An administrator wants to use existing Nutanix licenses for NC2 consumption.

Nutanix provides a flexible licensing model for NC2, allowing customers to use their existingon-premises licensesthrough reservation. A key benefit of this approach is thatreserved licensed capacity automatically handles incidental overages. If a cluster temporarily scales out and exceeds the reserved capacity, the Nutanix billing system accounts for the excess usage automatically, typically by drawing from the associated Pay-As-You-Go (PAYG) account or consumption credits. This ensures that the cluster remains operational and compliant even during unexpected spikes in demand. Administrators can manage these reservations through the Nutanix portal, allowing them to balance their committed on-premises license spend with the variable needs of their cloud-resident clusters.