- A
Azure SQL Database with Transparent Data Encryption and Always Encrypted
Azure SQL Database provides built-in encryption at rest (TDE) and in transit (Always Encrypted), along with auditing, and is a PaaS service minimizing management.
- B
Azure Cosmos DB with encryption at rest
Why wrong: Cosmos DB is a NoSQL database and may not be suitable for relational healthcare data; also auditing features are more limited.
- C
Azure SQL Managed Instance with customer-managed keys
Why wrong: While it supports TDE and auditing, it requires more administrative overhead than Azure SQL Database and is not necessary for this scenario.
- D
SQL Server on Azure Virtual Machine with BitLocker
Why wrong: This IaaS option requires manual configuration and management of encryption, backups, and patching, increasing administrative overhead.
Quick Answer
The answer is Azure SQL Database with Transparent Data Encryption and Always Encrypted. This combination directly satisfies HIPAA compliant storage on Azure by providing encryption at rest through TDE, encryption in transit via Always Encrypted, and built-in auditing for access logs, all within a fully managed PaaS service that minimizes administrative overhead compared to IaaS solutions like SQL Server on VMs. On the AZ-305 exam, this scenario tests your ability to differentiate between PaaS and IaaS storage options for regulated workloads, with a common trap being to recommend Azure SQL Managed Instance or Azure Storage with client-side encryption—both of which require more manual configuration for auditing and key management. Remember the mnemonic “TDE for rest, Always for transit, Audit for access” to quickly recall the three pillars of HIPAA compliance in Azure SQL Database.
AZ-305 Design infrastructure solutions Practice Question
This AZ-305 practice question tests your understanding of design infrastructure 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 healthcare organization is deploying a new application on Azure that will handle Protected Health Information (PHI). The application must be compliant with HIPAA. The security team requires encryption at rest and in transit, and the ability to audit access to the data. The solution should minimize administrative overhead. Which storage solution should you recommend?
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
Azure SQL Database with Transparent Data Encryption and Always Encrypted
Azure SQL Database with Transparent Data Encryption (TDE) and Always Encrypted meets HIPAA requirements for encryption at rest and in transit, and provides auditing capabilities. It is a PaaS solution that reduces administrative overhead compared to IaaS.
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.
- ✓
Azure SQL Database with Transparent Data Encryption and Always Encrypted
Why this is correct
Azure SQL Database provides built-in encryption at rest (TDE) and in transit (Always Encrypted), along with auditing, and is a PaaS service minimizing management.
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.
- ✗
Azure Cosmos DB with encryption at rest
Why it's wrong here
Cosmos DB is a NoSQL database and may not be suitable for relational healthcare data; also auditing features are more limited.
- ✗
Azure SQL Managed Instance with customer-managed keys
Why it's wrong here
While it supports TDE and auditing, it requires more administrative overhead than Azure SQL Database and is not necessary for this scenario.
- ✗
SQL Server on Azure Virtual Machine with BitLocker
Why it's wrong here
This IaaS option requires manual configuration and management of encryption, backups, and patching, increasing administrative overhead.
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.
Trap categories for this question
Scenario analysis trap
While it supports TDE and auditing, it requires more administrative overhead than Azure SQL Database and is not necessary for this scenario.
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 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
Got this wrong? Here's your next step.
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.
- →
Design infrastructure solutions — study guide chapter
Learn the concepts, then practise the questions
- →
Design infrastructure solutions practice questions
Targeted practice on this topic area only
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FAQ
Questions learners often ask
What does this AZ-305 question test?
Design infrastructure solutions — This question tests Design infrastructure solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Azure SQL Database with Transparent Data Encryption and Always Encrypted — Azure SQL Database with Transparent Data Encryption (TDE) and Always Encrypted meets HIPAA requirements for encryption at rest and in transit, and provides auditing capabilities. It is a PaaS solution that reduces administrative overhead compared to IaaS.
What should I do if I get this AZ-305 question wrong?
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.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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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