Nutanix Exam Financial Management & Budgeting 5 — Questions and Answers
Question 1: Which approach does Nutanix recommend for organizations that want to run some workloads on-premises and burst to cloud during peak demand to control costs?
- Full cloud migration of all workloads regardless of cost
- Hybrid cloud with cloud bursting to manage peak capacity costs (Correct answer)
- Adding excess on-premises capacity to handle all peaks without cloud
- Using only public cloud spot instances for all workloads
Correct answer: Hybrid cloud with cloud bursting to manage peak capacity costs
Hybrid cloud with cloud bursting lets organizations maintain cost-efficient on-premises baseline capacity and pay for cloud resources only during temporary demand spikes.
Question 2: A Nutanix administrator is asked to demonstrate cost savings from storage efficiency features. Which two features should they highlight in the financial report?
- Replication factor and metro availability
- Deduplication and compression reducing effective storage cost per GB (Correct answer)
- Live migration and workload balancing
- VLAN segmentation and microsegmentation
Correct answer: Deduplication and compression reducing effective storage cost per GB
Deduplication eliminates redundant data blocks and compression reduces data size, both directly lowering the effective cost per GB of usable storage.
Question 3: When building a multi-year Nutanix budget, which factor most significantly affects the total cost of a subscription over time?
- The color of the physical node chassis
- Annual subscription renewal price escalation clauses in the contract (Correct answer)
- The hypervisor version running on the cluster
- The number of virtual NICs per VM
Correct answer: Annual subscription renewal price escalation clauses in the contract
Annual price escalation clauses in subscription contracts can significantly increase the total 3–5 year cost, so negotiating these terms is critical during the initial agreement.
Question 4: A company replaces a $2M traditional infrastructure with a $1.2M Nutanix HCI solution. Ignoring other factors, what is the upfront capital savings?
- $600K
- $800K (Correct answer)
- $400K
- $1M
Correct answer: $800K
$2M - $1.2M = $800K in upfront capital savings, which can be reinvested or used to reduce the capital budget request.
Question 5: Which Nutanix feature helps finance teams forecast storage costs by predicting when additional capacity will need to be purchased?
- Prism Central capacity runway reporting (Correct answer)
- AHV snapshot scheduling
- Nutanix Files protocol configuration
- Flow network policy management
Correct answer: Prism Central capacity runway reporting
Prism Central's capacity runway feature analyzes consumption trends and projects when CPU, memory, or storage will be exhausted, enabling proactive budget planning for capacity expansion.
Question 6: A CFO is skeptical about approving a Nutanix investment because of concerns about vendor lock-in increasing future costs. Which Nutanix characteristic best addresses this financial risk?
- Nutanix runs exclusively on proprietary NX hardware requiring vendor-specific replacements
- Nutanix software runs on multiple hardware vendor platforms and supports standard hypervisors, reducing lock-in risk (Correct answer)
- Nutanix uses a closed API architecture that prevents third-party integration
- Nutanix requires long-term 10-year contracts with no exit clauses
Correct answer: Nutanix software runs on multiple hardware vendor platforms and supports standard hypervisors, reducing lock-in risk
Nutanix software runs on hardware from multiple OEM partners and supports AHV, VMware, and Hyper-V, giving organizations flexibility and competitive leverage that reduces long-term vendor lock-in cost risk.
Question 7: Which metric best measures the financial efficiency of a Nutanix cluster compared to the workloads it supports?
- Total physical nodes in the cluster
- Cost per VM or cost per workload running on the cluster (Correct answer)
- Number of CPU cores per node model
- Total raw storage capacity in terabytes
Correct answer: Cost per VM or cost per workload running on the cluster
Cost per VM normalizes infrastructure spend against the number of workloads supported, directly comparing financial efficiency across different infrastructure configurations.
Nutanix Exam Financial Management & Budgeting 5
Which approach does Nutanix recommend for organizations that want to run some workloads on-premises and burst to cloud during peak demand to control costs?