrong here
Control policy affects routing information, not per-packet path selection.
✗
Localized app-route policy on the branch vEdge.
Why it's wrong here
App-route policy is localized and cannot enforce centralized path decisions.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests the distinction between control policies (which manipulate routing information) and data policies (which manipulate packet forwarding), and the trap here is that candidates confuse centralized control policy with centralized data policy, thinking route manipulation can achieve application-based path selection when it cannot.
Detailed technical explanation
How to think about this question
Under the hood, a centralized data policy uses match conditions based on application (via NBAR or DPI) and then applies actions such as 'set tloc-list' or 'set vpn' to steer traffic to specific transports. The vSmart controller pushes these policies as OMP updates to all vEdge/cEdge devices, ensuring consistent enforcement. In real-world deployments, the 'most reliable transport' is typically determined by monitoring SLA metrics (loss, latency, jitter) and can be dynamically adjusted via centralized policies that reference TLOC colors with preferred characteristics.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this 350-401 question in full detail.
Network Function Virtualization — This question tests Network Function Virtualization — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Centralized data policy configured on vSmart. — A centralized data policy configured on vSmart is correct because it allows the SD-WAN controller to enforce application-aware routing decisions across the fabric. By matching real-time video traffic and steering it over the transport with the highest loss/reachability metrics (most reliable), while using a separate rule to direct all other traffic over the least-cost path, the policy is applied globally from the vSmart controller without requiring per-router configuration.
What should I do if I get this 350-401 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "least", "always". You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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