You have an Azure App Service web app that uses a system-assigned managed identity. The web app needs to authenticate to an Azure SQL Database to read and write data. You want to use the managed identity to avoid storing credentials in connection strings. Which steps are required to configure this access?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
Assign the managed identity the 'SQL DB Contributor' RBAC role on the database, then use SQL authentication with the identity's client ID.
RBAC roles for Azure SQL Database are for management plane operations only (e.g., creating databases). Data plane access requires creating a contained database user. Also, SQL authentication does not use managed identities.
Best answer
Create a contained database user in the SQL database mapped to the managed identity, grant required database roles, and use Microsoft Entra ID token-based authentication from the app.
This is the correct procedure. The managed identity (an Microsoft Entra ID principal) must be added as a database user. The app then acquires an access token for Azure SQL Database using the managed identity and uses it to connect.
Distractor review
Enable Microsoft Entra ID authentication on the SQL server, add the managed identity as an Microsoft Entra ID admin, and use integrated security in the connection string.
Adding the managed identity as an Microsoft Entra ID admin grants server-level permissions, which is over-privileged. Also, integrated security (Windows authentication) is not applicable to managed identities.
Distractor review
Configure the connection string with the managed identity's principal ID as the user ID and leave the password empty.
Connection strings for Microsoft Entra ID authentication require parameters like 'Authentication=Active Directory Managed Identity' and do not use a user ID/password in the traditional sense.
Common exam trap
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.
Technical deep dive
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.
Related practice questions
Related AZ-204 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
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Question 5
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Question 6
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Create a contained database user in the SQL database mapped to the managed identity, grant required database roles, and use Microsoft Entra ID token-based authentication from the app. — To use managed identity for Azure SQL Database, you must first create a contained database user for the managed identity in the target SQL database and grant it the necessary database roles. Then, the application uses the DefaultAzureCredential (or managed identity provider) to obtain an access token and connect. No AAD admin or server-level permissions are needed beyond the initial user creation.
What should I do if I get this AZ-204 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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