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A company stores confidential data in Azure Blob Storage. They need to ensure that all data at rest is encrypted and they must be able to quickly rotate the encryption key on demand in case of a security breach. They also want to minimize administrative overhead. Which encryption option should they use?

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A company stores confidential data in Azure Blob Storage. They need to ensure that all data at rest is encrypted and they must be able to quickly rotate the encryption key on demand in case of a security breach. They also want to minimize administrative overhead. Which encryption option should they use?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

Server-side encryption with Microsoft-managed keys

Microsoft manages the keys and rotates them automatically. Customers cannot perform on-demand rotation.

B

Best answer

Server-side encryption with customer-managed keys (CMK) stored in Azure Key Vault

CMK allows you to bring your own key and rotate it as needed. Azure Key Vault integration simplifies key management.

C

Distractor review

Client-side encryption

Client-side encryption requires application changes to encrypt/decrypt data, increasing overhead and complexity.

D

Distractor review

Azure Disk Encryption

Azure Disk Encryption is for encrypting OS and data disks of VMs, not applicable to Azure Blob Storage.

Common exam trap

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.

Technical deep dive

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.

Related practice questions

Related AZ-500 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

FAQ

Questions learners often ask

What does this AZ-500 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Server-side encryption with customer-managed keys (CMK) stored in Azure Key Vault — Server-side encryption with customer-managed keys (CMK) stored in Azure Key Vault allows on-demand key rotation. Microsoft-managed keys cannot be rotated by the customer. Client-side encryption adds significant overhead.

What should I do if I get this AZ-500 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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