The answer is to enable a system-assigned managed identity on the App Service and grant it access to the database, or to use Azure Key Vault to store the credentials and retrieve them at runtime. Managed identity works by creating an Azure AD identity for the app service, allowing it to authenticate to Azure SQL without any credentials stored in code or configuration files, while Key Vault decouples the secret from the application code by providing a secure, centralized store. On the AZ-204 exam, this question tests your understanding of secure authentication patterns and the principle of least privilege, often appearing as a trap where candidates mistakenly choose connection strings with passwords or service principals with client secrets. A common memory tip is to remember that managed identity is "passwordless by design," while Key Vault is "secret storage, not secret elimination"—both remove credentials from your code, but only managed identity eliminates the need to handle secrets entirely.
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.
Which TWO methods can you use to authenticate an Azure App Service web app to Azure SQL Database without storing credentials in code? (Choose two.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Store the SQL connection string in Azure Key Vault and use a Key Vault reference in the app settings.
Options B and D are correct. Managed identity allows the app to authenticate without credentials. Azure Key Vault can store credentials and the app retrieves them at runtime. Option A is wrong because connection strings with passwords expose credentials. Option C is wrong because service principal with client secret requires storing the secret. Option E is wrong because certificate authentication requires certificate management.
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.
✓
Store the SQL connection string in Azure Key Vault and use a Key Vault reference in the app settings.
Why this is correct
Credentials are retrieved securely at runtime.
Related concept
Read the scenario before looking for a memorised answer.
✓
Enable a system-assigned managed identity on the App Service and grant it access to the database.
Why this is correct
No credentials needed.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use a connection string with a SQL username and password.
Why it's wrong here
Credentials are stored in code or config.
✗
Use a service principal with a client secret stored in app settings.
Why it's wrong here
The secret is stored in config.
✗
Use a client certificate installed on the App Service.
Why it's wrong here
Certificate must be stored and managed.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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-204 question in full detail.
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Implement Azure security — This question tests Implement Azure security — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Store the SQL connection string in Azure Key Vault and use a Key Vault reference in the app settings. — Options B and D are correct. Managed identity allows the app to authenticate without credentials. Azure Key Vault can store credentials and the app retrieves them at runtime. Option A is wrong because connection strings with passwords expose credentials. Option C is wrong because service principal with client secret requires storing the secret. Option E is wrong because certificate authentication requires certificate management.
What should I do if I get this AZ-204 question wrong?
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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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