The answer is Always Encrypted with a column master key stored in Azure Key Vault. This technology enables client-side encryption of sensitive columns like credit card numbers, ensuring data is encrypted both at rest and in transit, while allowing only authorized applications to decrypt the data using keys managed centrally in Key Vault—eliminating the need to manage certificates. On the AZ-204 exam, this scenario tests your understanding of column-level encryption versus broader database protections; a common trap is confusing Always Encrypted with Transparent Data Encryption (TDE), which encrypts the entire database at rest but not in transit or at the column level. Remember that Always Encrypted keeps encryption keys on the client side, with the column master key securely stored in Key Vault, while the database never sees plaintext data. Memory tip: “Always Encrypted = client-side column control; TDE = server-side whole-database blanket.”
AZ-204 Implement Azure security Practice Question
This AZ-204 practice question tests your understanding of implement azure security. 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 company uses Azure SQL Database and needs to encrypt sensitive columns (e.g., credit card numbers) at rest and in transit, with the ability to allow specific applications to decrypt. They want to manage encryption keys centrally in Azure Key Vault and avoid managing certificates. Which technology should they use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Always Encrypted with column master key in Azure Key Vault.
Option B is correct because Always Encrypted with Azure Key Vault allows client-side encryption and decryption, with keys stored in Key Vault. Option A is wrong because TDE encrypts the entire database at rest but not in transit and not column-level. Option C is wrong because Row-Level Security is for access control, not encryption. Option D is wrong because Dynamic Data Masking obscures data from non-privileged users but does not encrypt.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Always Encrypted with column master key in Azure Key Vault.
Why this is correct
This provides column-level encryption and decryption by authorized applications.
Related concept
Authentication checks who the user is.
✗
Transparent Data Encryption (TDE) with Azure Key Vault.
Why it's wrong here
TDE encrypts at rest but not in transit and not column-level.
✗
Dynamic Data Masking (DDM) with Azure Key Vault.
Why it's wrong here
DDM masks data but does not encrypt.
✗
Row-Level Security (RLS) with Azure Key Vault.
Why it's wrong here
RLS is for access control, not encryption.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
Authentication checks who the user is.
Authorization controls what the user is allowed to do after login.
Privilege levels affect access to EXEC and configuration commands.
AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
→Do not assume successful login means full administrative access.
→Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
→Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
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-204 question in full detail.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-204 questions on access control and AAA configuration.
Implement Azure security — This question tests Implement Azure security — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Always Encrypted with column master key in Azure Key Vault. — Option B is correct because Always Encrypted with Azure Key Vault allows client-side encryption and decryption, with keys stored in Key Vault. Option A is wrong because TDE encrypts the entire database at rest but not in transit and not column-level. Option C is wrong because Row-Level Security is for access control, not encryption. Option D is wrong because Dynamic Data Masking obscures data from non-privileged users but does not encrypt.
What should I do if I get this AZ-204 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related AZ-204 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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