How does the hypervisor handle CPU resources when multiple VMs are running on an ESXi host?

The correct answer is rooted in the way hypervisors function, particularly regarding resource management. In an ESXi host, when multiple virtual machines (VMs) are running simultaneously, the hypervisor employs a time-sharing mechanism to manage CPU resources. This is accomplished through time slicing, where the physical processors are divided into smaller increments of time, allowing multiple VMs to share CPU resources effectively.

By time slicing, the hypervisor can ensure that each VM receives a fair opportunity to execute its tasks without any single VM monopolizing the CPU. This means each VM is allocated processor time in a way that optimizes overall performance and responsiveness, facilitating smooth operation across all VMs. It enables the ESXi host to maintain a balance and prevent resource contention issues, ensuring that workloads can run simultaneously without excessive delay.

This method is crucial in virtualized environments, especially when considering that the host might have limited physical CPU resources relative to the demands placed by the VMs. It allows for efficient utilization of those resources while delivering a level of service that meets the varying needs of each VM.