- A
An availability set
Availability sets distribute VMs across fault and update domains.
- B
A proximity placement group
Why wrong: A proximity placement group optimizes latency by placing resources close together, not by improving fault-domain separation.
- C
A private endpoint
Why wrong: A private endpoint is for private connectivity to services.
- D
A custom script extension
Why wrong: A custom script extension runs scripts and does not provide host-level resiliency.
Question 17 of 1,170
AZ-104 Deploy and Manage Azure Compute Practice Question
This AZ-104 practice question tests your understanding of deploy and manage azure compute. 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.
You need to deploy a group of identical Azure virtual machines and ensure they are distributed across fault domains and update domains to reduce the impact of host failures and planned maintenance. Which feature should you use?
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
✓
An availability set
An availability set is the correct feature because it logically groups VMs to isolate them from each other during host failures and planned maintenance. It distributes VMs across up to 3 fault domains (each with separate power, cooling, and network) and up to 20 update domains (which are rebooted sequentially during maintenance), ensuring that not all VMs are impacted simultaneously.
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.
- ✓
An availability set
Why this is correct
Availability sets distribute VMs across fault and update domains.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A proximity placement group
Why it's wrong here
A proximity placement group optimizes latency by placing resources close together, not by improving fault-domain separation.
When this WOULD be correct
When deploying VMs that require low network latency between them, such as for high-performance computing or latency-sensitive applications, a proximity placement group ensures VMs are physically close to each other.
- ✗
A private endpoint
Why it's wrong here
A private endpoint is for private connectivity to services.
When this WOULD be correct
You need to ensure that a virtual machine accesses an Azure Storage account privately, without traversing the public internet. The question would specify a requirement for private connectivity to an Azure service.
- ✗
A custom script extension
Why it's wrong here
A custom script extension runs scripts and does not provide host-level resiliency.
When this WOULD be correct
When the question asks how to automatically install software or run a PowerShell script on Azure VMs during or after deployment, such as 'You need to configure a VM to run a custom configuration script on first boot.'
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓An availability setCorrect answer▾
Why this is correct
Availability sets distribute VMs across fault and update domains.
✗A proximity placement groupWrong answer — click to see why▾
Why this is wrong here
A proximity placement group reduces network latency between VMs but does not distribute them across fault domains or update domains for high availability.
★ When this WOULD be the correct answer
When deploying VMs that require low network latency between them, such as for high-performance computing or latency-sensitive applications, a proximity placement group ensures VMs are physically close to each other.
Why candidates choose this
Candidates may confuse proximity placement groups with availability sets because both involve grouping VMs, but they serve different purposes: one for low latency, the other for high availability.
✗A private endpointWrong answer — click to see why▾
Why this is wrong here
A private endpoint provides secure connectivity to Azure PaaS services over a private IP address, not fault or update domain distribution for VMs.
★ When this WOULD be the correct answer
You need to ensure that a virtual machine accesses an Azure Storage account privately, without traversing the public internet. The question would specify a requirement for private connectivity to an Azure service.
Why candidates choose this
Candidates may confuse 'private' with 'high availability' or think that a private endpoint somehow isolates VMs from failures.
✗A custom script extensionWrong answer — click to see why▾
Why this is wrong here
A custom script extension is used to run scripts on VMs after deployment for configuration or software installation, not to manage fault domain and update domain distribution across a group of VMs.
★ When this WOULD be the correct answer
When the question asks how to automatically install software or run a PowerShell script on Azure VMs during or after deployment, such as 'You need to configure a VM to run a custom configuration script on first boot.'
Why candidates choose this
Candidates may confuse the 'custom' aspect with the ability to customize VM placement or think that extensions can influence availability features.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse availability sets with availability zones, thinking zones are required for fault domain distribution, but availability sets provide fault and update domain isolation within a single Azure region without requiring multiple zones.
Detailed technical explanation
How to think about this question
Under the hood, an availability set assigns each VM to a specific fault domain (FD) and update domain (UD) based on a placement algorithm that ensures VMs are spread across physical racks. Fault domains correspond to distinct hardware racks with independent power and network switches, while update domains define the reboot sequence during Azure platform maintenance—only one UD is rebooted at a time, with a 30-minute pause between each. In a real-world scenario, if you deploy 3 VMs in an availability set with 2 FDs, Azure guarantees that at least 2 VMs are in different FDs, so a single rack failure affects at most 2 VMs.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Deploy and Manage Azure Compute — This question tests Deploy and Manage Azure Compute — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: An availability set — An availability set is the correct feature because it logically groups VMs to isolate them from each other during host failures and planned maintenance. It distributes VMs across up to 3 fault domains (each with separate power, cooling, and network) and up to 20 update domains (which are rebooted sequentially during maintenance), ensuring that not all VMs are impacted simultaneously.
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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