Quick Answer
The correct choice is Azure Storage Service Encryption with customer-managed keys in Azure Key Vault. This is because Azure Storage Service Encryption (SSE) automatically encrypts all data at rest in Blob Storage, and when configured with customer-managed keys, you control the encryption key lifecycle via Azure Key Vault, allowing you to rotate, disable, or audit key usage independently. On the Microsoft Azure Solutions Architect Expert AZ-305 exam, this scenario tests your understanding of data encryption responsibilities and key management options—a common trap is confusing SSE with Azure Disk Encryption, which only applies to VM disks, or with Azure Information Protection, which handles classification and labeling, not encryption at rest. Remember the memory tip: “SSE for storage, ADE for disks, AIP for labels”—if the question mentions Blob Storage and customer-controlled keys, SSE with Key Vault is always the answer.
This AZ-305 practice question tests your understanding of design data storage solutions. 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 stores sensitive customer data in Azure Blob Storage. They need to ensure that data at rest is encrypted using a customer-managed key stored in Azure Key Vault. Which of the following should they use?
Azure Storage Service Encryption with customer-managed keys in Azure Key Vault
Allows customer-managed keys for encryption.
Azure Disk Encryption
Why wrong: Encrypts VM disks, not blob storage.
Azure Storage Service Encryption with Microsoft-managed keys
Why wrong: Does not use customer-managed keys.
Azure Information Protection
Why wrong: For classification and labeling, not encryption at rest.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Azure Storage Service Encryption with customer-managed keys in Azure Key Vault
Azure Storage Service Encryption with customer-managed keys allows encryption using keys from Azure Key Vault. Option B is correct because it supports customer-managed keys. Option A is wrong because it uses Microsoft-managed keys. Option C is wrong because Azure Information Protection is for classification and labeling. Option D is wrong because Azure Disk Encryption is for virtual machine disks.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure Storage Service Encryption with customer-managed keys in Azure Key Vault
Why this is correct
Allows customer-managed keys for encryption.
Related concept
Read the scenario before looking for a memorised answer.
Azure Disk Encryption
Why it's wrong here
Encrypts VM disks, not blob storage.
Azure Storage Service Encryption with Microsoft-managed keys
Why it's wrong here
Does not use customer-managed keys.
Azure Information Protection
Why it's wrong here
For classification and labeling, not encryption at rest.
Common exam traps
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
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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.
What to study next
Identify which AZ-305 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.
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FAQ
Design data storage solutions — This question tests Design data storage solutions — Read the scenario before looking for a memorised answer..
The correct answer is: Azure Storage Service Encryption with customer-managed keys in Azure Key Vault — Azure Storage Service Encryption with customer-managed keys allows encryption using keys from Azure Key Vault. Option B is correct because it supports customer-managed keys. Option A is wrong because it uses Microsoft-managed keys. Option C is wrong because Azure Information Protection is for classification and labeling. Option D is wrong because Azure Disk Encryption is for virtual machine disks.
Identify which AZ-305 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.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 2026
This AZ-305 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-305 exam.
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