- A
Use an availability set so the VM runs the initialization tasks during host placement.
Why wrong: Availability sets improve resilience, but they do not run first-boot configuration commands or install software.
- B
Use cloud-init in the VM creation settings to perform first-boot configuration.
Cloud-init is the standard Linux initialization method for automating first boot tasks. It can create users, install packages, write files, and run commands as the VM starts. This makes it a good fit when you want the operating system to configure itself without needing to sign in afterward or run a separate manual script.
- C
Use an Azure Policy assignment to install the packages after deployment.
Why wrong: Azure Policy can enforce configuration standards, but it is not a first-boot installer for a Linux VM.
- D
Use a managed disk snapshot and attach it to the VM after deployment.
Why wrong: Snapshots create disk copies, but they do not automate initial OS customization or package installation.
Quick Answer
The answer is to use cloud-init in the VM creation settings to perform first-boot configuration. This is correct because cloud-init is the native, standard mechanism for automating initial setup on Linux VMs in Azure, allowing you to inject a YAML or shell script during deployment that creates users, installs packages, and runs custom commands on the very first boot without any post-deployment scripts. On the AZ-104 exam, this tests your understanding of Azure’s automation tools for VM lifecycle management, often appearing in scenarios where you must choose between cloud-init, custom script extensions, or manual SSH—a common trap is confusing cloud-init with the Custom Script Extension, but remember that cloud-init runs only on first boot, while extensions run on every boot. Memory tip: think “cloud-init = first impression” for the VM’s initial configuration.
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 need to deploy a new Ubuntu VM that automatically creates an app user and installs packages the first time it boots. 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 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
Use cloud-init in the VM creation settings to perform first-boot configuration.
B is correct because cloud-init is the standard, native mechanism for performing first-boot configuration on Linux VMs in Azure. It allows you to inject a configuration file (e.g., YAML or shell script) during VM creation that automatically creates users, installs packages, and runs custom commands on the first boot, without requiring any post-deployment scripts or manual intervention.
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 VM runs the initialization tasks during host placement.
Why it's wrong here
Availability sets improve resilience, but they do not run first-boot configuration commands or install software.
- ✓
Use cloud-init in the VM creation settings to perform first-boot configuration.
Why this is correct
Cloud-init is the standard Linux initialization method for automating first boot tasks. It can create users, install packages, write files, and run commands as the VM starts. This makes it a good fit when you want the operating system to configure itself without needing to sign in afterward or run a separate manual script.
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 an Azure Policy assignment to install the packages after deployment.
Why it's wrong here
Azure Policy can enforce configuration standards, but it is not a first-boot installer for a Linux VM.
- ✗
Use a managed disk snapshot and attach it to the VM after deployment.
Why it's wrong here
Snapshots create disk copies, but they do not automate initial OS customization or package installation.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse Azure Policy (a governance tool) with a configuration management tool like cloud-init or Desired State Configuration (DSC), assuming Policy can execute scripts inside a VM when it only enforces resource-level rules.
Trap categories for this question
Command / output trap
Availability sets improve resilience, but they do not run first-boot configuration commands or install software.
Detailed technical explanation
How to think about this question
Cloud-init works by reading a user-data file (typically in YAML or shell script format) from the Azure metadata service at first boot. The cloud-init service (cloud-init.service) runs early in the boot process, before the VM is fully available, and executes tasks such as package installation via apt-get, user creation, and file writes. A common subtlety is that cloud-init scripts run only on the first boot; subsequent reboots ignore the user-data unless you explicitly re-run cloud-init with 'cloud-init clean' and 'cloud-init init'.
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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Deploy and Manage Azure Compute — study guide chapter
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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: Use cloud-init in the VM creation settings to perform first-boot configuration. — B is correct because cloud-init is the standard, native mechanism for performing first-boot configuration on Linux VMs in Azure. It allows you to inject a configuration file (e.g., YAML or shell script) during VM creation that automatically creates users, installs packages, and runs custom commands on the first boot, without requiring any post-deployment scripts or manual intervention.
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.
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 →
Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
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