The correct choice is a managed identity for VM-App01 combined with Azure RBAC on the storage account. This solution enables Azure Storage authentication without keys by allowing the application running on VM-App01 to obtain an Azure AD token automatically, eliminating the need to store account keys or shared access signatures in code or configuration files. The managed identity is securely managed by Azure AD, and you grant it the necessary permissions—such as the Storage Blob Data Contributor role—through Azure RBAC, ensuring the VM can access blobs in stlogs01 without exposing credentials. On the AZ-104 exam, this scenario tests your understanding of identity-based access versus key-based methods; a common trap is choosing shared access signatures or connection strings, which still require storing secrets. Remember the memory tip: “Managed identity + RBAC = no keys, no secrets, just tokens.”
AZ-104 Implement and Manage Storage Practice Question
This AZ-104 practice question tests your understanding of implement and manage storage. 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 have a storage account named stlogs01. An application running on VM-App01 in Azure must access blobs in the account without storing account keys in code or configuration files. What should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A managed identity for VM-App01 and Azure RBAC on the storage account.
Option C is correct because using a managed identity for VM-App01 allows the application to authenticate to Azure Storage without storing any credentials in code or configuration files. The managed identity is automatically managed by Azure AD, and you grant it access to the blob container using Azure RBAC (e.g., the Storage Blob Data Contributor role). This eliminates the need for account keys or shared access signatures.
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.
✗
A shared access signature stored in a text file on VM-App01.
Why it's wrong here
This still relies on storing a secret outside the identity platform.
✗
The storage account access key hard-coded in the application.
Why it's wrong here
Hard-coded keys are difficult to rotate and are less secure.
✓
A managed identity for VM-App01 and Azure RBAC on the storage account.
Why this is correct
This removes secret storage and uses identity-based access.
Related concept
Read the scenario before looking for a memorised answer.
✗
Anonymous public access for the blob container.
Why it's wrong here
Public access would expose data and does not meet the security requirement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think a SAS token stored in a file is acceptable because it is not an account key, but the question explicitly prohibits storing any secrets in code or configuration files, and a SAS token is still a secret that must be protected.
Detailed technical explanation
How to think about this question
Under the hood, a managed identity for Azure VMs uses the Azure Instance Metadata Service (IMDS) to obtain an access token from Azure AD. The application then uses this token to authenticate to Azure Storage via OAuth 2.0, and RBAC roles like Storage Blob Data Contributor grant fine-grained permissions. This approach also supports automatic credential rotation and avoids the overhead of managing SAS expiration or key regeneration.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
Implement and Manage Storage — This question tests Implement and Manage Storage — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A managed identity for VM-App01 and Azure RBAC on the storage account. — Option C is correct because using a managed identity for VM-App01 allows the application to authenticate to Azure Storage without storing any credentials in code or configuration files. The managed identity is automatically managed by Azure AD, and you grant it access to the blob container using Azure RBAC (e.g., the Storage Blob Data Contributor role). This eliminates the need for account keys or shared access signatures.
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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