hardMultiple Select
350-401 Practice Question: Which three statements about the benefits and…
Which three statements about the benefits and challenges of NFV are true? (Choose three.)
⚠ Common exam trap
The trap here is assuming NFV automatically improves security or eliminates physical infrastructure, when in fact it can increase attack surface and still requires physical cabling; candidates often confuse NFV with SDN or overlook the performance overhead of virtualization.
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.
Option A is correct because NFV replaces purpose-built, proprietary appliances with Virtual Network Functions (VNFs) running on commercial off-the-shelf (COTS) x86 servers, which lowers capital expenditure on specialized hardware. Option B is correct because decoupling network functions from proprietary hardware lets operators deploy and scale new services as software images, dramatically shortening service creation and time-to-market cycles. Option C is correct because the hypervisor/virtualization layer and virtual switching (e.g., vSwitch, SR-IOV, DPDK overhead) add processing latency and throughput penalties compared with bare-metal network functions, which is a recognized NFV performance challenge. Option D is not correct because consolidating many functions onto shared hardware and hypervisors actually enlarges the attack surface and creates new hypervisor and multi-tenancy risks rather than reducing it. Option E is not correct because NFV virtualizes network functions, not physical links; physical cabling and the underlying transport network are still required to interconnect servers, switches, and storage.
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
Running network functions as software on commodity x86 servers removes reliance on costly proprietary appliances, directly lowering capital expenditure. This cost-reduction mechanism is exactly the NFV benefit the stem asks you to identify as true.
- ✓
NFV enables faster time-to-market for new services by decoupling software from hardware.
Why this is correct
Because software is decoupled from dedicated hardware, new services can be developed, tested and deployed without waiting for appliance procurement or replacement cycles. This accelerated delivery mechanism satisfies the stem's requirement for a genuine NFV benefit.
- ✓
One challenge of NFV is the potential performance overhead introduced by the virtualization layer.
Why this is correct
The hypervisor and virtual switch layers add processing overhead compared with bare-metal appliances, potentially reducing throughput and increasing latency. This is a recognised NFV challenge, satisfying the stem's requirement for a true statement about NFV drawbacks.
- ✗
NFV reduces the overall security attack surface by consolidating multiple functions into a single physical device.
Why it's wrong here
Consolidating functions onto shared hardware widens the attack surface: a hypervisor or VM compromise exposes every co-hosted function, and east-west traffic needs micro-segmentation. It is tempting because consolidation reduces appliance count and management overhead, which suits small deployments where a single hardened device hosts few functions.
- ✗
NFV eliminates the need for physical cabling in the data center.
Why it's wrong here
NFV virtualises network functions onto commodity servers, but physical cabling and switching fabric remain essential for connectivity between hosts, storage and uplinks. It is tempting because NFV removes dedicated appliance hardware, which in a fully virtualised, single-host lab could appear to reduce cabling, yet production data centres still require physical links.
Go deeper
Related to this question
Learn chapter
IP Services: DHCP, NAT, and DNS
Key term
Virtual Machine Networking
Virtual machine networking is how virtual computers on a physical server connect to each other, to the internet, and to the rest of a network.
Key term
Virtual Switch
A virtual switch is a software-based network switch that connects virtual machines within a hypervisor and forwards traffic between them and the physical network.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Cisco exam blueprint
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