- A
Enable a system-assigned managed identity on the VM.
A system-assigned managed identity gives the VM an Azure identity without storing any secrets in the application.
- B
Assign the Storage Blob Data Reader role to that identity on the storage account.
The identity needs authorization at the storage scope, and this role allows read access to blob data.
- C
Store the storage account access key in the app configuration.
Why wrong: An access key is a shared secret, which the requirement specifically says to avoid.
- D
Generate a SAS token and embed it in the application code.
Why wrong: A SAS token is still a secret and would need protection and rotation, which this scenario avoids.
- E
Move the VM into a different subnet.
Why wrong: Subnet placement does not grant storage authorization or remove the need for identity-based access.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 VM-hosted app must read blobs from Azure Storage without storing a shared key, SAS token, or password. Which two configuration steps should the administrator take? Select two.
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
Enable a system-assigned managed identity on the VM.
A system-assigned managed identity on the VM allows Azure to automatically manage a service principal for the VM, eliminating the need for any stored credentials. By assigning the Storage Blob Data Reader role to that identity on the storage account, the VM can authenticate to Azure Storage using Azure AD tokens obtained via the Azure Instance Metadata Service (IMDS) endpoint, without ever storing a shared key, SAS token, or password.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Enable a system-assigned managed identity on the VM.
Why this is correct
A system-assigned managed identity gives the VM an Azure identity without storing any secrets in the application.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Assign the Storage Blob Data Reader role to that identity on the storage account.
Why this is correct
The identity needs authorization at the storage scope, and this role allows read access to blob data.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Store the storage account access key in the app configuration.
Why it's wrong here
An access key is a shared secret, which the requirement specifically says to avoid.
- ✗
Generate a SAS token and embed it in the application code.
Why it's wrong here
A SAS token is still a secret and would need protection and rotation, which this scenario avoids.
- ✗
Move the VM into a different subnet.
Why it's wrong here
Subnet placement does not grant storage authorization or remove the need for identity-based access.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think moving the VM to a different subnet (Option E) solves the authentication problem, but subnet changes only affect network access control, not credentialless authentication; the correct approach relies on Azure AD and RBAC via managed identities.
Trap categories for this question
Scenario analysis trap
A SAS token is still a secret and would need protection and rotation, which this scenario avoids.
Detailed technical explanation
How to think about this question
Under the hood, the system-assigned managed identity creates a service principal in Azure AD tied to the VM's lifecycle. The VM requests an access token from the IMDS endpoint (169.254.169.254) using the managed identity's client ID, and that token is used in the Authorization header of requests to Azure Storage. The Storage Blob Data Reader role grants read permissions at the RBAC level, and Azure Storage supports Azure AD authentication for blob and queue services, but not for table or file shares by default. A real-world scenario is a batch processing VM that reads input blobs from a storage account without ever handling keys, reducing credential leakage risk.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable a system-assigned managed identity on the VM. — A system-assigned managed identity on the VM allows Azure to automatically manage a service principal for the VM, eliminating the need for any stored credentials. By assigning the Storage Blob Data Reader role to that identity on the storage account, the VM can authenticate to Azure Storage using Azure AD tokens obtained via the Azure Instance Metadata Service (IMDS) endpoint, without ever storing a shared key, SAS token, or password.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 11, 2026
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