- A
Always Encrypted with randomized encryption.
Why wrong: Randomized encryption does not support equality searches; it is used for pattern-hiding but prevents any comparison operations inside the database.
- B
Always Encrypted with deterministic encryption.
Why wrong: Deterministic encryption supports equality searches but is less secure because the database engine can see patterns from repeated values. Secure enclaves provide stronger security while still allowing equality searches.
- C
Always Encrypted with secure enclaves.
Secure enclaves allow computations on encrypted data inside a protected memory region. This supports equality searches and other operations while keeping the data encrypted from the database engine and administrators.
- D
Transparent Data Encryption (TDE).
Why wrong: TDE encrypts the entire database at rest but does not protect data from database administrators who have access to the database engine. It does not provide column-level encryption or computation support.
Quick Answer
The answer is Always Encrypted with secure enclaves, because it uniquely enables equality searches on encrypted columns while ensuring that even database administrators cannot view the plaintext data. This works by delegating the comparison operations to a trusted execution environment, or secure enclave, which decrypts the data only inside a hardware-protected memory region, so the SQL Server engine itself never sees the unencrypted values. On the AZ-500 exam, this scenario tests your understanding of how to balance data protection with operational query needs—a common trap is choosing standard Always Encrypted, which supports only equality searches on deterministic encryption but still exposes the column encryption key to the DBA. The key distinction is that secure enclaves move the decryption into an isolated environment, blocking DBA access entirely. Memory tip: think of the enclave as a “vault within the server”—the DBA can see the vault, but only the enclave holds the key to open it.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 healthcare company stores sensitive patient data in Azure SQL Database. They want to encrypt specific columns containing Personally Identifiable Information (PII) so that even database administrators cannot view the data. The security team also needs to perform equality searches (e.g., WHERE SSN = '123-45-6789') on the encrypted columns. Which encryption technology should they implement?
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
Always Encrypted with secure enclaves.
Always Encrypted with secure enclaves is the correct choice because it supports rich computations (including equality searches) on encrypted columns while ensuring that the data remains encrypted even from database administrators. The secure enclave technology allows operations like equality comparisons to be performed inside a trusted execution environment, preventing the database engine from seeing the plaintext data.
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.
- ✗
Always Encrypted with randomized encryption.
Why it's wrong here
Randomized encryption does not support equality searches; it is used for pattern-hiding but prevents any comparison operations inside the database.
- ✗
Always Encrypted with deterministic encryption.
Why it's wrong here
Deterministic encryption supports equality searches but is less secure because the database engine can see patterns from repeated values. Secure enclaves provide stronger security while still allowing equality searches.
- ✓
Always Encrypted with secure enclaves.
Why this is correct
Secure enclaves allow computations on encrypted data inside a protected memory region. This supports equality searches and other operations while keeping the data encrypted from the database engine and administrators.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Transparent Data Encryption (TDE).
Why it's wrong here
TDE encrypts the entire database at rest but does not protect data from database administrators who have access to the database engine. It does not provide column-level encryption or computation support.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse deterministic encryption (which supports equality searches but not data protection from DBAs) with secure enclaves (which provides both equality search capability and full data protection from DBAs), leading them to select option B instead of C.
Detailed technical explanation
How to think about this question
Always Encrypted with secure enclaves leverages a trusted execution environment (e.g., Intel SGX or Windows Virtualization-based security) to decrypt data only within the enclave, allowing operations like equality, pattern matching, and range comparisons without exposing plaintext to the SQL Server engine. The column encryption keys are never revealed to the database engine; they are provided to the enclave by the client application, and the enclave performs the decryption and computation in a protected memory region. This approach is critical in scenarios where the database is hosted in a shared or untrusted environment, such as a multi-tenant cloud database, and strict separation of duties is required.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
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Secure compute, storage, and databases — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-500 question test?
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: Always Encrypted with secure enclaves. — Always Encrypted with secure enclaves is the correct choice because it supports rich computations (including equality searches) on encrypted columns while ensuring that the data remains encrypted even from database administrators. The secure enclave technology allows operations like equality comparisons to be performed inside a trusted execution environment, preventing the database engine from seeing the plaintext data.
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 →
Same concept, more angles
2 more ways this is tested on AZ-500
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. A company stores sensitive healthcare data in Azure SQL Database. They need to encrypt specific columns containing patient diagnosis codes so that even database administrators with the 'sysadmin' role cannot view the plaintext. The application must be able to perform equality searches (WHERE clauses) on the encrypted columns. Which encryption technology should they implement?
medium- A.Transparent Data Encryption (TDE)
- ✓ B.Always Encrypted (deterministic encryption)
- C.Row-Level Security (RLS)
- D.Dynamic Data Masking (DDM)
Why B: Always Encrypted with deterministic encryption ensures that sensitive columns are encrypted at the client side, so the encryption keys are never revealed to the database engine, including sysadmin roles. Deterministic encryption generates the same ciphertext for the same plaintext, enabling equality searches (WHERE clauses) on encrypted columns without exposing plaintext data to the server.
Variation 2. A company uses Azure SQL Database and wants to protect sensitive data (e.g., credit card numbers) from database administrators. They require that the data is encrypted at rest and in transit, and only a client application using a specific driver can decrypt it. Which technology should they implement?
medium- A.Transparent Data Encryption (TDE)
- ✓ B.Always Encrypted
- C.Dynamic Data Masking (DDM)
- D.Row-Level Security (RLS)
Why B: Always Encrypted is the correct choice because it ensures that sensitive data (e.g., credit card numbers) is encrypted both at rest and in transit, and the encryption keys are never exposed to the database engine. Only a client application using the Always Encrypted-enabled driver (e.g., ADO.NET with Column Encryption Setting=enabled) can decrypt the data, protecting it from database administrators or any unauthorized access to the database server.
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Last reviewed: Jun 11, 2026
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