How do Distributed Power Management (DPM) features operate?

Distributed Power Management (DPM) features operate by optimizing power consumption in a virtualized environment. This is achieved through the intelligent management of active ESXi hosts. DPM analyzes the workload across the cluster and can place ESXi hosts into a low-power mode or power them off completely when there is insufficient demand for resources. When the demand increases, DPM will automatically power on the necessary hosts to ensure that performance remains optimal.

This dynamic adjustment helps in not only reducing energy costs but also allows for efficient resource allocation based on real-time needs, ultimately contributing to a greener and more cost-effective data center environment. The other options, while relevant to various aspects of virtualization management, do not pertain directly to the primary function of DPM in adjusting host power states and optimizing power usage.