The correct answer is Azure SQL Database with Transparent Data Encryption (TDE) using customer-managed keys in Azure Key Vault, combined with active geo-replication. This solution satisfies the encryption-at-rest requirement because TDE with customer-managed keys allows you to bring your own key (BYOK) from Azure Key Vault, enabling full control over key rotation every 90 days while ensuring the data remains encrypted on disk. Active geo-replication then provides the necessary geo-redundancy for disaster recovery by maintaining continuously synchronized, readable secondary replicas in a paired Azure region, which can be failed over manually or automatically. On the AZ-305 exam, this scenario tests your understanding of how to align data protection with business continuity—specifically, that TDE with customer-managed keys handles encryption compliance, while geo-replication addresses regional failover. A common trap is confusing failover groups with active geo-replication; remember that active geo-replication supports up to four readable secondaries and manual failover, whereas failover groups add automatic failover and a listener endpoint. Memory tip: "TDE for the key, geo-rep for the backup."
AZ-305 Design data storage solutions Practice Question
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 multinational corporation needs to store sensitive customer data in Azure. The data must be encrypted at rest using a customer-managed key stored in Azure Key Vault, and the key must be rotated every 90 days. The solution must also support geo-redundancy for disaster recovery. Which combination of services should you recommend?
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 (TDE) using customer-managed keys in Azure Key Vault, and active geo-replication
Azure SQL Database with TDE using customer-managed keys in Azure Key Vault meets the encryption-at-rest requirement with customer-managed key rotation every 90 days. Active geo-replication provides geo-redundancy for disaster recovery by maintaining readable secondary replicas in paired regions, which can be failed over manually or automatically.
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 Storage with customer-managed keys in Azure Key Vault and geo-redundant storage (GRS)
Why it's wrong here
Key rotation is not automatic; requires manual or custom automation.
✓
Azure SQL Database with Transparent Data Encryption (TDE) using customer-managed keys in Azure Key Vault, and active geo-replication
Why this is correct
This combination meets all requirements: encryption, key rotation via Key Vault, and geo-redundancy.
Related concept
Read the scenario before looking for a memorised answer.
✗
Azure Cosmos DB with customer-managed keys in Azure Key Vault and multi-region writes
Why it's wrong here
Key rotation is not automatic; requires manual steps.
✗
Azure SQL Managed Instance with TDE and failover groups
Why it's wrong here
Failover groups provide geo-redundancy but key rotation still requires manual process.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Azure SQL Database's active geo-replication with Azure SQL Managed Instance's failover groups, which do not support readable secondaries or the same level of geo-redundancy flexibility.
Detailed technical explanation
How to think about this question
Active geo-replication for Azure SQL Database creates up to four readable secondary replicas in different Azure regions, using asynchronous replication with a Recovery Point Objective (RPO) of up to 5 seconds. Customer-managed keys in Azure Key Vault enable TDE with the ability to rotate keys using the ALTER DATABASE ENCRYPTION KEY statement, and the rotation can be automated via Azure Policy or Azure Automation runbooks to enforce a 90-day schedule.
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 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-305 question in full detail.
Design data storage solutions — This question tests Design data storage 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 (TDE) using customer-managed keys in Azure Key Vault, and active geo-replication — Azure SQL Database with TDE using customer-managed keys in Azure Key Vault meets the encryption-at-rest requirement with customer-managed key rotation every 90 days. Active geo-replication provides geo-redundancy for disaster recovery by maintaining readable secondary replicas in paired regions, which can be failed over manually or automatically.
What should I do if I get this AZ-305 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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