An App Service application needs to read secrets from Azure Key Vault. The security team does not want any password, certificate, or client secret stored in application settings, and they want the identity removed automatically if the app is deleted. What should the administrator enable?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
A service principal with a client secret stored in App Service configuration.
This requires secret storage and manual rotation, which conflicts with the stated security requirement.
Best answer
A system-assigned managed identity on the App Service.
A system-assigned managed identity avoids stored credentials and is tied to the app lifecycle.
Distractor review
A user-assigned managed identity shared by all applications.
Shared identities can be useful, but they do not disappear automatically with one specific app.
Distractor review
A shared access signature stored in Key Vault.
A SAS token is still a secret and does not provide the same identity-based authentication model.
Common exam trap
Common exam trap: NAT rules depend on direction and matching traffic
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.
Technical deep dive
How to think about this question
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.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A route table contains these entries: 10.0.0.0/8 with next hop Virtual appliance, and 10.1.1.0/24 with next hop Virtual network gateway. Which next hop will Azure use for traffic to 10.1.1.5?
Question 2
You are deploying a stateless web application on Azure virtual machines. The solution must automatically add and remove instances based on CPU demand and allow all instances to be managed as one logical group. Which Azure compute feature should you deploy?
Question 3
You are deploying a Windows Server VM for an internal app. The VM must support Secure Boot and vTPM later, its OS disk must survive host moves, and the team wants the lowest-cost managed disk tier that still behaves like a normal writable OS disk. Which two choices should you make? Select two.
Question 4
You need to deploy several identical virtual machines and ensure that the failure of a single Azure host does not affect all of them. Which feature should you use?
Question 5
You need to connect VNet-Hub and VNet-Spoke so that resources in both virtual networks can communicate privately over the Microsoft backbone. Both virtual networks are in the same region. What should you configure?
Question 6
You need to create a storage account that provides the lowest-cost redundant storage for non-critical data and only needs protection against local disk or server failure within a single datacenter. Which redundancy option should you choose?
FAQ
Questions learners often ask
What does this AZ-104 question test?
Static NAT maps one inside address to one outside address.
What is the correct answer to this question?
The correct answer is: A system-assigned managed identity on the App Service. — A system-assigned managed identity is the most secure fit for an Azure-hosted application that needs to authenticate to Key Vault without storing secrets. Azure creates and manages the identity for the App Service, and it is automatically removed when the app is deleted. After enabling it, the administrator can grant the identity permission to read the required secrets in Key Vault and eliminate manual credential handling. Why others are wrong: Option A reintroduces the exact secret-management problem the team wants to avoid. Option C is persistent and reusable, but it is not automatically removed with the app. Option D still depends on secret distribution and does not provide identity-based authentication or lifecycle coupling to the application.
What should I do if I get this AZ-104 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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