The answer is Encryption at host, which is the correct Azure Disk Encryption option to encrypt ephemeral disks on Azure VMs for PCI DSS compliance. This feature encrypts the temp disk as well as the OS and data disk caches at the host level, ensuring that all data written to temporary storage is protected—a critical requirement that standard encryption methods miss. On the AZ-500 exam, this question tests your understanding of the gaps in Azure Disk Encryption (ADE) and server-side encryption (SSE), which only cover persistent disks and their caches, not the ephemeral temp disk. A common trap is assuming ADE or double encryption suffices, but neither addresses the temp disk unless host encryption is explicitly enabled. Memory tip: think of "host" as the guardian of the "guest" temp disk—if it’s not encrypted at the host, your ephemeral data is exposed.
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.
You are designing a secure compute solution for a critical application that must comply with PCI DSS. The application runs on Azure Virtual Machines with sensitive data. You need to ensure that ephemeral disks are encrypted at the host level. Which Azure Disk Encryption option should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Encryption at host
Encryption at host encrypts the temp disk and OS/data disk caches, which is required for PCI DSS. Option C is correct. Option A (Azure Disk Encryption) encrypts OS/data disks but not temp disks. Option B (Server-side encryption with PMK) is default but does not encrypt temp disks. Option D (double encryption) encrypts at two layers but still does not cover temp disk unless host encryption is used.
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.
✗
Server-side encryption (SSE) with platform-managed keys
Why it's wrong here
SSE encrypts managed disks but not temp disks.
✗
Azure Disk Encryption (ADE) with Key Vault
Why it's wrong here
ADE encrypts OS and data disks but does not encrypt the temp disk.
✗
Double encryption (SSE with CMK and ADE)
Why it's wrong here
Double encryption provides two layers but still does not encrypt temp disks without host encryption.
✓
Encryption at host
Why this is correct
Encryption at host encrypts the temp disk and disk caches, meeting PCI DSS requirements.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
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.
Detailed technical explanation
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.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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: Encryption at host — Encryption at host encrypts the temp disk and OS/data disk caches, which is required for PCI DSS. Option C is correct. Option A (Azure Disk Encryption) encrypts OS/data disks but not temp disks. Option B (Server-side encryption with PMK) is default but does not encrypt temp disks. Option D (double encryption) encrypts at two layers but still does not cover temp disk unless host encryption is used.
What should I do if I get this AZ-500 question wrong?
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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