Quick Answer
The answer is AWS Secrets Manager, because it is the only AWS service purpose-built for centralizing secret management and enabling automatic rotation of database passwords, API keys, and other credentials. Unlike Systems Manager Parameter Store, which can store secrets but lacks native rotation capabilities, Secrets Manager integrates directly with AWS Lambda to rotate secrets on a schedule without custom infrastructure. On the AWS Certified Solutions Architect Professional SAP-C02 exam, this question tests your ability to distinguish between services that store secrets versus those that manage their lifecycle—a common trap is confusing Parameter Store’s secure string parameter with Secrets Manager’s full rotation feature. A reliable memory tip is to associate “Secrets” with “Rotation”: if the requirement includes automatic rotation, think Secrets Manager; if only static storage is needed, Parameter Store may suffice.
This SAP-C02 practice question tests your understanding of design for new solutions. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is designing a new application that requires secure storage of secrets such as database passwords and API keys. The application runs on Amazon EC2 instances. The company wants to centralize secret management and automatically rotate secrets. Which AWS service should be used?
AWS Key Management Service (KMS)
Why wrong: KMS manages encryption keys, not secrets.
AWS CloudHSM
Why wrong: CloudHSM provides hardware security modules, not secret storage.
AWS Systems Manager Parameter Store
Why wrong: Parameter Store can store secrets but lacks automatic rotation.
AWS Secrets Manager
Secrets Manager provides secret storage with automatic rotation.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
AWS Secrets Manager
Option B is correct because AWS Secrets Manager is designed for storing and rotating secrets centrally. Option A: Systems Manager Parameter Store can store secrets but does not natively rotate them. Option C: KMS is for encryption keys, not secret storage. Option D: CloudHSM is for hardware security modules.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
AWS Key Management Service (KMS)
Why it's wrong here
KMS manages encryption keys, not secrets.
AWS CloudHSM
Why it's wrong here
CloudHSM provides hardware security modules, not secret storage.
AWS Systems Manager Parameter Store
Why it's wrong here
Parameter Store can store secrets but lacks automatic rotation.
AWS Secrets Manager
Why this is correct
Secrets Manager provides secret storage with automatic rotation.
Related concept
Static NAT maps one inside address to one outside address.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SAP-C02 NAT questions on configuration and troubleshooting.
Design for New Solutions — study guide chapter
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FAQ
Design for New Solutions — This question tests Design for New Solutions — Static NAT maps one inside address to one outside address..
The correct answer is: AWS Secrets Manager — Option B is correct because AWS Secrets Manager is designed for storing and rotating secrets centrally. Option A: Systems Manager Parameter Store can store secrets but does not natively rotate them. Option C: KMS is for encryption keys, not secret storage. Option D: CloudHSM is for hardware security modules.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related SAP-C02 NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A company needs to store configuration data for multiple applications in a centralized, secure, and versioned manner. The configuration must be encrypted at rest and automatically rotated. Which AWS service should they use?
easyWhy C: Option B is correct because AWS AppConfig supports versioned configuration, encryption, and automatic rotation. Option A (SSM Parameter Store) can store config but doesn't support automatic rotation. Option C (Secrets Manager) is for secrets, not config. Option D (CloudFormation) is for infrastructure as code.
Variation 2. A company wants to store configuration data for multiple applications securely. Each application runs on Amazon EC2 instances in an Auto Scaling group. The configuration includes database credentials and API keys. Which TWO services should be used together to achieve this?
easyWhy C: Options A and B are correct. AWS Systems Manager Parameter Store securely stores configuration data, and IAM roles for EC2 provide secure access without hardcoding credentials. Option C is wrong because Secrets Manager is also a valid service but the question asks for two services. Option D is wrong because EC2 user data is not secure for credentials. Option E is wrong because S3 requires managing access keys.
Last reviewed: Jun 20, 2026
This SAP-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SAP-C02 exam.
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