System-Assigned Managed Identity — Automatic Cleanup When Resource is Deleted | Azure Administrator Explained
This AZ-104 practice question tests your understanding of manage azure identities and governance. 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.
Exhibit
Web app configuration:
- Name: orders-web
- Current authentication method: client secret stored in application settings
- Requirement: Access Azure resources without storing credentials in the app
- Additional requirement: When the app is deleted, the identity should be removed automatically.
Based on the exhibit, which identity should the administrator enable to remove the secret from app settings and have the identity disappear automatically when the app is deleted?
Exhibit
Web app configuration:
- Name: orders-web
- Current authentication method: client secret stored in application settings
- Requirement: Access Azure resources without storing credentials in the app
- Additional requirement: When the app is deleted, the identity should be removed automatically.
A
User-assigned managed identity
Why wrong: A user-assigned identity can be reused across resources, but it does not automatically disappear when one app is deleted.
B
Service principal with a client secret
Why wrong: A service principal still requires a secret or certificate to be managed, which does not remove credential storage from the app.
C
System-assigned managed identity
A system-assigned managed identity is tied directly to the Azure resource, so it is created with the app and removed when the app is deleted. It is the best fit when you want to eliminate stored secrets and keep the identity lifecycle aligned to one resource.
D
Shared access signature
Why wrong: A SAS token is for scoped storage access, not for giving a web app a general Azure identity.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
System-assigned managed identity
The system-assigned managed identity is tied directly to the lifecycle of the Azure resource (e.g., an App Service). When you enable it, Azure automatically creates a service principal in Azure AD for that resource, and you can use the identity to access Azure Key Vault without storing secrets in app settings. When the resource is deleted, the system-assigned managed identity and its corresponding service principal are automatically removed, eliminating the need for manual cleanup.
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.
✗
User-assigned managed identity
Why it's wrong here
A user-assigned identity can be reused across resources, but it does not automatically disappear when one app is deleted.
When this WOULD be correct
A user-assigned managed identity would be correct if the question asked for an identity that can be shared across multiple Azure resources (e.g., multiple VMs or apps) and must persist even after one resource is deleted, or if the identity needs to be pre-created and assigned to resources in different regions.
✗
Service principal with a client secret
Why it's wrong here
A service principal still requires a secret or certificate to be managed, which does not remove credential storage from the app.
When this WOULD be correct
This option would be correct if the question required an identity that can be used for authentication outside of Azure (e.g., for an on-premises application) and the administrator is willing to manage the secret lifecycle manually, with no requirement for automatic cleanup.
✓
System-assigned managed identity
Why this is correct
A system-assigned managed identity is tied directly to the Azure resource, so it is created with the app and removed when the app is deleted. It is the best fit when you want to eliminate stored secrets and keep the identity lifecycle aligned to one resource.
Related concept
Read the scenario before looking for a memorised answer.
✗
Shared access signature
Why it's wrong here
A SAS token is for scoped storage access, not for giving a web app a general Azure identity.
When this WOULD be correct
When the question asks for a method to grant time-limited, delegated access to a specific Azure Storage resource (e.g., blob or queue) without sharing account keys, and the access should be revocable by expiry or policy.
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.
✓System-assigned managed identityCorrect answer▾
Why this is correct
A system-assigned managed identity is tied directly to the Azure resource, so it is created with the app and removed when the app is deleted. It is the best fit when you want to eliminate stored secrets and keep the identity lifecycle aligned to one resource.
✗User-assigned managed identityWrong answer — click to see why▾
Why this is wrong here
User-assigned managed identities are not automatically deleted when the associated app is deleted; they persist independently until explicitly removed. The question requires an identity that disappears automatically with the app, which is a property of system-assigned managed identities.
★ When this WOULD be the correct answer
A user-assigned managed identity would be correct if the question asked for an identity that can be shared across multiple Azure resources (e.g., multiple VMs or apps) and must persist even after one resource is deleted, or if the identity needs to be pre-created and assigned to resources in different regions.
Why candidates choose this
Candidates may confuse user-assigned with system-assigned managed identities, or think that all managed identities are automatically deleted with the resource, overlooking the key difference that user-assigned identities have a separate lifecycle.
✗Service principal with a client secretWrong answer — click to see why▾
Why this is wrong here
A service principal with a client secret is not automatically deleted when the app is deleted; it must be manually removed. It also requires storing a secret in app settings, which contradicts the requirement to remove the secret.
★ When this WOULD be the correct answer
This option would be correct if the question required an identity that can be used for authentication outside of Azure (e.g., for an on-premises application) and the administrator is willing to manage the secret lifecycle manually, with no requirement for automatic cleanup.
Why candidates choose this
Candidates may confuse service principals with managed identities, thinking both provide similar functionality, and may not realize that service principals require manual secret management and deletion.
✗Shared access signatureWrong answer — click to see why▾
Why this is wrong here
A shared access signature (SAS) is a token granting limited access to Azure Storage resources, not an identity for an app. It cannot be used to remove secrets from app settings or automatically disappear when the app is deleted.
★ When this WOULD be the correct answer
When the question asks for a method to grant time-limited, delegated access to a specific Azure Storage resource (e.g., blob or queue) without sharing account keys, and the access should be revocable by expiry or policy.
Why candidates choose this
Candidates may confuse SAS with managed identities because both involve temporary access, but SAS is for storage access, not for app identity or automatic lifecycle management.
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 user-assigned managed identities with system-assigned ones, assuming both are automatically deleted with the resource, but only the system-assigned identity is tied to the resource's lifecycle.
Detailed technical explanation
How to think about this question
Under the hood, a system-assigned managed identity uses the Azure Instance Metadata Service (IMDS) endpoint (169.254.169.254) to acquire OAuth 2.0 tokens for authenticating to Azure AD. The identity is represented as a service principal in Azure AD with a lifecycle that mirrors the parent resource—when the resource is deleted, Azure automatically removes the service principal via a background cleanup process. This is particularly useful in ephemeral environments like Azure DevOps deployment slots, where you want identities to be created and destroyed 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
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.
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: System-assigned managed identity — The system-assigned managed identity is tied directly to the lifecycle of the Azure resource (e.g., an App Service). When you enable it, Azure automatically creates a service principal in Azure AD for that resource, and you can use the identity to access Azure Key Vault without storing secrets in app settings. When the resource is deleted, the system-assigned managed identity and its corresponding service principal are automatically removed, eliminating the need for manual cleanup.
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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