The correct answer is to enable a service endpoint for Microsoft.Sql on the subnet. This configuration works because a service endpoint extends the virtual network identity to the Azure service, allowing only traffic from Azure services—such as Azure Data Factory—to reach the SQL Managed Instance while explicitly blocking all public internet traffic. On the AZ-500 exam, this question tests your understanding of network segmentation for IaaS-based SQL Managed Instance, which differs from PaaS databases like Azure SQL Database that use private endpoints. A common trap is confusing private endpoints with service endpoints: remember that SQL Managed Instance is deployed inside your VNet as an IaaS resource, so a service endpoint on the subnet is the most secure and direct way to restrict traffic to Azure services only. Memory tip: “Service endpoint for SQL MI = Azure services only; private endpoint is for PaaS, not IaaS.”
AZ-500 Secure networking Practice Question
This AZ-500 practice question tests your understanding of secure networking. 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 organization has an Azure virtual network with a subnet hosting a SQL Managed Instance. You need to ensure that only traffic from Azure services (like Azure Data Factory) can reach the SQL Managed Instance, but you must not allow any public internet traffic. What is the most secure configuration?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Enable a service endpoint for Microsoft.Sql on the subnet.
Option B is correct because a service endpoint for Microsoft.Sql on the subnet allows only Azure service traffic to the SQL Managed Instance while blocking public internet traffic. Option A is wrong because NSG rules are limited and can be bypassed. Option C is wrong because a private endpoint is used for PaaS resources, not for SQL Managed Instance which is IaaS-based. Option D is wrong because Azure Firewall would introduce complexity and potentially allow other traffic.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
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 a service endpoint for Microsoft.Sql on the subnet.
Why this is correct
Service endpoints restrict traffic to Azure services only, blocking public internet.
Create a private endpoint for the SQL Managed Instance.
Why it's wrong here
Private endpoints are for PaaS, not for SQL Managed Instance.
✗
Configure a network security group (NSG) with a deny-all inbound rule and an allow rule for the Azure Data Factory IP range.
Why it's wrong here
IP ranges change and are not limited to Azure services only.
✗
Deploy Azure Firewall and create a rule to allow traffic from Azure Data Factory.
Why it's wrong here
Overly complex and may allow unintended traffic.
Common exam traps
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Detailed technical explanation
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
CIDR notation defines the prefix length.
Block size helps identify subnet boundaries.
Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
The required host count determines the smallest suitable subnet.
TExam Day Tips
→Write the block size before choosing the subnet.
→Check whether the question asks for hosts, subnets or a specific address range.
→Do not confuse /24, /25, /26 and /27 host counts.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Real-world example
How this comes up in practice
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
Secure networking — This question tests Secure networking — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Enable a service endpoint for Microsoft.Sql on the subnet. — Option B is correct because a service endpoint for Microsoft.Sql on the subnet allows only Azure service traffic to the SQL Managed Instance while blocking public internet traffic. Option A is wrong because NSG rules are limited and can be bypassed. Option C is wrong because a private endpoint is used for PaaS resources, not for SQL Managed Instance which is IaaS-based. Option D is wrong because Azure Firewall would introduce complexity and potentially allow other traffic.
What should I do if I get this AZ-500 question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
What is the key concept behind this question?
CIDR notation defines the prefix length.
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