- A
Azure portal manual creation of each VM.
Why wrong: Manual portal steps are difficult to repeat consistently and are not source-controlled.
- B
A Bicep template deployment.
Bicep is declarative, versionable in source control, and can define VM identity settings at deployment time.
- C
An Azure Policy assignment at the subscription level.
Why wrong: Policy can enforce compliance, but it does not create a full repeatable deployment from code.
- D
An Azure Monitor alert rule that triggers VM creation.
Why wrong: Alerts notify on conditions; they are not the right mechanism for controlled infrastructure deployment.
Question 3 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.
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 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
✓
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.
When this WOULD be correct
For a one-time deployment of a single VM where the administrator needs to visually configure settings and verify each step, manual portal creation is appropriate.
- ✓
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.
When this WOULD be correct
An exam question requiring automatic enforcement of a system-assigned managed identity on all new VMs across a subscription, without manual template deployment, would make Azure Policy the correct answer.
- ✗
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.
When this WOULD be correct
An Azure Monitor alert rule would be correct if the question asked for an automated response to scale out VMs when CPU usage exceeds a threshold, using a runbook or webhook to trigger VM creation.
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.
✓A Bicep template deployment.Correct answer▾
Why this is correct
Bicep is declarative, versionable in source control, and can define VM identity settings at deployment time.
✗Azure portal manual creation of each VM.Wrong answer — click to see why▾
Why this is wrong here
Manual creation via Azure portal is not repeatable and cannot efficiently deploy 25 identical VMs every month, nor does it inherently enforce system-assigned managed identity at scale.
★ When this WOULD be the correct answer
For a one-time deployment of a single VM where the administrator needs to visually configure settings and verify each step, manual portal creation is appropriate.
Why candidates choose this
Candidates may default to the portal due to familiarity, underestimating the need for automation and repeatability in monthly deployments.
✗An Azure Policy assignment at the subscription level.Wrong answer — click to see why▾
Why this is wrong here
Azure Policy can enforce compliance (e.g., require managed identity) but cannot deploy 25 identical VMs from source control; it is not a deployment tool.
★ When this WOULD be the correct answer
An exam question requiring automatic enforcement of a system-assigned managed identity on all new VMs across a subscription, without manual template deployment, would make Azure Policy the correct answer.
Why candidates choose this
Candidates may confuse Azure Policy's compliance enforcement capabilities with actual resource deployment, thinking it can create VMs automatically.
✗An Azure Monitor alert rule that triggers VM creation.Wrong answer — click to see why▾
Why this is wrong here
Azure Monitor alert rules trigger actions based on metrics or logs, not for provisioning resources like VMs. They cannot deploy VMs with specific configurations like managed identities.
★ When this WOULD be the correct answer
An Azure Monitor alert rule would be correct if the question asked for an automated response to scale out VMs when CPU usage exceeds a threshold, using a runbook or webhook to trigger VM creation.
Why candidates choose this
Candidates may think alert rules can automate VM creation for scaling, but they are designed for monitoring and alerting, not direct resource deployment.
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 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.
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: 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.
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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