Question 738 of 1,013
SY0-701 Security Architecture Practice Question
A regulated analytics workload must run in the cloud with the strongest isolation from other customers, but the company does not want to manage its own physical server room. Which placement is most appropriate?
⚠ Common exam trap
Many candidates confuse logical isolation (e.g., VPCs, private subnets) with physical isolation, and mistakenly choose a shared-tenancy option like a private subnet VM, thinking it provides the strongest separation.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A dedicated host or equivalent single-tenant compute placement in the provider's environment.
A dedicated host or single-tenant compute placement ensures that the physical server is not shared with any other customer, providing the strongest isolation required for regulated workloads. This model meets the compliance need for physical separation while still being a cloud service, so the company avoids managing its own server room.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
A public subnet with an internet gateway so the workload can be reached directly.
Why it's wrong here
Attaching a public subnet and internet gateway directly exposes the analytics workload to inbound traffic from the internet, dramatically expanding its attack surface. Although security groups and network ACLs can filter traffic, regulatory frameworks rarely permit direct public reachability for sensitive data processing; they require private connectivity such as VPN or Direct Connect. This option solves reachability, not the core requirement of strong tenant isolation, so it fails to provide containment appropriate for a regulated workload.
- ✗
A shared-tenancy virtual machine in the provider's default compute pool.
Why it's wrong here
Choosing a standard VM in the provider's default compute pool means the instance shares a physical server with other customers through the hypervisor. For regulated data, that multi-tenant hardware arrangement may violate compliance requirements for physical separation, since a hypervisor compromise or side-channel attack could expose data to a co-tenant. Shared tenancy can be acceptable for low-risk workloads, but it is the weakest option for satisfying an explicit requirement of strong isolation.
- ✓
A dedicated host or equivalent single-tenant compute placement in the provider's environment.
Why this is correct
A dedicated host (or an equivalent single-tenant placement such as an AWS Dedicated Host, Azure Dedicated Host, or GCP sole-tenant node) assigns an entire physical server to a single customer, eliminating co-tenant compute activity on that machine. This physical isolation directly addresses regulatory mandates that require data containment, while still allowing the cloud provider to manage hardware maintenance and updates. It also enables consistent instance placement, brings-your-own-license (BYOL) scenarios, and helps meet stringent compliance frameworks such as HIPAA, PCI DSS, or FedRAMP.
- ✗
A serverless function because it removes all underlying infrastructure concerns.
Why it's wrong here
A serverless function abstracts away the server, but it runs on infrastructure that is inherently shared among many customers and does not offer any control over underlying host tenancy. Regulated analytics workloads often need predictable long-running compute, stateful execution, and dedicated hardware isolation, none of which are guaranteed by function-as-a-service offerings. From a containment perspective, serverless actually provides less visibility and control than a deliberately chosen dedicated host, making it insufficient for a compliance-driven requirement.
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Last reviewed: Jun 11, 2026
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