- A
Hot tier
Why wrong: Hot tier is optimized for frequent data access and has higher storage costs, not suitable for archival backups.
- B
Cool tier
Why wrong: Cool tier is for infrequent access (30+ days) but still cheaper than Hot. However, for yearly access, Archive is cheaper.
- C
Archive tier
Archive tier provides the lowest storage cost for data that is accessed less than once a year and can tolerate a retrieval time of several hours.
- D
Premium tier
Why wrong: Premium is for high-performance workloads like VMs; it is the most expensive tier and not for backup storage.
Quick Answer
The Archive tier is the correct choice because it provides the lowest storage cost for rarely accessed data that must be retained long-term. For monthly VHD backups up to 1 TB retained for seven years, the Archive tier is optimized for data accessed only once or twice per year, accepting a retrieval latency of several hours—perfectly acceptable for backup recovery scenarios. On the AZ-204 exam, this tests your understanding of Azure Blob Storage access tiers and cost optimization, often appearing in scenarios contrasting the Cool, Cold, and Archive tiers. A common trap is selecting Cool or Cold tiers for infrequent access, forgetting that Archive offers dramatically lower storage costs despite higher retrieval time and fees. Remember the mnemonic “R.A.R.E.”: Retention long, Access rare, Retrieval delayed, Expense minimal—Archive wins when you can wait hours to save dollars.
AZ-204 Develop for Azure storage Practice Question
This AZ-204 practice question tests your understanding of develop for azure storage. 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.
You are designing a backup solution for a virtual machine. Monthly backups are large VHD files (up to 1 TB) that must be retained for 7 years. After creation, backups are accessed only rarely (once or twice per year). You need to minimize storage cost. Which storage tier should you use for the VHD files?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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
Archive tier
The Archive tier is the correct choice because it offers the lowest storage cost for data that is rarely accessed (once or twice per year) and has a long retention period (7 years). Azure Archive storage is optimized for data that can tolerate a retrieval latency of several hours, which is acceptable given the infrequent access pattern of these monthly backup VHD files.
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.
- ✗
Hot tier
Why it's wrong here
Hot tier is optimized for frequent data access and has higher storage costs, not suitable for archival backups.
- ✗
Cool tier
Why it's wrong here
Cool tier is for infrequent access (30+ days) but still cheaper than Hot. However, for yearly access, Archive is cheaper.
- ✓
Archive tier
Why this is correct
Archive tier provides the lowest storage cost for data that is accessed less than once a year and can tolerate a retrieval time of several hours.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Premium tier
Why it's wrong here
Premium is for high-performance workloads like VMs; it is the most expensive tier and not for backup storage.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often choose Cool tier because they see 'backup' and think 'infrequent' but fail to recognize that 'rarely accessed' (once or twice per year) and 'long retention' (7 years) specifically point to Archive tier as the most cost-effective option, not Cool.
Detailed technical explanation
How to think about this question
Azure Archive storage uses erasure coding and stores data on offline tape-like media, resulting in a retrieval time of up to 15 hours (standard priority) or 1-5 hours (high priority). The cost per GB/month for Archive is roughly one-tenth that of Cool tier, but you pay for read operations and data retrieval (e.g., $0.022 per GB for standard priority rehydration). This trade-off is ideal for compliance-driven backups where access is rare but retention is mandatory.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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.
- →
Develop for Azure storage — study guide chapter
Learn the concepts, then practise the questions
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Develop for Azure storage practice questions
Targeted practice on this topic area only
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Develop for Azure storage — This question tests Develop for Azure storage — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Archive tier — The Archive tier is the correct choice because it offers the lowest storage cost for data that is rarely accessed (once or twice per year) and has a long retention period (7 years). Azure Archive storage is optimized for data that can tolerate a retrieval latency of several hours, which is acceptable given the infrequent access pattern of these monthly backup VHD files.
What should I do if I get this AZ-204 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This AZ-204 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-204 exam.
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