The answer is Microsoft Defender for SQL, specifically its Data Discovery & Classification feature, because it automatically scans your Azure SQL Managed Instance for sensitive data, labels it with built-in or custom sensitivity classifications, and natively integrates with Microsoft Purview for unified data governance. This solution requires minimal manual intervention as it continuously discovers and recommends classifications based on patterns and machine learning, whereas Azure Policy enforces compliance rules but does not classify data, Dynamic Data Masking only obfuscates without labeling, and SQL Server Audit merely logs access. On the AZ-500 exam, this question tests your ability to distinguish between data protection tools—Defender for SQL handles both discovery and classification, while Purview provides the central catalog. A common trap is confusing Dynamic Data Masking (which hides data) with classification (which labels data). Memory tip: think “Defender discovers and classifies, Purview centralizes.”
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.
Your company has an Azure SQL Managed Instance that stores sensitive customer data. You need to implement a solution that automatically classifies and protects the sensitive data in the database, with minimal manual intervention. The solution should integrate with Microsoft Purview. What 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
✓
Microsoft Defender for SQL (Data Discovery & Classification)
Option B is correct because Microsoft Defender for SQL includes data discovery and classification, which can be integrated with Purview. Option A is wrong because Azure Policy is for compliance enforcement, not classification. Option C is wrong because Dynamic Data Masking masks data but does not classify it. Option D is wrong because SQL Server Audit logs access but does not classify data.
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.
✓
Microsoft Defender for SQL (Data Discovery & Classification)
Why this is correct
Defender for SQL provides automated data discovery and classification, with integration to Purview for cataloging.
Audit logs database events but does not classify sensitive data.
✗
Azure Policy with built-in SQL classification policy
Why it's wrong here
Azure Policy can enforce classification but does not automatically discover sensitive data.
✗
Dynamic Data Masking
Why it's wrong here
Dynamic Data Masking only masks data for unauthorized users; it does not classify or catalog data.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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 compute, storage, and databases — This question tests Secure compute, storage, and databases — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Microsoft Defender for SQL (Data Discovery & Classification) — Option B is correct because Microsoft Defender for SQL includes data discovery and classification, which can be integrated with Purview. Option A is wrong because Azure Policy is for compliance enforcement, not classification. Option C is wrong because Dynamic Data Masking masks data but does not classify it. Option D is wrong because SQL Server Audit logs access but does not classify data.
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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Question Discussion
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