The answer is cloud-init, which is the correct approach for automating Azure Linux VM first-boot configuration to create a local admin account and install packages. Cloud-init processes user-data, typically in cloud-config YAML format, during the initial boot sequence of a Linux VM, allowing you to define user accounts, package installations, and custom scripts without manual intervention. On the AZ-104 exam, this tests your understanding of Azure VM deployment automation versus post-deployment tools like Custom Script Extension or Desired State Configuration; a common trap is choosing the Custom Script Extension, which runs after boot and requires the VM to be fully online, whereas cloud-init runs during first boot and is the standard for Linux. Remember the memory tip: "Cloud-init for first-boot, Custom Script for after-boot" — if the task is to set up the VM the moment it powers on, cloud-init is your only choice.
AZ-104 Deploy and Manage Azure Compute Practice Question
This AZ-104 practice question tests your understanding of deploy and manage azure compute. 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.
You are creating a new Ubuntu VM and want it to create a local admin account and install packages automatically on the first boot. Which approach should you use?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use cloud-init to run first-boot configuration in Linux.
Cloud-init is the standard method for automating first-boot configuration on Linux VMs in Azure. It processes user-data (such as cloud-config YAML) to create users, install packages, and run scripts during initial boot, making it the correct choice for creating a local admin account and installing packages automatically.
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.
✗
Use an availability set so the script runs during placement.
Why it's wrong here
Availability sets improve resilience, but they do not provide first-boot configuration.
✓
Use cloud-init to run first-boot configuration in Linux.
Why this is correct
cloud-init is designed for Linux first-boot automation and can create users, install packages, and apply startup settings.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use a snapshot of the operating system disk.
Why it's wrong here
Snapshots capture disk state, but they do not execute configuration commands during provisioning.
✗
Use a custom image and manually log in later.
Why it's wrong here
Custom images help standardize deployments, but they do not automatically perform first-boot tasks.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse availability sets with orchestration features or assume snapshots can trigger automation, missing that cloud-init is the Azure-native solution for first-boot configuration in Linux.
Trap categories for this question
Command / output trap
Snapshots capture disk state, but they do not execute configuration commands during provisioning.
Detailed technical explanation
How to think about this question
Cloud-init uses user-data in formats like cloud-config YAML or shell scripts, processed by the cloud-init service during the first boot of a Linux VM. It interacts with Azure’s metadata service to fetch the user-data, then executes tasks such as user creation (via `users` directive) and package installation (via `packages` directive). A real-world scenario is deploying a fleet of Ubuntu VMs with a custom admin user and pre-installed monitoring agents without manual intervention.
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.
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: Use cloud-init to run first-boot configuration in Linux. — Cloud-init is the standard method for automating first-boot configuration on Linux VMs in Azure. It processes user-data (such as cloud-config YAML) to create users, install packages, and run scripts during initial boot, making it the correct choice for creating a local admin account and installing packages automatically.
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.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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