A company stores highly sensitive data in Azure Blob Storage. The security policy requires that all data is encrypted at rest using a key that is stored in Azure Key Vault, and that the storage account uses its system-assigned managed identity to access the key. Which encryption configuration 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.
Distractor review
Server-side encryption with service-managed keys
Service-managed keys are managed by Microsoft, not by the customer. The requirement specifies using a key stored in the customer's Key Vault.
Best answer
Server-side encryption with customer-managed keys (CMK)
SSE-CMK uses a key from Azure Key Vault that the customer controls. The storage account's system-assigned managed identity can authenticate to Key Vault to access the key.
Distractor review
Client-side encryption
Client-side encryption encrypts data before sending it to Azure Storage, and keys are managed by the client application, not by the storage account's managed identity.
Distractor review
Azure Disk Encryption
Azure Disk Encryption is used for virtual machine disks, not for Azure Blob Storage. It also uses Key Vault but is not appropriate for this scenario.
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.
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Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
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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) — Server-side encryption (SSE) with customer-managed keys (CMK) allows you to specify your own key in Azure Key Vault. The storage account can be granted access to the key vault using its system-assigned managed identity, which is tied to the lifecycle of the storage account. Service-managed keys are encrypted by Microsoft. Client-side encryption is done by the client application, not by Azure. Disk Encryption is for IaaS VMs, not Blob Storage.
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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