The answer is a Bicep template deployment. This is the correct choice because Bicep, as a declarative Infrastructure as Code (IaC) tool, allows you to define the entire VM configuration—including the system-assigned managed identity property—in a single, version-controlled file, ensuring every deployment of the 25 identical Ubuntu VMs is repeatable and consistent. On the AZ-104 exam, this scenario tests your understanding of IaC versus manual or scripted approaches; a common trap is choosing Azure CLI or PowerShell scripts, which are imperative and harder to maintain for identical, recurring deployments. The key exam insight is that Bicep templates natively support the `identity` block with `type: 'SystemAssigned'` at resource creation, eliminating post-deployment steps. For a memory tip, think "Bicep builds identical boxes with built-in identity"—the alliteration of "Bicep, boxes, built-in" helps you recall that the template handles both repeatability and managed identity assignment in one declarative pass.
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.
A team needs to deploy 25 identical Ubuntu VMs every month from source control. The deployment must be repeatable, and each VM must include a system-assigned managed identity at creation time. Which approach should be used?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A Bicep template deployment.
A Bicep template is an Infrastructure as Code (IaC) solution that declaratively defines Azure resources, including VMs with system-assigned managed identities. It ensures repeatable, version-controlled deployments of 25 identical Ubuntu VMs every month, meeting the requirements for automation and identity assignment at creation time.
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.
✗
Azure portal manual creation of each VM.
Why it's wrong here
Manual portal steps are difficult to repeat consistently and are not source-controlled.
✓
A Bicep template deployment.
Why this is correct
Bicep is declarative, versionable in source control, and can define VM identity settings at deployment time.
Related concept
Read the scenario before looking for a memorised answer.
✗
An Azure Policy assignment at the subscription level.
Why it's wrong here
Policy can enforce compliance, but it does not create a full repeatable deployment from code.
✗
An Azure Monitor alert rule that triggers VM creation.
Why it's wrong here
Alerts notify on conditions; they are not the right mechanism for controlled infrastructure deployment.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy (which enforces compliance) with Azure Resource Manager templates (which deploy resources), leading candidates to select Policy thinking it can create VMs, when it only audits or remediates existing ones.
Detailed technical explanation
How to think about this question
Bicep templates are transpiled to ARM JSON and support declarative syntax for resource creation, including the `identity` property with `type: 'SystemAssigned'` to assign a managed identity at deployment. Under the hood, the Azure Resource Manager API processes the template, creating the VM and its identity in a single atomic operation, ensuring the identity is available immediately for authentication without post-deployment scripts. In real-world scenarios, this approach integrates with CI/CD pipelines (e.g., Azure DevOps) to automate monthly deployments from source control, leveraging parameters for VM count and configuration.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
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: A Bicep template deployment. — A Bicep template is an Infrastructure as Code (IaC) solution that declaratively defines Azure resources, including VMs with system-assigned managed identities. It ensures repeatable, version-controlled deployments of 25 identical Ubuntu VMs every month, meeting the requirements for automation and identity assignment at creation time.
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.
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Question Discussion
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