The answer is enabling Azure Storage encryption with customer-managed keys (CMK). This is correct because it allows you to use your own encryption key stored in Azure Key Vault to protect all data at rest in the storage account, and crucially, it provides the ability to revoke access instantly by disabling, deleting, or rotating that key in Key Vault—rendering the data inaccessible until the key is restored. On the AZ-500 exam, this scenario tests your understanding of data protection controls and the relationship between Azure Storage and Key Vault; a common trap is confusing CMK with infrastructure encryption or Azure Disk Encryption, which apply to different services. Remember the memory tip: “CMK = Control + Revoke” — if you control the key, you can revoke access on demand.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. 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 company stores critical business data in an Azure Storage account (Blob Storage). They want to ensure that all data is encrypted at rest using a customer-managed key (CMK) stored in Azure Key Vault. They also need to be able to revoke access to the data quickly if a breach is suspected. Which feature should they enable on the storage account to enforce CMK?
Enable infrastructure encryption for the storage account
Why wrong: Infrastructure encryption provides a second layer of encryption at the infrastructure level, but it still uses the same key type as the base encryption. It does not provide the ability to revoke access via key disabling.
B
Enable Azure Storage encryption with customer-managed keys
This configures the storage account to use a CMK from Key Vault. Revocation is done by disabling the key in Key Vault, making the data inaccessible.
C
Enable soft delete for blobs
Why wrong: Soft delete protects against accidental deletion, but does not change the encryption key management.
D
Enable versioning for blobs
Why wrong: Versioning keeps previous versions of blobs, but does not affect encryption.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable Azure Storage encryption with customer-managed keys
Option B is correct because enabling Azure Storage encryption with customer-managed keys (CMK) allows you to use your own key stored in Azure Key Vault to encrypt all data at rest in the storage account. This also provides the ability to revoke access to the data quickly by disabling, deleting, or rotating the key in Key Vault, which renders the data inaccessible until the key is restored.
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.
✗
Enable infrastructure encryption for the storage account
Why it's wrong here
Infrastructure encryption provides a second layer of encryption at the infrastructure level, but it still uses the same key type as the base encryption. It does not provide the ability to revoke access via key disabling.
✓
Enable Azure Storage encryption with customer-managed keys
Why this is correct
This configures the storage account to use a CMK from Key Vault. Revocation is done by disabling the key in Key Vault, making the data inaccessible.
Related concept
Read the scenario before looking for a memorised answer.
✗
Enable soft delete for blobs
Why it's wrong here
Soft delete protects against accidental deletion, but does not change the encryption key management.
✗
Enable versioning for blobs
Why it's wrong here
Versioning keeps previous versions of blobs, but does not affect encryption.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse infrastructure encryption (which adds a second encryption layer but uses Microsoft-managed keys) with customer-managed key encryption, or they mistakenly think soft delete or versioning can enforce encryption key control and revocation.
Detailed technical explanation
How to think about this question
When you enable customer-managed keys for Azure Storage encryption, the storage account uses the key from Azure Key Vault to wrap the account's root data encryption key (DEK) via envelope encryption. Revoking access is achieved by disabling or deleting the key in Key Vault, which immediately prevents the storage service from unwrapping the DEK, making all data unreadable. This mechanism is critical for compliance scenarios where the organization must maintain control over encryption keys and have the ability to instantly cut off access in response to a security incident.
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-500 question in full detail.
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Enable Azure Storage encryption with customer-managed keys — Option B is correct because enabling Azure Storage encryption with customer-managed keys (CMK) allows you to use your own key stored in Azure Key Vault to encrypt all data at rest in the storage account. This also provides the ability to revoke access to the data quickly by disabling, deleting, or rotating the key in Key Vault, which renders the data inaccessible until the key is restored.
What should I do if I get this AZ-500 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
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 →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You need to ensure that an Azure Storage account's blob data is encrypted at rest using a customer-managed key (CMK) stored in Azure Key Vault. What should you do first?
easy
A.Generate a random 256-bit key and store it in the storage account.
✓ B.Create an Azure Key Vault with soft-delete and purge protection enabled.
C.Create a system-assigned managed identity for the storage account.
D.Enable Azure Information Protection for the storage account.
Why B: Option B is correct because to use CMK, you must first create a Key Vault with soft-delete and purge protection enabled. Then you can configure the storage account to use that key. Option A (random password) is not relevant. Option C (system-assigned managed identity) is automatically created but must be granted access. Option D (Azure Information Protection) is for classification.
Variation 2. A company stores sensitive customer data in an Azure Storage account. The security policy requires that all data be encrypted at rest using a customer-managed key (CMK) stored in Azure Key Vault. They also need the ability to disable the key in case of a security breach and have the data become inaccessible immediately. Which feature should they enable on the storage account to achieve this?
medium
✓ A.Enable Azure Storage encryption with customer-managed keys (CMK)
B.Use service-managed keys (SSE) with platform-managed keys
C.Enable Azure Disk Encryption on VMs that access the storage account
D.Configure Azure Information Protection for the storage account
Why A: Option A is correct because enabling Azure Storage encryption with customer-managed keys (CMK) allows the customer to use their own key stored in Azure Key Vault for encrypting the storage account data at rest. The key can be disabled or revoked in Key Vault, which immediately renders the data inaccessible because Azure Storage uses the key to wrap the data encryption key; without access to the CMK, decryption cannot occur.
Last reviewed: Jun 11, 2026
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This AZ-500 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-500 exam.
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