Quick Answer
The answer is Azure Key Vault Managed HSM (Premium tier). This is the correct choice because it is the only Azure key management solution that supports customer-managed keys (CMK) with automatic key rotation, which you can configure to occur every 90 days for compliance with healthcare regulations like HIPAA. Managed HSM also provides FIPS 140-2 Level 3 validated hardware security modules, meeting the stringent security requirements for encrypting patient health records at rest and in transit across Azure SQL Database and Azure Blob Storage. On the AZ-305 exam, this scenario tests your ability to distinguish between key management tiers: the trap is that Key Vault Standard lacks automatic rotation, while Managed HSM’s premium tier is purpose-built for automated, policy-driven key rotation. A common memory tip is to associate “Managed HSM” with “Managed Rotation” — if the question demands automatic, scheduled key turnover, think HSM, not Standard.
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 needs to store patient health records in Azure. The data must be encrypted at rest and in transit. The organization requires a customer-managed key (CMK) with automatic key rotation every 90 days. The solution must support Azure SQL Database and Azure Blob Storage. Which key management solution should you recommend?
Azure Storage Service Encryption
Why wrong: Uses Microsoft-managed keys by default.
Azure Information Protection
Why wrong: For data classification, not key management.
Azure Key Vault Standard
Why wrong: Does not support automatic key rotation.
Azure Key Vault Managed HSM (Premium tier)
Supports CMK with automatic rotation and FIPS 140-2 Level 3.
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 Key Vault Managed HSM (Premium tier)
Option A is correct because Azure Key Vault Managed HSM supports CMK with automatic rotation and FIPS 140-2 Level 3 validation, meeting compliance. Option B is wrong because Key Vault Standard does not support automatic rotation. Option C is wrong because Azure Information Protection is for classification, not key management. Option D is wrong because Azure Storage encryption uses Microsoft-managed keys by default.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure Storage Service Encryption
Why it's wrong here
Uses Microsoft-managed keys by default.
Azure Information Protection
Why it's wrong here
For data classification, not key management.
Azure Key Vault Standard
Why it's wrong here
Does not support automatic key rotation.
Azure Key Vault Managed HSM (Premium tier)
Why this is correct
Supports CMK with automatic rotation and FIPS 140-2 Level 3.
Related concept
Static NAT maps one inside address to one outside address.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-305 NAT questions on configuration and troubleshooting.
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FAQ
Design infrastructure solutions — This question tests Design infrastructure solutions — Static NAT maps one inside address to one outside address..
The correct answer is: Azure Key Vault Managed HSM (Premium tier) — Option A is correct because Azure Key Vault Managed HSM supports CMK with automatic rotation and FIPS 140-2 Level 3 validation, meeting compliance. Option B is wrong because Key Vault Standard does not support automatic rotation. Option C is wrong because Azure Information Protection is for classification, not key management. Option D is wrong because Azure Storage encryption uses Microsoft-managed keys by default.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related AZ-305 NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
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Last reviewed: Jun 20, 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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