The answer is the hybrid cloud deployment model. This is correct because a hybrid cloud combines on-premises infrastructure, acting as a private cloud, with public cloud services, connected through secure networking like VPNs or Azure ExpressRoute. This architecture allows the bank to keep sensitive customer data on-premises to meet strict regulatory requirements while offloading less sensitive workloads to the public cloud for scalability and cost efficiency. On the Microsoft Azure Fundamentals AZ-900 exam, this scenario tests your understanding of how hybrid cloud solves compliance and data sovereignty challenges, often appearing as a scenario-based question where a trap is choosing “private cloud” alone—remember that hybrid is specifically about *connecting* both environments for unified management. A useful memory tip: think of “hybrid” as “home plus hotel”—keep your valuables at home (on-premises) but use the hotel (public cloud) for guests and overflow.
AZ-900 Describe cloud concepts Practice Question
This AZ-900 practice question tests your understanding of describe cloud concepts. 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.
A bank needs to keep some sensitive customer data on-premises due to regulatory requirements, but wants to use cloud services for less sensitive workloads. Which cloud deployment model should they adopt?
Why wrong: In a public cloud, all resources are owned and operated by the cloud provider, which may not meet data residency requirements.
B
Private cloud
Why wrong: A private cloud is dedicated to a single organization, often on-premises, but it does not leverage public cloud services for less sensitive workloads.
C
Hybrid cloud
Hybrid cloud connects on-premises and public cloud environments, allowing data and applications to be shared and placed where appropriate.
D
Community cloud
Why wrong: Community cloud is shared by several organizations with common concerns; it is not specific to mixing on-premises and public cloud.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Hybrid cloud
A hybrid cloud model combines on-premises infrastructure (private cloud) with public cloud services, allowing the bank to keep sensitive customer data on-premises to meet regulatory requirements while using the public cloud for less sensitive workloads. This approach provides a unified management plane and secure connectivity (e.g., VPN or Azure ExpressRoute) between the two environments, ensuring compliance and flexibility.
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.
✗
Public cloud
Why it's wrong here
In a public cloud, all resources are owned and operated by the cloud provider, which may not meet data residency requirements.
✗
Private cloud
Why it's wrong here
A private cloud is dedicated to a single organization, often on-premises, but it does not leverage public cloud services for less sensitive workloads.
✓
Hybrid cloud
Why this is correct
Hybrid cloud connects on-premises and public cloud environments, allowing data and applications to be shared and placed where appropriate.
Related concept
Read the scenario before looking for a memorised answer.
✗
Community cloud
Why it's wrong here
Community cloud is shared by several organizations with common concerns; it is not specific to mixing on-premises and public cloud.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse hybrid cloud with a simple combination of public and private clouds, but the key distinction is that hybrid cloud requires orchestration and unified management between the two environments, not just having both.
Detailed technical explanation
How to think about this question
In a hybrid cloud, technologies like Azure Arc or AWS Outposts can extend on-premises management to cloud resources, while services like Azure Site Recovery enable disaster recovery across environments. A real-world scenario involves a financial institution using Azure SQL Database in the public cloud for analytics while keeping core transaction data in an on-premises SQL Server instance, connected via a site-to-site VPN with IPSec encryption to ensure data sovereignty.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-900 question in full detail.
Describe cloud concepts — This question tests Describe cloud concepts — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Hybrid cloud — A hybrid cloud model combines on-premises infrastructure (private cloud) with public cloud services, allowing the bank to keep sensitive customer data on-premises to meet regulatory requirements while using the public cloud for less sensitive workloads. This approach provides a unified management plane and secure connectivity (e.g., VPN or Azure ExpressRoute) between the two environments, ensuring compliance and flexibility.
What should I do if I get this AZ-900 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.
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Question Discussion
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