- A
Create the storage account with a user-assigned managed identity, then enable hierarchical namespace, and configure encryption.
Why wrong: User-assigned identity is not required; system-assigned is sufficient.
- B
Create the storage account without hierarchical namespace, then enable it later, and configure encryption with Key Vault.
Why wrong: Hierarchical namespace cannot be enabled after creation.
- C
Create the storage account and specify customer-managed key encryption during creation using the Azure portal.
Why wrong: Customer-managed key encryption cannot be configured during creation; it must be done after.
- D
Create the storage account with hierarchical namespace enabled, then assign a system-assigned managed identity, and configure encryption with Azure Key Vault.
This is the correct order: create account, enable identity, configure encryption.
Quick Answer
The correct answer is to create the storage account with hierarchical namespace enabled, then assign a system-assigned managed identity, and configure encryption with Azure Key Vault. This sequence is required because Azure Data Lake Storage Gen2 customer-managed key encryption depends on two non-negotiable prerequisites: hierarchical namespace must be enabled at creation time—it cannot be added later—and a system-assigned managed identity must be assigned to the storage account after creation to authenticate to Azure Key Vault for key access. On the AZ-305 exam, this scenario tests your understanding of the order of operations for securing a data lake, often appearing as a trap where candidates try to enable hierarchical namespace post-creation or use a user-assigned identity incorrectly. Remember the memory tip: "Create first, then assign, then encrypt"—hierarchical namespace is a creation-time lock, while the managed identity and Key Vault configuration are post-deployment steps.
AZ-305 Design data storage solutions Practice Question
This AZ-305 practice question tests your understanding of design data storage solutions. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
Your company is designing a data lake solution using Azure Data Lake Storage Gen2. The solution must support hierarchical namespace for efficient directory operations, and must provide encryption at rest using customer-managed keys stored in Azure Key Vault. Which steps must you take to enable customer-managed key encryption for the storage account?
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
Create the storage account with hierarchical namespace enabled, then assign a system-assigned managed identity, and configure encryption with Azure Key Vault.
Option D is correct because Azure Data Lake Storage Gen2 requires hierarchical namespace to be enabled at account creation time, and customer-managed key encryption with Azure Key Vault requires a system-assigned managed identity to be assigned to the storage account after creation. The system-assigned identity is used to authenticate to Key Vault for key access, and encryption with customer-managed keys can be configured post-creation via the Azure portal or PowerShell.
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.
- ✗
Create the storage account with a user-assigned managed identity, then enable hierarchical namespace, and configure encryption.
Why it's wrong here
User-assigned identity is not required; system-assigned is sufficient.
- ✗
Create the storage account without hierarchical namespace, then enable it later, and configure encryption with Key Vault.
Why it's wrong here
Hierarchical namespace cannot be enabled after creation.
- ✗
Create the storage account and specify customer-managed key encryption during creation using the Azure portal.
Why it's wrong here
Customer-managed key encryption cannot be configured during creation; it must be done after.
- ✓
Create the storage account with hierarchical namespace enabled, then assign a system-assigned managed identity, and configure encryption with Azure Key Vault.
Why this is correct
This is the correct order: create account, enable identity, configure encryption.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume customer-managed key encryption can be configured during storage account creation, but Azure requires it to be set post-creation after a managed identity is assigned, and hierarchical namespace must be enabled at creation time.
Detailed technical explanation
How to think about this question
Under the hood, Azure Storage uses the storage account's system-assigned managed identity to authenticate to Azure Key Vault and retrieve the customer-managed key for envelope encryption. The hierarchical namespace is a property of the storage account that must be set at creation because it changes the underlying file system structure to support POSIX-like directory operations; enabling it later is not supported. In a real-world scenario, you might first create the account with hierarchical namespace, then assign the identity, grant the identity 'Get, Unwrap Key, Wrap Key' permissions on the Key Vault key, and finally update the encryption settings.
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.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AZ-305 question test?
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: Create the storage account with hierarchical namespace enabled, then assign a system-assigned managed identity, and configure encryption with Azure Key Vault. — Option D is correct because Azure Data Lake Storage Gen2 requires hierarchical namespace to be enabled at account creation time, and customer-managed key encryption with Azure Key Vault requires a system-assigned managed identity to be assigned to the storage account after creation. The system-assigned identity is used to authenticate to Key Vault for key access, and encryption with customer-managed keys can be configured post-creation via the Azure portal or PowerShell.
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.
About these practice questions
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Last reviewed: Jun 24, 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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